Taliban Ban U.S. Dollars in Afghan Economy Amid Cash Crunch
- ‘Violators will be dealt with legally,’ group’s spokesman says
- Unclear how Taliban will enforce foreign currency ban
Money changers sit at the currency exchange market along a road in Kandahar in September.
Photographer: Javed Tanveer/AFP/Getty Images
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The Taliban government has banned the use of foreign currencies in Afghanistan in a surprise move that could weigh on an economy struggling with a cash crunch and further isolate the country.
The move came as the Taliban were pushing for the release of billions of dollars of reserves overseas, which was frozen by the U.S. and its Western allies since the group swept into the power in August. Without these reserves, the central bank has struggled to maintain flows of dollars into the economy.