Taliban bans foreign currencies in Afghanistan
The Taliban has banned
the use of foreign currencies in Afghanistan, a move that could further disrupt
an economy on the brink of collapse.
“The economic situation and national interests
in the country require that all Afghans use Afghani currency in their every
trade,” the Taliban said.
The economy is struggling due to the
withdrawal of international financial support after the Taliban took control.
The US dollar has been used widely in
Afghanistan’s markets.
Dollars are also often used for trade in areas
bordering Afghanistan’s neighbours such as Pakistan.
“The Islamic Emirate instructs all citizens,
shopkeepers, traders, businessmen and the general public to henceforth conduct
all transactions in Afghanis and strictly refrain from using foreign currency,”
Taliban spokesman Zabihullah Mujahid said in a statement posted online.
“Anyone violating this order will face legal
action,” the statement said.
Assets
frozen, funds stopped
After the Taliban seized control of the
country in August, billions of dollars of Afghanistan’s overseas assets were
frozen by the US Federal Reserve and central banks in Europe.
“We believe that it’s essential that we maintain
our sanctions against the Taliban but at the same time find ways for legitimate
humanitarian assistance to get to the Afghan people. That’s exactly what we’re
doing,” Deputy United States Treasury Secretary Wally Adeyemo told the US
Senate Banking Committee last month.
The Taliban has called for the release of
Afghanistan’s assets that are being held overseas as the nation faces a severe
cash crunch.
Afghanistan has also been hit by the exodus of
foreign aid. Grants from overseas previously financed three quarters of its
public spending.
Earlier this year, the International
Monetary Fund (IMF) said Afghanistan will no longer be able to
access its resources, while the World Bank also halted funding for projects in
the country.
Last month, the IMF warned that the country’s
economy could shrink by 30% this year, pushing millions into poverty and
causing a humanitarian crisis.
The fund also said that Afghanistan’s economic
woes could fuel a refugee crisis impacting neighbouring countries, Turkey and
Europe.
The country is also suffering from a severe
drought, which has ruined much of its wheat crop and sent prices soaring.
The United Nations World Food Programme has
warned that millions of Afghans could face starvation due to a combination of
the drought, conflict and Covid-19.
However, although Western powers have said
that they want to avoid a humanitarian disaster in Afghanistan, they have
refused to officially recognise the Taliban government.
Source: BBC