Taliban has announced to ban the use of foreign currencies in Afghanistan. Experts say this move could further disrupt the economy which is already on the brink of collapse. The Taliban said, ‘’ the economic situation and national interests in the country require that all afghan use Afghani currency in their every trade.’’ Also, international financial support is not available after the Taliban took over. The economy is struggling, as previously US dollar was being used in afghan markets. Additionally, Dollar was used for border trade and transactions with neighbor country Pakistan.
Taliban spoke person Zabihullah Mujahid said in a statement posted online,
‘’ 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.’’ Also, ‘’ anyone violating this order will face legal action,’’ the statement said.
How Afghan economy will run without funds?
When the Taliban took over the country in August. US Federal Reserve and Central banks in Europe seized billions of dollars of Afghanistan’s overseas assets. Deputy United States Treasury secretary Wally Adeyemo told the US Senate Banking Committee last month. That ‘’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 are doing.’’
Moreover, the International Monetary fund (IMF) said that its resources will not be available for Afghanistan. Additionally, stopped funding the projects in progress. Not availability of funds can bring a serious threat to the economy and ultimately lead to a humanitarian crisis and fuel a refugee crisis. Moreover, this crisis can have a huge impact on neighboring countries including, turkey, Pakistan, and Europe.
Impact on Economy
Recently, the United Nations World Food Programme warned that millions of Afghans can starve due to a combination of conflict, drought, and covid-19. Western countries have refused to accept and recognize the Taliban government.
Many experts believe the decision of banning foreign crises could lead to a further increased economic crisis.
