The Taliban has banned the use of foreign currencies in Afghanistan, a move that could further disrupt an economy on the brink of collapse.
“The economic situation and national interests in the country require that all Afghans use Afghani currency in their every trade,” the Taliban said.
The economy is struggling due to the withdrawal of international financial support after the Taliban took control.
The US dollar has been used widely in Afghanistan’s markets. Dollars are also often used for trade in areas bordering Afghanistan’s neighbours such as Pakistan.
“The Islamic Emirate instructs all citizens, shopkeepers, traders, businessmen and the general public to henceforth conduct all transactions in Afghanis and strictly refrain from using foreign currency,” Taliban spokesman Zabihullah Mujahid said in a statement posted online.
“Anyone violating this order will face legal action,” the statement said. After the Taliban seized control of the country in August, billions of dollars of Afghanistan’s overseas assets were frozen by the US Federal Reserve and central banks in Europe.
“We believe that it’s essential that we maintain our sanctions against the Taliban but at the same time find ways for legitimate humanitarian assistance to get to the Afghan people.
That’s exactly what we’re doing,” Deputy United States Treasury Secretary Wally Adeyemo told the US Senate Banking Committee last month.
The Taliban has called for the release of Afghanistan’s assets that are being held overseas as the nation faces a severe cash crunch.
Afghanistan has also been hit by the exodus of foreign aid. Grants from overseas previously financed three quarters of its public spending.
