Afghanistan’s tumbling currency compounds economic crisis
3 years ago

Afghanistan’s tumbling currency compounds economic crisis

Al Jazeera  

The international community froze billions of dollars worth of Afghan assets abroad and stopped all international funding to the country after the Taliban takeover. Afghanistan’s economy was already troubled when the international community froze billions of dollars worth of Afghanistan’s assets abroad and stopped all international funding to the country after the Taliban seized power in mid-August amid a chaotic US and NATO troop withdrawal. Afghanistan was also slated to access about $450m on August 23 from the International Monetary Fund, but the IMF blocked the release because of a “lack of clarity” about the country’s new rulers. Khan Afzal Hadawal, former acting governor of Afghanistan’s central bank, said the sanctions on the Taliban and the freezing of Afghanistan’s reserve funds “have put the country’s aid-dependent economy on the verge of full economic collapse, leading to historic depreciation of currency”. “We do understand the concerns of the international community but there are mechanisms can help to manage the crisis and to assist the Afghan people.” According to the United Nations’ World Food Programme, 22.8 million of Afghanistan’s 38 million people already face acute food shortages, and malnutrition in the country is increasing.

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History of this topic

The world should not forget Afghanistan
1 week, 5 days ago

The world should not forget Afghanistan

Al Jazeera  

In 2024, Afghanistan’s multiple crises worsened, and yet little help was extended to it. The multiple crises that plague Afghanistan have barely registered in international media headlines, and yet they persist. Reports show that Afghanistan has the fourth largest number of people facing severe hunger and food shortages. The international community must recognise that the plight of the Afghan people …

Afghan economy shows modest signs of growth but recovery remains fragile, says World Bank
1 month ago

Afghan economy shows modest signs of growth but recovery remains fragile, says World Bank

Associated Press  

Afghanistan’s economy is showing modest signs of growth after two years of severe contraction, the World Bank said. In its latest development update issued late Wednesday, the financial institution said modest GDP growth of 2.7% was driven by private consumption. Faris Hadad-Zervos, the World Bank’s country director for Afghanistan, said long-term growth prospects required tapping into the substantial potential of …

Taliban-ruled Afghanistan's currency becomes world's best performer this quarter
1 year, 3 months ago

Taliban-ruled Afghanistan's currency becomes world's best performer this quarter

India Today  

Afghanistan's currency, the Afghani, has unexpectedly claimed the title of the world's best-performing currency during the September quarter, as reported by Bloomberg's data analysis. Afghanistan's isolation from the global financial system due to international sanctions is highlighted in a recent World Bank report. The United Nations estimates that Afghanistan requires approximately $3.2 billion in assistance for this year, yet only …

'World's Best Performing Currency': Afghanistan's currency surges amid unique circumstances
1 year, 3 months ago

'World's Best Performing Currency': Afghanistan's currency surges amid unique circumstances

Firstpost  

Currency controls, combined with cash inflows and remittances, have boosted the afghani by approximately 9% this quarter, surpassing the 3% gain of the Colombian peso. However, this rise in the afghani’s value hides the ongoing turmoil within Afghanistan, as the country remains largely isolated from the global financial system due to sanctions. Resource Investment Amid Financial Challenges Despite its financial …

Afghanistan’s money is crumbling to pieces, just like its economy
2 years, 3 months ago

Afghanistan’s money is crumbling to pieces, just like its economy

LA Times  

These days, when a wand-like wave of a phone or credit card gets you a cup of coffee or more, it’s easy to forget what actual bills look like — and the abuse they receive in an average five-year life span. “That one even the central bank won’t take,” he said, shaking his head before putting it up to the …

Photos: Afghans paying the price for peace since Taliban takeover
2 years, 5 months ago

Photos: Afghans paying the price for peace since Taliban takeover

Al Jazeera  

Rows of mud huts put together in a rush. It is also here that one can meet people hit the hardest by the sudden economic collapse which followed the end of the war in Afghanistan – the highest price that most Afghans have been paying for peace. The international community felt it was left with few options but to cut …

Sanctions farce: The U.S.' move to steal the Afghan people's money
2 years, 9 months ago

Sanctions farce: The U.S.' move to steal the Afghan people's money

The Hindu  

Even as the events in Ukraine were reaching a critical stage, the United States thought it was an opportune moment to further turn the financial screws on Afghanistan, a country devastated by two decades of U.S. occupation and war and where a humanitarian disaster on a gargantuan scale is unfolding. The decision to release only part of the funds will …

UN envoy: Afghan failing economy heads to `irreversibility’
2 years, 10 months ago

UN envoy: Afghan failing economy heads to `irreversibility’

Associated Press  

UNITED NATIONS — The U.N. special envoy for Afghanistan said Wednesday the international community hasn’t done enough to revive the country’s economy as it heads toward “a point of irreversibility,” while the U.S. said it is the responsibility of the ruling Taliban to create the conditions for economic stability. The envoy, Deborah Lyons, told the U.N. Security Council that Afghanistan …

Explained: Why efforts to help Afghanistan is falling short
2 years, 11 months ago

Explained: Why efforts to help Afghanistan is falling short

Firstpost  

Aid groups and international agencies estimate about 23 million people, more than half the country, face severe hunger and nearly 9 million are on the brink of starvation Washington: As winter deepens, a grim situation in Afghanistan is getting worse. President Joe Biden said the US would continue to provide humanitarian aid to Afghanistan after the withdrawal, which was set …

The Afghan economy is a falling house of cards. Here are 5 steps to rebuild it
2 years, 11 months ago

The Afghan economy is a falling house of cards. Here are 5 steps to rebuild it

CNN  

Editor’s Note: David Miliband is the president and CEO of the International Rescue Committee, a global humanitarian aid organization. CNN — President Joe Biden said in August that the US military withdrawal from Afghanistan would not signal the end of US support to the Afghan people, pledging active humanitarian support and diplomatic engagement. The economic withdrawal following the military withdrawal …

UN chief warns millions of Afghans are on ‘verge of death’
2 years, 11 months ago

UN chief warns millions of Afghans are on ‘verge of death’

Al Jazeera  

Antonio Guterres pleads with US, World Bank to unfreeze Afghanistan’s funds to avert an economic and social collapse. The United Nations chief has warned that millions of Afghans are on the “verge of death”, urging the international community to fund the UN’s $5bn humanitarian appeal, release Afghanistan’s frozen assets and jump-start its banking system to avert economic and social collapse. …

Afghan currency slides, prices surge as economy worsens
3 years ago

Afghan currency slides, prices surge as economy worsens

Associated Press  

HERAT, Afghanistan — The value of Afghanistan’s currency is tumbling, exacerbating an already severe economic crisis and deepening poverty in a country where more than half the population already doesn’t have enough to eat. Afghanistan was also slated to access about $450 million on Aug. 23 from the International Monetary Fund, but the IMF blocked the release because of a …

Value of Afghanistan's currency climbs against dollar
3 years ago

Value of Afghanistan's currency climbs against dollar

India TV News  

Highlights The US dollar has depreciated against the afghani, Afghanistan's national currency. Value of $1 has dropped from 130 afghani to 102 afghani following a joint meeting of govt officials. The US dollar has depreciated against the afghani, Afghanistan's national currency, from 130 afghani days ago to 95 afghani on Thursday, reports said. Officials of Sara-i-Shahzada, the largest money changers …

UN: Afghanistan’s economy is collapsing `before our eyes’
3 years, 1 month ago

UN: Afghanistan’s economy is collapsing `before our eyes’

Associated Press  

UNITED NATIONS — The U.N. humanitarian chief warned that Afghanistan’s economic collapse “is happening before our eyes” and urged the international community to take action to stop “the freefall” before it leads to more deaths. Martin Griffiths said in an interview with The Associated Press on Thursday that donor nations need to agree that in addition to emergency humanitarian aid …

Aid official: Afghanistan’s crises get ‘progressively worse’
3 years, 1 month ago

Aid official: Afghanistan’s crises get ‘progressively worse’

Associated Press  

KABUL, Afghanistan — Afghanistan is being hit by multiple crises that are “progressively getting worse,” with drought, economic collapse and displacement all pushing the population into catastrophic hunger, a senior international aid official said Thursday. “Now it’s the converging of all those factors that is creating a major humanitarian crisis, which is progressively getting worse,” Matheou said. With the cut-off …

Afghanistan ‘on the brink of catastrophe’: UN envoy
3 years, 1 month ago

Afghanistan ‘on the brink of catastrophe’: UN envoy

Al Jazeera  

UN special representative to Afghanistan urges the international community to find ways to provide financial support to the Afghan people. The UN envoy for Afghanistan says the country is “on the brink of a humanitarian catastrophe”, urging the international community to find ways to provide financial support to the Afghan people, who “feel abandoned”. Humanitarian catastrophe ‘is preventable’ Lyons added …

Economic crisis could fuel extremism in Afghanistan: UN
3 years, 1 month ago

Economic crisis could fuel extremism in Afghanistan: UN

India Today  

Afghanistan's deep economic crisis threatens to raise the "risk of extremism" in the region, a senior UN official warned on Wednesday. UN envoy to Afghanistan Deborah Lyons told the UN Security Council that with the local economy in tatters, illicit drugs, arms flows and human trafficking are likely to surge. "The ongoing paralysis of the banking sector will push more …

Amid economic turmoil, people in Afghanistan struggle to make ends meet
3 years, 2 months ago

Amid economic turmoil, people in Afghanistan struggle to make ends meet

The Hindu  

Since the Taliban seized power in Afghanistan in mid-August, the conflict-stricken nation has been dealing not only with political turmoil but also a severe economic crisis and increasing poverty. Some 8.7 million people are "one step away from starvation," Mary-Ellen McGroarty, head of the World Food Program in Afghanistan said in October. "Afghanistan's economic growth was slow up to August …

Taliban bans the use of foreign currency across Afghanistan
3 years, 2 months ago

Taliban bans the use of foreign currency across Afghanistan

Al Jazeera  

The Taliban says those who continue to trade using foreign currency will face legal action. The Taliban has announced a complete ban on the use of foreign currency in Afghanistan, a move certain to cause further disruption to an economy pushed to the brink of collapse by the abrupt withdrawal of international support in the wake of the group’s takeover …

As US freezes funds, a harsh winter awaits cash-strapped Afghans
3 years, 2 months ago

As US freezes funds, a harsh winter awaits cash-strapped Afghans

Al Jazeera  

With $9.5bn in assets and loans frozen and limits imposed on bank withdrawals, a humanitarian crisis unfolds in Afghanistan. The top watchdog report says that over the 20-year US occupation, Washington spent $146bn in Afghanistan’s reconstruction, including $89bn on training and supporting the country’s National Security Forces “which no longer exists”. Limit on bank withdrawals However, with the harsh winter …

Hunger forces Afghans to sell young daughters into marriage
3 years, 2 months ago

Hunger forces Afghans to sell young daughters into marriage

India Today  

Afghanistan is on the brink of one of the world's worst humanitarian crises, UN agencies warned Monday, with more than half the country facing "acute" food shortages. "This winter, millions of Afghans will be forced to choose between migration and starvation unless we can step up our life-saving assistance," said David Beasley, executive director of the World Food Programme. "Afghanistan …

The economy on the brink, Taliban rely on former technocrats
3 years, 2 months ago

The economy on the brink, Taliban rely on former technocrats

Associated Press  

KABUL, Afghanistan — When the Taliban swept into power, they found Afghanistan’s economy fast approaching the brink and were faced with harrowing predictions of growing poverty and hunger. Four employees from financial institutions told The Associated Press how the Taliban commanded bureaucrats from the previous government’s Finance Ministry, central bank and other state-owned banks to return to work. In the …

Is Afghanistan’s economy unravelling under the Taliban?
3 years, 3 months ago

Is Afghanistan’s economy unravelling under the Taliban?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The problem now is our empty stomachs.” Across the …

Afghanistan on verge of economic collapse as cash crisis continues
3 years, 3 months ago

Afghanistan on verge of economic collapse as cash crisis continues

India TV News  

Afghanistan's already weak economy has taken a nosedive after the Taliban's takeover of Kabul last month, according to multiple reports.Soon after the Taliban's siege of Kabul on August 15, foreign assistance was immediately frozen. Besides this, the US stopped USD 9.4 billion in reserves to the country's central bank, The New York Post reported.Moreover, the International Monetary Fund and World …

With foreign funds frozen, Afghan aid groups are in limbo — and Afghans are in crisis
3 years, 3 months ago

With foreign funds frozen, Afghan aid groups are in limbo — and Afghans are in crisis

LA Times  

Money exchangers negotiate in the Sarai Shahzadah, Kabul’s exchange market, where the U.S. dollar is a common trading currency. “It’s definitely still possible to meet the basic needs of Afghans without rewarding the government with broader economic assistance and diplomatic recognition,” said Lisa Curtis, former South and Central Asia director of the U.S. National Security Council. “It’s probably not a …

Threat of rising poverty in Afghanistan could have catastrophic consequences for regional stability: EAM
3 years, 3 months ago

Threat of rising poverty in Afghanistan could have catastrophic consequences for regional stability: EAM

India TV News  

External Affairs Minister S Jaishankar, during a United Nations High-Level Meeting on the Humanitarian Situation in Afghanistan on Monday, said that India is monitoring developments with understandable concern, adding that the war-torn country is passing through a critical and challenging phase. He added that the UNDP recently assessed that there is an imminent threat of poverty levels rising from 72% …

Afghans sell possessions amid cash crunch, looming crisis
3 years, 3 months ago

Afghans sell possessions amid cash crunch, looming crisis

Al Jazeera  

The Taliban takeover, and the resulting cut in international funds, has exacerbated an already dire economic situation. “We bought these carpets for 48,000 Afghanis, but now I can’t get more than 5,000 Afghanis for all of them,” Shukrullah says, as people rummage through the goods on display. Over the last 20 years, 40 percent of Afghanistan’s GDP came from international …

UN warns Afghanistan at risk of ‘total breakdown’
3 years, 4 months ago

UN warns Afghanistan at risk of ‘total breakdown’

Al Jazeera  

UN calls for release of frozen assets to avoid economic and social collapse after UNDP said Afghanistan faces staggering poverty. The United Nations has warned that Afghanistan is at risk of “total breakdown” of the international community does not find a way to keep money flowing into Afghanistan despite concerns over the Taliban government. But the UN special envoy on …

Afghanistan on the brink of universal poverty: UN
3 years, 4 months ago

Afghanistan on the brink of universal poverty: UN

Al Jazeera  

The UNDP says prolonged drought, the COVID-19 pandemic and political upheaval could cause Afghanistan’s poverty rate to soar to 97 percent by mid-2022. About 97 percent of Afghanistan’s population may sink below the poverty line unless the country’s political and economic crises are addressed, the United Nations has warned. In a report released on Thursday, the United Nations Development Programme …

Afghans face hunger crisis, adding to Taliban’s challenges
3 years, 4 months ago

Afghans face hunger crisis, adding to Taliban’s challenges

Associated Press  

KABUL, Afghanistan — The United Nations’ stockpiles of food in Afghanistan could run out this month, a senior official warned Wednesday, threatening to add a hunger crisis to the challenges facing the country’s new Taliban rulers as they try to restore stability after decades of war. The president of the United Nations Security Council said Wednesday that “the real litmus …

Afghan central bank board member asks Biden, IMF to release funds
3 years, 4 months ago

Afghan central bank board member asks Biden, IMF to release funds

Al Jazeera  

The US and the IMF should provide the Taliban with limited monetary access to prevent economic collapse, Shah Mehrabi says. A senior board member of Afghanistan’s central bank is urging the US Treasury and the International Monetary Fund to take steps to provide the Taliban-led government limited access to the country’s reserves to avoid economic disaster. US President Joe Biden’s …

Afghanistan crisis: Indian trade worth $1.5 billion stops abruptly as Afghans stare at bleak future
3 years, 4 months ago

Afghanistan crisis: Indian trade worth $1.5 billion stops abruptly as Afghans stare at bleak future

India Today  

As lakhs flee Afghanistan and the Indian government evacuates nationals as well as refugees, the future of India-Afghanistan trade, which is worth more than a billion dollars, hangs in the balance. $1.5 billion trade at stake Over the past 20 years, India's bilateral trade with Afghanistan has grown by leaps and bounds. $3 billion trade in 20 years Since 2001, …

Taliban took Afghanistan but face cash squeeze
3 years, 4 months ago

Taliban took Afghanistan but face cash squeeze

Associated Press  

WASHINGTON — The Taliban face a frontal challenge in cementing control of Afghanistan: Money. But Cordesman added, “To have a pressure point, you have to be willing to negotiate in ways the Taliban can accept.” As of now, the Taliban government cannot access almost all of the Afghanistan central bank’s $9 billion in reserves, most of which is held by …

Former Afghan central banker predicts economic hardship for the Taliban regime
3 years, 4 months ago

Former Afghan central banker predicts economic hardship for the Taliban regime

CNN  

New York CNN Business — Soaring food prices. “Afghanistan unfortunately was already facing multiple crises,” Ajmal Ahmady, who led the Afghan central bank before escaping Kabul on Sunday, told CNN, pointing to Covid, conflict and drought. “And for the people of Afghanistan, that is going to be very difficult to deal with.” Ahmady predicted the Taliban will face trouble governing …

What’s next for Afghanistan’s economy under Taliban rule?
3 years, 4 months ago

What’s next for Afghanistan’s economy under Taliban rule?

Al Jazeera  

Billions of dollars of Afghanistan’s financial reserves have been frozen in the US as international aid also put on hold. The United States has frozen $9.5bn of Afghanistan’s international reserves held in its central bank. And the International Monetary Fund has suspended payment of more than $450m for Afghanistan as part of a coronavirus relief programme. Presenter: Mohammed Jamjoom Guests: …

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