CEU Electronic Theses and Dissertations, 2024
| Author | Sameem, Rahmatullah |
|---|---|
| Title | The Interplay of the Hawala System and Government Policies in Exchange Rate Management and Inflation Dynamics in Afghanistan |
| Summary | This thesis explores the intricate dynamics of Afghanistan's informal financial system, particularly the transition from a collapsed formal banking sector to the prominence of the informal Hawala system. After years of conflict and institutional breakdown, the formal financial institutions, including the Central Bank, faced significant challenges. The vacuum left by their decline was filled by the Hawala system, a traditional and informal means of financial transfer deeply ingrained in Afghan society. The study delves into the historical evolution of the Hawala system, its resilience during periods of political turmoil, its role in the exchange rate and inflation management and its interplay with government policy and measures. Additionally, it scrutinizes the complexities of Afghanistan's currency landscape, the challenges faced by the new government in stabilizing the economy, and the Taliban's strategy in controlling inflation and keeping the Afghani value higher after their takeover of Kabul in August 2021. Despite, the imposition of sanctions on the Taliban regime they still managed the financial collapse and controlled prices. The research highlights the interplay of the Hawala system and government policies in exchange rate management and inflation dynamics in Afghanistan. |
| Supervisor | Supervisor: Yusaf Akbar |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2024/sameem_rahmatullah.pdf |
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