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Central bank of Afghan drained its cash reserves before Kabul fell: Report.


An assessment report prepared for international donors regarding worsening economic crisis of Afghanistan, stated that the Central Bank of the country drained its dollar stockpiles before Taliban took over Afghanistan.

Senior international economic officials prepared a confidential brief with two pages, for international institutions including World Bank and International Monetary Fund, earlier this month. The brief concluded that the economic crisis of Afghanistan started even before Taliban captured Kabul.

The economic officials criticised the way the former leadership handled the economic crisis before Taliban took control of the country. The former leadership of the bank moved money from Kabul to provincial branches and decided to auction huge amounts of US dollars.

Reuters cited lines from the report seen by them, that said the Foreign Exchange reserves that had been in the Central Bank vaults in the capital city were depleted and the bank could not meet cash requests. The assessment added that the main source of the problem was the mismanagement done at the bank before Taliban’s conquest, to the conclusion.

The chairman of the central bank’s audit committee, Shah Mehrabi defended the actions of the central bank by saying that it was trying to avoid a run on the local currency of Afghanistan. Shah Mehrabi worked in the same post before Taliban takeover.

Afghanistan was in deep economic crisis even before the collapse of Western-backed government. When Taliban overthrew the government, the struggles intensified as billions of dollars of foreign aid froze abruptly.


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