Home » Afghanistan, the banking system is close to collapse. Panic and queues at the counters

Afghanistan, the banking system is close to collapse. Panic and queues at the counters

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The Afghan banking system is close to collapse: “Huge withdrawals are taking place, most of the banks are down and don’t provide full services.” This was stated to the BBC by Syed Moosa Kaleem Al-Falahi, CEO of the Islamic Bank of Afghanistan, one of the largest credit institutions in the country.

Ever since the Taliban took power following the retreat of international troops, the Afghan financial sector has been in the grip of an “existential crisis” due to the panic that has spread among customers.

Queues at the counters and general alarm: this is the difficult situation at the moment. The Afghan economy is on the brink. According to the World Bank, about 40% of its GDP depends on international aid, but after the arrival of the Taliban in Kabul, the West and the International Monetary Fund have decided to stop the transfer of funds.

This decision, however, always for Al-Falahi – who took refuge in Dubai – could definitively push the Taliban to make agreements with China and Russia. Inflation is quite high and Afghanistan, the country’s currency, is collapsing. The population is increasingly in difficulty, just think that the United Nations World Food Program has warned that only 5% of local families have enough food to eat every single day.

However, the Taliban government expressed its appreciation for the US Treasury Department’s decision to allow government agencies, as well as NGOs and international banks, to facilitate the delivery of food and medicine to Afghanistan.

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