Citing national interests and current economic conditions as major reasons for the unexpected move, Taliban spokesman Zabihullah Mujahid said in a statement that the Islamic Emirate of Afghanistan has completely banned the use of foreign currencies.
Stressing that those violating the new law will be prosecuted, Mujahid said that the Islamic Emirate has instructed all Afghans to strictly refrain from using foreign currency and henceforth conduct all transactions in Afghanis.
While trading in the border areas has long been conducted with the currencies of neighboring nations, US dollars have been widespread currency in Afghanistan’s markets.
Since the Taliban took control of the country, Afghanistan’s shaky economy has been struggling even more due to the withdrawal of international financial support and foreign financial aid that had reportedly financed three quarters of public spending.
The withdrawal occurred in August when the US, the World Bank and IMF blocked Afghanistan’s access to more than $9.5 billion in assets parked with the US Federal Reserve and other central banks in Europe, and also barred Afghanistan from receiving international loans.
Though Taliban are claiming that the use of foreign currencies will have a negative impact on the country’s dire economic situation, it is, on the contrary, expected the foreign currency ban to deepen the economic crisis, possibly causing a cash crunch in Afghanistan followed by mass starvation and a new migration crisis.
The currency ban comes in light of the gunman attack in the Afghanistan’s biggest military hospital in central Kabul that killed at least 25 people and more than 50 were wounded. The attack followed two heavy explosions at the site.
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