Afghanistan government faces severe economic crisis after US froze $9 billion reserves

Shares
Afghanistan government faces severe economic crisis after US froze $9 billion reserves

KABUL – Afghanistan's central bank announced to auction $10 million on sale for banks and foreign exchange dealers on Tuesday in order to arrest the declining value of currency.

The economy of war-torn has been witnessing freefall since the international community seized support to Afghanistan after the Taliban seized control of Kabul in mid-August. The banking system has also announced weekly withdrawal limits to avoid the collapse.

The United States has frozen around $9 billion reserves of the Afghanistan’ central bank held outside the country, despite calls from different countries to release the reserves so Taliban-led government could avert the looming humanitarian crisis.

A money exchanger told Reuters that the afghani has dropped to 93.08 against dollar as compared to 91.20 four days ago.

The central bank has invited eligible banks and foreign exchange dealers to participate in the auction.

"We assure our esteemed compatriots that the functioning of the country's banking system will soon return to normal and that the stability of the afghani will be maintained," the central bank said in an announcement.