Afghanistan: Taliban authorities ban use of foreign currencies nationwide as of Nov. 3

Event

Taliban officials have banned the use of foreign currencies for domestic transactions nationwide as of Nov. 3. According to a press statement, the measure requires "all Afghans use the Afghani currency in every transaction." It is not immediately clear whether the rule applies to foreigners and foreign-owned entities. The Taliban stated it would take legal action against violators of the directive, though the capacity to enforce the foreign currency ban is unclear.

Business disruptions are possible nationwide as the policy could exacerbate a cash shortage in the country. Long lines may occur at banks as civilians attempt to withdraw money. Foreign currency is widely used in the country, and locals may protest the new rule, especially in urban centers. Increased security and localized transport and business disruptions are possible near any demonstrations. Clashes are possible if large gatherings occur.

Advice

Plan for possible business disruptions. Avoid any demonstrations as a precaution. Heed all official instructions.