Afghanistan: Taliban government enacts new foreign currency measures effective Feb. 7

Event

Taliban officials have implemented new restrictions on the use and export of certain currencies effective Feb. 7. The new directives limit the amount of US currency that citizens can export from Afghanistan in cash to USD 500 via land border crossings or USD 5,000 through airports. Penalties for violating the regulation include various prison sentences and fines, depending on the money involved in the infraction. It remains unclear whether non-Afghan citizens will also be subject to the same restrictions and penalties.

At the same time, authorities reiterated a November 2021 mandate that the Afghani be the only currency used in domestic trade and that importing the currencies of other countries in the region is prohibited.

Context

The latest regulatory announcement could indicate an attempt to improve enforcement of Afghanistan's currency policies as the Taliban continues to navigate an economic crisis fueled by international sanctions. Nearly 40 percent of Afghanistan's gross domestic product depended on international aid before the Taliban seized power. The nation's central bank remains without access to the country's USD 9 billion in foreign reserves as human rights concerns continue to prevent diplomatic recognition of the Taliban administration.

Advice

Heed the instructions of authorities. Consult with trusted local advisors concerning the scope and impact of the new regulation before international travel. Maintain contact with your diplomatic mission.