The Taliban announced on Tuesday that they would ban the use of foreign currency in Afghanistan.
“The country’s economic situation and national interests demand that all Afghans use Afghan currency in every trade,” the Taliban said in a statement, according to Reuters.
Areas along the border trade in the currencies of neighboring countries like Pakistan, and US dollars are widely used in Afghan markets, Reuters reported.
Grants from international donors once funded about 75% of government spending in Afghanistan, the news service added, but following the withdrawal of US-led forces and other foreign interests this summer, that money has dried up. .
Billions of dollars in Afghan assets have been stored under the control of the US Federal Reserve and central banks in Europe, according to Reuters. These assets have been frozen since the Taliban took control of Kabul in August; with the nation struggling financially amid drought, famine and migration issues, the Taliban are struggling to access money.
The unexpected announcement of the use of strictly Afghan currency came just hours after another crisis: a shooting in Afghanistan’s largest military hospital that left 25 dead and 50 injured. In addition to gunfire, there were two loud explosions at the incident site in Kabul.
The United States and other Western powers have refused to officially recognize the Taliban government, a move that the Taliban says could cause problems “for the world.”
“Our message to America is that if the non-recognition continues, the Afghan problems continue, it is the problem of the region and could become a problem for the world,” the Taliban spokesman said last week. , Zabihullah Mujahid.