When the Taliban tried a crucial shift from the rebel movement to a functioning government, Afghanistan faced the risk of financial collapse after being supported over the past two decades with foreign assistance which now contributed almost half of its legal economy.
The fate of the Afghan economy will be determined by the decision that the Biden government and other countries must expand whether they will recognize the Taliban as a legitimate government.
Meanwhile, the United States and the international community have transferred the flow of money, leaving Afghanistan in strangling sanctions designed to cut the Taliban from the global financial system.
Analysts said towering shocks threatened to strengthen the humanitarian crisis in a country that had experienced a war for years.
Signs of proven strain this week as the value of Afghanistan, Afghani, plummeted to record the lowest; And the latest nation central bank governor, Ajmal Ahmady, warned that inflation would likely send food prices to soar.
The United States, who had poured around $ 1 trillion to Afghanistan for 20 years, moved to block the access of Taliban to Afghanistan $ 9.4 billion in international reserves.
And the International Monetary Fund suspends a plan to distribute more than $ 400 million in emergency reserves to the country.
“In the short term, it has the potential for a big disaster,” said Justin Sandefur, a senior at the Global Development Center.
“You see the possibility of a collapse and financial crisis that can cause real pain in normal people.” Afghanistan economics faces severe challenges, and international support began to decrease, even before the Taliban takeover.
Withdrawal during the last year of the troops A.S.
And government contractors who contribute to Afghan tax revenue weaken the income when the country, such as many of the world, dodging with a coronavirus pandemic.
Congress Research Services recorded this year that 90% of Afghan residents live with less than $ 2 a day and warn that the loss of support A.S.
Will weaken one of the smallest economies in the world.
At the end of 2020, a foreign donor meeting in Geneva promised $ 12 billion to Afghanistan for the next four years, a decline of 20% from the previous four years.
Some new condition-based assistance agencies for money on the progress and progress of human rights with peace talks between the government and the Taliban.
Afghanistan faces economic shock as a sanction replacing assistance
