Afghan faces cash crunch after US frozen funds
Kabul: Afghanistan has faced an acute cash crunch following the US has seized $9.5 billion dollars Country’s Central Bank.
The decision to frozen cash would cause problems for the Taliban, it would facing a cash crunch and sharp increase in inflation and difficulty in governing the bank, said the acting President of the Central Bank.
President Joe Biden's administration has frozen Afghan central bank reserves kept in the US, the Washington Post reported on Tuesday it roughly around $9.5 billion dollars.
The country's acting central bank chief, Ajmal Ahmady, who fled the capital Kabul as it fell to the Taliban, tweeted on Wednesday that the population could soon face strong inflation as a result of a weaker currency driving up the cost of imports. "This will hurt the poor as food prices increase,"
All most ATM’s in the country running out of cash, people are facing an acute shortage of cash. Panic people have rushed to ATMs for withdrawal of cash and leave the country.
