Although Afghanistan's economy is no stranger to multiple currencies, it is unlikely that the Taliban administration's recent ban on foreign cash will further disrupt the economy
in 2019 as a form of exchange control to boost confidence and demand for a battered currency.
“The government would try to ban that and abolish the use of other currencies and promote AFN and this was the objective before as well.”the afghani to fall, as the central bank could not supply enough dollars to local banks, and for the Taliban to use capital controls to prevent outflows. “So to make sure AFN has a demand and a strength, governments simply ban other foreign currencies and ask its people, traders, businessmen, whoever to have transactions only in the local currency. Now this obviously leads to more demand for this local currency and when there is more demand, there is some relative degree of strength or credibility intact,” Shah says.
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