Politics
2021.08.24 06:07 GMT+8

Afghanistan crisis: Millions face threat of economic ruin as prices rise and cash flow stops

Updated 2021.08.24 06:07 GMT+8
CGTN

In a week after The Taliban took control of Kabul, daily life for people in Afghanistan has become a struggle, with jobs gone, banks closed and soaring food prices.

Prices for essentials like flour and oil have skyrocketed by nearly 35% over the last week, while pharmacies and drugstores remain closed in Kabul.

People have been unable to access savings from banks that remained closed or receive remittance through Western Union services.

Afghanistan's currency rapidly dropped as the Taliban as took over provincial cities before making their siege on Kabul last week, pushing prices for foodstuffs higher.

The economic crisis in the country could grow more dire, after the U.S. froze $9.5 billion in assets belonging to Afghanistan's central bank and stopped cash shipments to the country last week.

International aid groups have warned that the suspension of commercial flights into Afghanistan meant getting supplies of medicine and aid into the country would be nearly impossible.

The U.S. recruited commercial airlines to help move Afghanistan evacuees on Sunday.

The cash shortage has already become a major threat to the Taliban’s return to power, as the government scrambles to put in a head of Afghanistan’s central bank.   

Exiled central bank chief Ajmal Ahmady in an interview with Bloomberg’s Odd Lots podcast said that a Taliban-led Afghanistan will face a number of shocks that will lead to weaker currency, and faster inflation.

Meanwhile, the U.S. is still attempting to evacuate people as more flights, with officials claiming that Monday saw the biggest day of evacuations out of Afghanistan. Twenty-eight U.S. military flights carried 10,400 people out of the country, according to the White House.

U.S. President Joe Biden said on Sunday, that he would not rule out extending the evacuation beyond August 31, the deadline to withdrawal U.S. troops and the formal end of the U.S. military role in Afghanistan.

But Taliban spokesman Suhail Shaheen, speaking with Sky News, said the August 31 is a “red line” that U.S. must not cross, saying extending the American presence would “provoke a reaction."

Early Monday, a firefight outside of Kabul’s international airport killed an Afghan soldier and left at least three wounded.

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