Taliban ban US dollars in Afghan economy amid cash crunch

Bloomberg

The Taliban government has banned the use of foreign currencies in Afghanistan in a surprise move that could weigh on an economy struggling with a cash crunch and further isolate the country.
The move came as the Taliban were pushing for the release of billions of dollars of reserves overseas, which was frozen by the US and its Western allies since the group swept into the power in August.
Without these reserves, the central bank has struggled to maintain flows of dollars into the economy.
The government has ordered the public, from shopkeepers to businessmen, to conduct all trade in Afghani currency for the sake of national interests and to help the economic situation, Taliban spokesman Zabihullah Mujahed said.
“The use of foreign currencies has negative effects on the country’s economy,” he said in a statement. “Violators will be dealt with legally.”
It is unclear how the Taliban will enforce this ruling given that Afghanistan’s economy has been propped by US dollars since America invaded
in 2001 following the 9/11
attacks.
Two-thirds of Afghan banks’ deposits and half of the country’s national loans are in US dollars.