Taliban announces ban on use of foreign currencies in Afghanistan

With the economy on the verge of collapse, banks are running out on cash, and the international world has so far refused to recognise the Taliban administration as a legitimate government.

Team Newsable

Kabul Serena Hotel, First Published Nov 3, 2021, 10:22 AM IST | Last Updated Nov 3, 2021, 10:25 AM IST

Afghanistan's Taliban declared a ban on the use of foreign currency, threatening to damage the country's already troubled economy severely. Since the terrorist organisation seized control in mid-August, the Afghani, the national currency, has plummeted, and the country's reserves have been frozen overseas. With the economy on the verge of collapse, banks are running out on cash, and the international world has so far refused to recognise the Taliban administration as a legitimate government. Meanwhile, many transactions within the nation are handled in US dollars, while Pakistani rupees are utilised in locations adjacent to southern border trade lines.

However, Taliban spokesperson Zabiullah Mujahid warned in a press statement that anyone utilising foreign cash for local commerce will be persecuted from now on. He said that all Afghans must utilise Afghani cash in all transactions due to the country's economic position and national interests. He added that the Islamic Emirate advises all citizens, retailers, traders, businesses, and the general public to conduct all Afghanis transactions going forward and desist from utilising foreign money.

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As the drought-stricken nation faces a financial constraint, mass famine, and a fresh migratory catastrophe, the Taliban administration is demanding for the release of billions of dollars in central bank reserves. Afghanistan's former Western-backed government has stashed billions of dollars in assets with the US Federal Reserve and other European central banks.

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However, following the Taliban's takeover of the country in August, the United States, as well as the World Bank and the International Monetary Fund (IMF), chose to deny Afghanistan access to more than $9.5 billion in assets and loans.

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