Since Saturday, August 14, in the wake of the fall of Kabul, residents have been rushing to withdraw their deposits to banks and ATMs. Without success. At sunrise on Sunday, just hours before the capital collapse, endless lines formed in front of banking institutions, which stopped distributing money to account holders. It was later closed. And the Western Union, which handles transfers from abroad, is no longer active.
The local economy works mainly through payments. But for now, the daily life of the people in Afghanistan has not turned upside down after the counters were closed. “Only those who have traveled abroad or live there today regret that the assets in the banks of Afghanistan may be lost forever.”Ahmed (nickname), explains, was contacted by phone in Kabul. A businessman does not trust Afghan financial institutions, ‘The situation is uncertain’.
But with the financial system almost completely paralyzed, how long will the government last? International funding for Afghanistan is drying up one by one. International aid, which contributes 42% to GDP, has been largely halted, the International Monetary Fund has frozen its payments and US officials have blocked dollar transfers.
Until then, the country had received weekly dollars in remittances from the United States, the Reserve Bank of Afghanistan, and the DAB. Shortly before the fall of Kabul, the US government finally stopped sending stamped boards of green coins. “Friday [13 août]In While I was expecting a call on Sunday when Kabul fell, I got a call that dollars would no longer be sent.In Description by Ajmal Ahmadi on Twitter, The acting governor of the DAP who fled the country on a military plane on Sunday the 15th.
“Sand in Gears”
However, Warren Coates, an American who worked as a consultant for the DAB from 2002 to 2015, explains that these dollars are essential to the functioning of the Afghan economy. Every week, the central bank organizes auctions of dollars against the local Afghan currency. Currency exchange offices from all over the country come here for stock. For example, American money is sent to the provinces, used to finance trade with neighboring countries – and to protect the savings of wealthy residents.
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