Wed 03 November 2021:
The Taliban have declared a complete ban on the use of foreign money in Afghanistan, a decision that is likely to further devastate an economy already reeling from the abrupt withdrawal of Western support following the group’s takeover.
“The Islamic Emirate instructs all citizens, shopkeepers, traders, businessmen and the general public to … conduct all transactions in Afghanis and strictly refrain from using foreign currency,” the Taliban said in a statement posted online by spokesperson Zabihullah Mujahid.
“Anyone violating this order will face legal action,” the statement said.
The use of US dollars is widespread in Afghanistan’s markets, while border areas use the currency of neighbouring countries such as Pakistan for trade.
As the drought-stricken country faces a cash crunch, mass famine, and a fresh migration catastrophe, the Taliban’s government is demanding for the release of billions of dollars in central bank reserves.
Afghanistan’s former Western-backed government had parked billions of dollars in assets with the Federal Reserve of the United States and other European central banks.
However, once the Taliban seized power in August, the United States, the World Bank, and the International Monetary Fund (IMF) chose to deny Afghanistan access to more than $9.5 billion in assets and loans.
The decision has had a devastating effect on Afghanistan’s healthcare and other sectors, all of which are struggling to continue operations amid cutbacks to international aid.
The World Food Programme has said some 22.8 million people – more than half of Afghanistan’s 39 million population – were facing acute food insecurity and “marching to starvation”, compared with 14 million just two months ago.
Even before the Taliban took control of Afghanistan, the country was experiencing a severe food crisis, exacerbated by climate change.
(with agency)
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