It’s been nearly five weeks since the Taliban captured Afghanistan’s capital city of Kabul, and the economic consequences are threatening the banking system in the cash-strapped country.
According to Ajmal Ahmady, former governor of Da Afghanistan Bank, the country’s central bank, approximately $9 billion of the bank’s reserves are held in “safe, liquid assets such as Treasuries and gold.” Ahmady also said assets held at international reserves are expected to be “frozen and not accessible to Taliban.”
Nafay Choudhury is a junior research fellow at St. Catharine’s College at the University of Cambridge and a senior research fellow at the Afghan Institute for Strategic Studies. He recently wrote in Foreign Policy about Afghanistan’s informal money exchange market and how its role in the economy could change with the new regime.
“Given the instability in the country, money exchangers are going to…