Taliban announces complete ban on use of foreign currency in Afghanistan

The Taliban on November 2, 2021, announced a complete ban on the use of foreign currency in Afghanistan. The move will make sure to cause further disruption to an economy that has been pushed to the brink of collapse by the abrupt withdrawal of international support.

The surprise move by the militant group came hours after at least 25 people were killed and more than 50 wounded when gunmen attacked Afghanistan’s biggest military hospital after two heavy explosions at the site in Central Kabul.

Taliban ban use of foreign currency in Afghanistan -spokesman https://t.co/ukZ9f1kMNu pic.twitter.com/ComaDavs4G

— Reuters (@Reuters) November 2, 2021

Afghans to use Afghan currency

Taliban in a statement, shared with the journalists by one of their spokesperson, said that the economic situation and national interests in the country required that all the Afghans use Afghan currency in their every trade.

The use of US dollars has been widespread in the markets of Afghanistan, while the border areas use the currency of the neighbouring countries such as Pakistan for trade.

Taliban pressing for release of millions of dollars

The Taliban government has been pressing for the release of billions of dollars of the Central Bank reserves as the drought-stricken country faces a cash crunch, new migration crisis, and cash crunch.

Afghanistan has parked billions of dollars in assets overseas with various central banks in Europe and the US Federal Reserve. However, that has money has been frozen since the Islamist Taliban ousted the Western-backed government in Afghanistan in August 2021.