February 1, 2023

Raven Tribune

Complete News World

Locals fear violence: Afghan banks run out of money

Those inside are afraid of violence
Money has run out in the banks of Afghanistan

Since the Taliban came to power in Afghanistan, long queues in front of banks have continued to form. People are trying to get their savings, but locals warn that money and dollars are now in short supply. Failure to pay US payments could lead to a collapse.

Dollars have run out in Afghan banks. Three people familiar with the process said they would be forced to close their doors to customers if the new Taliban government did not release the money soon. “We only have cash flow for a few days,” said one of those who wished to remain anonymous. “If the government does not respond immediately to the situation, there will be protests and violence.”

The country’s already weakened economy is in danger of running out of money. It depends on the hundreds of millions of dollars that the United States has so far paid to the central bank in Kabul, which was then shipped to Afghanistan via banks. A month after the Taliban seized the capital, bankers fear that fewer dollars will increase food and electricity costs. This makes it very difficult to finance imports.

Although the money shortage has been going on for several weeks, banks have repeatedly raised concerns with the new government and the central bank over the past few days, two people familiar with the matter said. Due to the onslaught of savings, financial institutions have already reduced their offers and set a weekly withdrawal limit of $ 200. Long queues continue to form in front of branches as people try to get money.

The cash crunch is stopping the flow of goods

The current governor of the central bank said on his website that the situation was stable. “Banks are completely safe,” he said. Commercial banks usually hold ten percent of their capital in cash – in Afghanistan, it is 50 percent. However, the central bank urged citizens to use the local currency. He also released a photo of cash in millions of dollars and gold nuggets seized from former government officials.

Foreign audiences meanwhile paint a dark picture. “The liquidity crisis has disrupted supply chains and halted the flow of money and goods,” he warns, adding that the economy could shrink by a third if the bank manages the crisis. “Many companies are unable to pay their suppliers.” On the other hand, NGOs are unable to pay the salaries of their employees.

According to Ajmal Ahmadi, a former central bank governor who fled abroad, nearly $ 10 billion in currency reserves are stored abroad. The Russian embassy in Kabul said ousted President Ashraf Ghani fled the country with four cars and a helicopter full of money, but had to leave some money because it did not fit into the trunk yet, the RIA news agency reported. . Kani refuses to take the money.

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