Afghanistan: Residents face difficulties due to central bank's cash withdrawal restriction

As Afghan Central Bank capped the withdrawal limit equivalent of $400 a week, or $1,200 a month, several residents complained facing difficulties in withdrawing their money from the banks, TOLO News reported. While speaking to the local media outlet, residents of Kabul expressed their anger with the Taliban government. The Afghans said they would no longer deposit their money in the banks. Notably, Afghanistan's Central Bank doubled the cap on weekly withdrawals on Wednesday, a day after the Taliban government banned all foreign currency transactions. The decision was taken because of the deteriorating conditions of banks in the war-torn country.

Though the Taliban claimed the decision to ban the foreign currency aimed to stabilize the economy, the residents are not in the mood to convenience with the excuses announced by the extremist group. It also warned that violators to get ready to face the wrath of the legal team. "We used to save our money in the banks, but currently they are not paying us on time. The banks have lost trust among the people, we no longer want to save our money in the banks," Noorullah, a resident of Kabul told TOLO News. It is worth mentioning that Afghanistan's economy revolves around foreign trade, foreign aid and remittances from abroad. Since the Taliban ousted the democratic government in mid-August, the local currency, the afghani, has depreciated.

'Banks in Afghanistan will not be able to provide services'

Notably, the United States froze nearly $9.5 billion in assets belonging to the Central Bank and stopped shipments of cash. It was part of a pressure campaign aimed at getting Afghanistan’s new rulers to respect the rights of women and minorities. Meanwhile, some economists said that if the banking system continues at this rate, the banks will not be able to provide services, which will negatively impact the country's economy, Tolo News reported. "If everyone transfers its money to other countries, what is left? The bank is an economic structure--when we deposit our money in the banks then that is used for investments," said Wahab Qati, an economic analyst, reported TOLO News. Apart from the US response, the Taliban have also been faced with a sharp rise in attacks by its main rival, which also affected the country's already crawling economy to enter its worst phase. 

With inputs from ANI/AP

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