Taliban face financial crisis without access to foreign reserves

Analysis: As the US freezes Afghan reserves and Germany halts aid, the new rulers may find they are far short of what is required to govern

Afghanistan’s new Taliban rulers are likely to face a rapidly developing financial crisis, with foreign currency reserves largely unreachable and western aid donors – who fund the country’s institutions by about 75% – already cutting off or threatening to cut payments.

While the hardline Islamist group has moved in recent years to become more independent of outside financial supporters including Iran, Pakistan and wealthy donors in the Gulf, its financial flows – amounting to $1.6bn (£1.2bn) last year – are far short of what it will require to govern.

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from The Guardian https://ift.tt/3AP5oMc
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