The Financial War in Afghanistan

The sudden withdrawal of US troops from Afghanistan received much criticism for the speed and the total cost as well as it brings important financial consequences in the country.

Firstly, US Fed Reserve “locked” around $10 billion in assets, holding them as reserve for the Afghan Central Bank. This means that the Taliban regime would not have access in those reserves and cannot secure financing through the traditional financial system for governing the country.

In parallel, US president, Joe Biden, ordered all the physical money transfers to Afghanistan would stop immediately. The strategy for financial struggle for the Taliban regime could lead to searches for alternate solutions like partnerships with Russia or China.

Some analysts talk about cryptocurrency use in the transactions part but better wait to see….