On Tuesday, Afghanistan’s central bank announced a $10 million auction for banks and foreign exchange traders in effort to stem the currency’s decline.
Since the international community withdrew support for Afghanistan when the Taliban gained control of Kabul in mid-August, the country’s economy has been in freefall. To avoid a meltdown, the financial sector has imposed weekly withdrawal limitations.
Despite demands from several countries to release the funds so the Taliban-led government might avert a humanitarian calamity, the US has frozen about $9 billion in central bank reserves held outside of Afghanistan.
