— has plunged the group into the realities of governance. Sporadic protests against it have broken out across the country by a population that has grown accustomed to smartphones, civil liberties, education and other freedoms that came with years of American occupation.
But the more immediate problem is that Afghanistan, one of the world’s poorest countries, is a cash economy, with only 10% of the adult population holding a bank account, according to a 2018 World Bank report. The local currency, the afghani, is propped up by regular bulk shipments of U.S. dollars from abroad every few weeks to Afghanistan’s central bank.
“The main reason for foreign exchange stability has been that we’ve been receiving a constant, pretty large sum of money,” he said. “It’s imperative for stakeholders in Afghanistan to recognize the situation.” Afghans have little recourse to access other sources of dollars. Western Union, an important lifeline for Afghans to get money from abroad, announced that it was suspending services until further notice. MoneyGram, another service, made no such announcement but appears to have stopped working in Afghanistan as well. Last year, remittances to Afghanistan totaled some $788.9 million, nearly 4% of the country’s gross domestic product.
When the Taliban finds out that their vast fortune is in another castle.
good
Afghans will suffer from hunger and destitution. America should use carrots and sticks against the Taliban to ensure its strategic interests in Afghanistan.
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Source: WSJ - 🏆 98. / 63 Read more »
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