Afghanistan and its economy are slowly collapsing

Afghanistan and its economy are slowly collapsing a few weeks after the last US troops leave. Prices are rising, banks have cut cash withdrawals and it is very difficult for residents to access money. Every Afghan can withdraw only $ 200 a week in cash. There is a risk of extreme poverty. Afghanistan's economy has been heavily dependent on foreign development aid for many decades. But now he's in trouble. Prices have risen by as much as thirty percent in a few weeks. People do not have enough money, they often sell off their households to have money for food. The Bloomberg agency informed about it. Years of foreign aid are evident in Afghanistan even a few weeks after the new regime took office. There are still many US dollars in circulation today, which locals use, for example, to buy goods from abroad. As much as two-thirds of the deposits and about half of the loans provided in the Afghan banking sector are in US dollars. "The entire Afghan economy is heavily dependent on US dollars, " Shah Mehrabi, a member of the Afghan Central Bank's banking board since 2002, told Bloomberg. The problem is that neither the United States nor other countries have recognized the Taliban as a legitimate government because of their involvement in global terrorism. There are also concerns that the Taliban are massively violating human rights in the country. The country currently does not have access to the $ 9 billion reserve of the Afghan central bank. The Federal Reserve Bank in New York currently holds most of the funds. However, President Biden's administration froze assets held in US banks in Afghanistan as early as mid-August. Other states soon joined the US president's decision. The World Bank and the International Monetary Fund also suspended aid.