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PublishDate: Wednesday, November 3, 2021 09:32

IEA ban use of foreign currency in Afghanistan

The Islamic Emirate of Afghanistan [IEA] announced a complete ban on the use of foreign currency in Afghanistan on Tuesday, a move sure to cause further disruption to an economy pushed to the brink of collapse by the abrupt withdrawal of international support.

Afghan Voice Agency (AVA)_The surprise move 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 at the site in central Kabul.

“The economic situation and national interests in the country require that all Afghans use Afghan currency in their every trade,” the IEA said in a statement shared with by their deputy minister .

The use of U.S. dollars is widespread in Afghanistan’s markets, while border areas use the currency of neighbouring countries such as Pakistan for trade.

The IEA government is pressing for the release of billions of dollars of central bank reserves as the drought-stricken nation faces a cash crunch, mass starvation and a new .

Afghanistan parked billions of dollars in assets overseas with the U.S. Federal Reserve and other in Europe, but that money has been frozen since the IEA ousted the Western-backed government in August.

The departure of U.S.-led forces and many left the country without grants that financed three quarters of public spending.

The finance ministry said it had a daily tax take of roughly 400 million Afghanis ($4.4 million).

Although Western powers want to avert a in Afghanistan, they have refused to officially recognise the IEA government.

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