The Taliban has declared a total ban on the use of foreign currencies on Tuesday, in a move that could weigh on an economy already struggling, due to the withdrawal of international financial support.
After the Taliban seized control of the country in August, billions of dollars of Afghanistans overseas were frozen by the Federal Reserve and Central banks in Europe. The Taliban are said to be pushing for the release of the billions, hence for the ban of usage of dollars in the country.
The Taliban spokesperson Zabihullah Mujahed, has ordered the public, from shopkeepers to businessmen to conduct all trade in Afghani currency. Dollars are often used for trade-in areas bordering Afghanistan’s neighbors such as Pakistan.
This comes hours after a militant hospital on Central Kabul was attacked. At least 25 people were reported killed and more than 50 people wounded on the attack, in which two heavy blasts were followed by an assault by gunmen.
The country is said to be suffering from a severe drought, which has ruined much of its wheat crop and sent prices soaring.
However, although Western powers have said that they want to avoid a humanitarian disaster in Afghanistan, they have refused to officially recognize the Taliban government.