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Taliban ban use of foreign currency in Afghanistan -spokesman -Breaking

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© Reuters. FILE PHOTO – An Afghan currency dealer inspects banknotes before a man in Kabul on October 24, 2021. REUTERS/Stringer/File Photo

Kabul (Reuters – The Taliban have announced a ban on Afghanistan’s currency use on Tuesday. It is a step sure to further disrupt an economy already at risk due to withdrawal of all international assistance.

After two explosions in Kabul, gunmen stormed Afghanistan’s largest military hospital.

The Taliban stated in a statement to journalists that the economic condition and national interests of Afghanistan require all Afghans to trade in Afghan currency.

Afghanistan’s currency is heavily dependent on U.S. dollar, and border regions rely on the currencies of neighboring countries like Pakistan.

As the nation is facing a crisis of cash, starvation, and new immigration issues due to drought, the Taliban government demands that billions of dollars be released from the central bank.

Afghanistan held billions of dollars worth assets abroad with the U.S. Federal Reserve. But, this money was frozen when the Islamist Taliban overthrew the Western-backed government in September.

After the U.S. and other international donors moved on, many grants had to be withdrawn that would have funded three quarters public expenditures.

According to the finance ministry, it collected approximately 400 million Afghanis per day ($4.4 million).

While Western countries want to avoid a humanitarian crisis in Afghanistan they refuse to recognise the Taliban government.

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