Afghan banks are running out of currency as cash squeeze tightens

Banks in Afghanistan are running out of money following the Taliban’s recent rule to government

Banking firms are now pleading with the Taliban to release more funds otherwise they’ll be forced to close their doors.

The Afghan cash squeeze threatens to upend the country’s already battered economy which has been largely dependent on hundreds of millions of dollars shipped by the United States to the central bank in Kabul which then makes its way to the Afghani people through banks.

The Taliban has been in charge of the nation for a month and many fear the cash squeeze will lead to inflation.

Bankers fear fewer dollars could inflate the cost of food or electricity and make it harder to afford imports, spelling further misery for Afghans.

Although the cash crunch has lasted weeks, the country’s banks have in recent days repeatedly underlined their concerns to the new government and central bank according to reports.

Since the fall of the Afghanistan government, banks have already pared back services and imposed weekly $200 payout limits amid a run on savings.

Reports claim that there has been constant long queues outside branches as people try to get hold of dollars.

The hobbling of the central bank, whose foreign reserves were frozen after the Taliban took charge, could also hamper efforts of the international community to support Afghans

Commercial banks have appealed to the central bank in recent days to free up the supply of U.S. currency, however they are pending to receive an answer to those requests.