Yunis Safi, a businessman in Kabul, knows very well the importance of showing off your phone if you want something done.

Also read: Afghanistan since Taliban takeover

“In Afghanistan, your phone is your personality,” he said, smiling, a jewel-encrusted ring on each hand. One boasts an emerald, the other a fat Russian diamond. “When you go to a meeting with the government, the better your phone, the more they respect you.” Mr. Safi runs a phone shop in the posh Shar-e-Naw neighborhood. An armed guard stands outside. The iPhone 15 Pro Max adorns the shop shelves, retailing for $1,400. He has customers ready to part with this sum of money, which may come as a surprise to some given the country’s economic woes and more than half the population relying on humanitarian aid to survive.

Also read: Timeline | The Taliban’s rapid advance across Afghanistan

Afghanistan’s finances were on shaky ground even before the Taliban seized power in 2021. The budget relied heavily on foreign aid and corruption was rife. The takeover sent Afghanistan’s economy into a tailspin, billions in international funds were frozen, and tens of thousands of highly skilled Afghans fled the country and took their money with them.

But, even amid difficult conditions, some businesses are making money out of Taliban rule. Women are reduced to customers, however, as authorities have barred them from most jobs, including retail. None of Mr. Safi’s 78 staff are women.

He has tapped into a diverse consumer base — the ones hungry for the latest iPhone release and those happier with simple handsets, which make up the bulk of his sales and sell for between $20 and $200.

The Taliban used to attack phone towers and threaten telecom companies, accusing them of colluding with United States and other international forces in helping track insurgents’ movements through mobile phone signals. Now, they’re investing in the 4G mobile networks.

The Communications Ministry says 2 million new SIM cards have been issued in the past two years and that subscriber numbers are increasing. Ministry spokesperson Enayatullah Alokozai said the government was plowing $100 million into the telecom sector and had fully restored hundreds of towers.

There are 22.7 million active SIM cards in a country of 41 million people. Of these, 10 million are for voice calls and the rest are for mobile internet.

According to Trade Ministry figures, phone imports have risen. More than 1,584 tons of phones came into Afghanistan in 2022. Last year, it was 1,895 tons.

Mr. Safi said he has many Taliban customers and it’s the younger ones who prefer iPhones. “Of course they need smartphones. They use social media, they like making videos. The iPhone has better security than Samsung. The camera resolution, processor, memory are all better. Afghans use their smartphones like anyone else.” Mr. Safi has the iPhone 15 Pro Max, wears an Apple Watch Ultra and owns three cars.

Business was bad immediately after the Taliban takeover but it’s improving, Mr. Safi said. “The people buying the new release iPhones are the ones with relatives abroad sending money to Afghanistan.” Remittances are a lifeline, although they’re less than half of what they were before the Taliban took power and the banking sector collapsed.

At the raucous Shahzada Market in Kabul, hundreds of money exchangers clutch stacks of the local currency, the Afghani, and noisily hawk their wares. They occupy every floor, stairwell, nook and cranny.

Abdul Rahman Zirak, a senior official at the money exchange market, estimates that $10 million changes hands daily. The diaspora sends mostly U.S. dollars to families, who exchange it for the Afghani.

There used to be more ways to send money to Afghanistan before the Taliban seized control. But there are no more links to  Society for Worldwide Interbank Financial Telecommunications (SWIFT) or international banking and that’s a major reason why business is brisk at the market, he said.

“The work of money exchangers has increased and strengthened,” Mr. Zirak said. “Money transfers come from Canada, the U.S., Europe, Australia, Arab nations and other neighboring countries.” Trade becomes hectic during the holidays. During the holy month of Ramadan, 20,000 people visited the market daily and it took more than 90 minutes to enter, he said.

“If the sanctions are removed and the assets are unfrozen, then maybe our business will decrease. But I don’t see that happening. Many don’t have bank accounts. Unemployment is high, so people send money to Afghanistan. Our business will be needed for years to come.” Irfanullah Arif, who runs Haqqani Books, a specialist retailer of Islamic texts, is also upbeat about his fortunes. The majority of his customers are teachers and students at religious schools, or madrassas.

There are at least 20,000 madrassas in Afghanistan. The Taliban want to build more. Last year, the supreme leader reportedly ordered the recruitment of 1,00,000 madrassa teachers.

While Mr. Arif’s business suffered like everyone else’s in the chaotic aftermath of the takeover, there was another reason. “All the students left the madrassas and went to work for the [Taliban] government,” said Mr. Arif.

The Taliban’s push for religious education has given him some relief. Last year, he sold 25,000 textbooks.

But there’s a price to pay for success. Mr. Arif imports everything and the Taliban are laser-focused on collecting revenue, even on Islamic literature.

Mr. Arif pays a tax of 170 Afghanis ($2.36) on a carton of 100 books, the shipping cost for which is 500 Afghanis ($6.95). Taxes on his bookstore have tripled under Taliban rule.

“That’s why books are expensive in Afghanistan,” he sighed. “With the increase of madrassas, our trade has gone up, but so have the taxes.”

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar in early trade on Thursday, tracking a firm American currency and negative equity market sentiment.

Forex traders said the Indian currency was also pressured due to massive selling of equities by foreign investors even as the crude oil prices hovered close to $90 a barrel amid geopolitical tensions in the Middle East.

At the interbank foreign exchange market, the local unit opened weak at 83.19 and then touched the lowest level of 83.23 against the greenback, registering a loss of 6 paise from its previous close.

This is the third day of fall in the rupee. It dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday. Forex markets were closed on Tuesday on account of Dussehra. On Wednesday, the rupee closed at 83.17 against the U.S. dollar.

Analysts attributed the strengthening dollar to a record rise in the U.S. Treasury yields after positive data on home sales in the U.S. on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 106.75 on Thursday.

Global oil price benchmark Brent crude declined 0.31 per cent to $89.85 per barrel.

On the domestic equity market front, the Sensex plunged 478.55 points or 0.75 per cent to 63,570.51 while broader Nifty tanked 152.15 points or 0.80 per cent to 18,970.

Foreign Institutional Investors sold equities worth ₹4,236.60 crore on Wednesday, according to exchange data.

The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade. File
| Photo Credit: V. SUDERSHAN

The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade on Wednesday, tracking a weak America currency and softening crude oil prices in the overseas market.

Some buying by foreign equity investors supported the Indian currency even though it was pressured by a subdued sentiment in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened stronger by 8 paise at 83.08 and then touched the lowest level of 83.11 against the greenback, registering a gain of 5 paise from its previous close.

On Monday, the rupee closed 4 paise lower at 83.16 against the U.S. dollar. Forex markets were closed on Tuesday on account of Dussehra.

Gaurang Somaiya, Forex and bullion analyst, Motilal Oswal Financial Services, said that the dollar fell against its major crosses after U.S. yields retracted from its record level.

He said the USD-INR (Spot) is expected to “trade sideways with a negative bias and quote in the range of 82.80 and 83.20”.

“Market participants will now be keeping an eye on the US GDP data that is due tomorrow and could trigger more wild swings in bond yields and currency markets. Euro and pound fell in yesterday’s session after preliminary manufacturing data came in below estimates,” Mr. Somaiya added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 106.18.

Global oil price benchmark Brent crude inched up 0.05 per cent to $88.11 per barrel.

On the domestic equity market front, Sensex fell 48.16 points or 0.06 per cent to 64,530.02 points while broader Nifty was down 11.20 points or 0.06 per cent at 19,270.55 points.

Foreign Institutional Investors bought equities worth market ₹252.25 crore on Monday, according to exchange data.

The rupee paused its two days of gains and settled 6 paise lower at 83.24 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee paused its two days of gains and settled 6 paise lower at 83.24 (provisional) against the U.S. dollar on Thursday as rising crude oil prices dented the investor sentiment.

Forex analysts said early gains in the domestic currency on the back of the weak dollar were reversed by the subdued domestic equity markets and concerns over foreign funds withdrawal.

At the interbank foreign exchange, the rupee opened at 83.17 and then traded between the intra-day peak of 83.12 and the lowest level of 83.25 against the greenback. The local unit finally settled at 83.24 (provisional), registering a loss of 6 paise from its previous close.

The rupee had settled 7 paise higher on Wednesday, a day after gaining 3 paise against the American currency.

Market participants were also awaiting the industrial production data for August and inflation numbers for September to be released later in the day, which will provide insights into the country’s economic health.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee is expected to trade with a slight positive bias on expectations of a decline in India’s inflation and a rise in risk appetite in global markets.

“Traders may remain cautious ahead of India’s CPI and IIP data. Traders may also take cues from U.S. CPI, weekly unemployment claims and Federal Budget balance data. USD-INR spot price is expected to trade in a range of ₹82.70 to ₹83.60,” Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 105.72.

Brent crude futures, the global oil benchmark, witnessed a sharp rise of 1.20 per cent to $86.85 per barrel.

On the domestic equity market front, the BSE Sensex closed 64.66 points or 0.10 per cent lower at 66,408.39. The broader NSE Nifty declined 17.35 points or 0.09 per cent to 19,794.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹421.77 crore, as per exchange data.

Image for representation
| Photo Credit: SUDERSHAN V

The rupee depreciated by 16 paise to settle at 82.79 (provisional) against the U.S. dollar on Thursday, tracking a firm American currency and rising crude oil prices.

Forex traders said that negative sentiment in the equity market and outflow of foreign funds also weighed on the domestic unit. Investors were also awaiting the domestic GDP data which is scheduled to be announced later in the day.

At the interbank foreign exchange, the domestic unit opened at 82.65 and moved between the peak of 82.58 and the lowest level of 82.76 during intra-day trade.

The Indian currency finally settled at 82.79 (provisional) against the dollar, registering a fall of 16 paise compared to the previous close.

On Wednesday, the rupee closed at 82.63 against the dollar.

The latest US data indicated that the pace of growth was less than expected, raising hopes for the easing of interest rates by the Federal Reserve.

“We expect the rupee to trade with a slight negative bias on expectations that the US dollar may bounce back amid disappointing European data. Rising crude oil prices and FII outflows may also weigh on the rupee. Month-end dollar demand from importers may also put downside pressure on the domestic unit. However, improved global risk appetite amid expectations of a Chinese stimulus may support riskier assets.

“Traders may remain cautious ahead of India’s fiscal deficit and GDP data today and manufacturing PMI data tomorrow. Investors may remain cautious ahead of the US core PCE deflator, weekly unemployment claims and personal income data today and non-farm payrolls report tomorrow,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Meanwhile, the dollar index rose 0.37 per cent to 103.54.

Brent crude futures, the global oil benchmark, was trading 0.52% higher at $86.31 per barrel.

On the domestic equity market front, the BSE Sensex closed 255.84 points or 0.39% lower at 64,831.41 points while the Nifty declined by 93.65 points or 0.48% to end at 19,253.80 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹494.68 crore, according to exchange data.