Afghanistan: Taliban government enacts new foreign currency measures as of April 7

Event

As of April 7, the Bank of Afghanistan has increased the weekly limit on withdrawals from private banks, enabling individual depositors to withdraw up to 50,000 Afghanis (USD 578) per week with a monthly limit of 200,000 Afghanis (USD 2,313). Additionally, individuals with bank accounts in US currency will now be able to withdraw up to USD 600 per week with a limit of USD 1,200 per month.

Corporate account holders will be subject to a 5 percent withdrawal limit of the total amount in the account up to a maximum of USD 40,000 per month. Bank guarantees for small- and medium-sized enterprises will not exceed 300,000 Afghanis (USD 3,469).

Context

The latest regulatory announcement could indicate an attempt to improve the business environment in Afghanistan as the Taliban continue 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 in 2021. 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 diplomatic missions.