September 17, 2021

Afghanistan’s economy is on the brink

A developing economic crisis in Afghanistan is adding a fresh layer of turmoil in the country.

Why it matters: “[T]he value of the Afghan currency could collapse, inflation could accelerate and the mix of violence and chaos could be prolonged,” the AP writes.

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What’s new: Wire-transfer services Western Union and MoneyGram stopped facilitating payments into Afghanistan, a flow of money that’s “a key source of support for many Afghan families,” the Wall Street Journal reports.

The big picture: The country’s economy has relied on foreign aid that’s at risk of shriveling up with the Taliban takeover.

What to watch: The Taliban appointed Mohammad Idris — “an obscure official” — as acting head of Afghanistan’s central bank, charged with steering monetary policy,

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