The Taliban has revealed it is banning the use of foreign currencies in Afghanistan

The move to ban the use of foreign currencies such as the US dollar could further disrupt the Afghan economy which is already on the brink of collapse.

Afghanistan’s economy is struggling due to the withdrawal of international financial support after the Taliban took control.

The US dollar has been used widely in Afghanistan’s markets

Currencies are also often used for trade in areas bordering Afghanistan’s neighbours such as Pakistan.

“The Islamic Emirate instructs all citizens, shopkeepers, traders, businessmen and the general public to henceforth conduct all transactions in Afghanis and strictly refrain from using foreign currency,” Taliban spokesman Zabihullah Mujahid said in a statement posted on Twitter.

“Anyone violating this order will face legal action,” the statement said

Following the takeover of Afghanistan by Taliban in August, billions of dollars of the country’s overseas assets were frozen by the US Federal Reserve and central banks in Europe.

The militant group, which is now governing Afghanistan has called for the release of country’s assets that are being held overseas as the nation faces a severe cash crunch.

Afghanistan has also been hit by the exodus of foreign aid. Grants from overseas previously financed three quarters of its public spending.