Afghanistan’s central bank, Da Afghanistan Bank, on Thursday lifted restrictions on salaried people withdrawing their salaries.
The central bank had imposed restrictions in the face of stiff economic conditions in the country after the Taliban took over government in August 2021.
Salary-earning individuals were allowed to only withdraw only 30,000 Afs per week from their savings in banks, according to the orders of the country’s central bank.
A Central Bank spokesperson said that the decision to lift the restrictions on withdrawing funds from bank accounts was based on strategic considerations.
“Da Afghanistan Bank, based on strategic planning for the banking and financial sector and considering resources, canceled the existing restrictions on the salaries of government and non-government employees, and therefore all banks must pay out the entire salaries of government and non-government employees based on their demands without any delay,” the spokesman said.
The fall of the former government has come with severe challenges to the country’s banking system.
The decision has led to a spurt in the withdrawals and communication late evening suggested that banks were not able to keep up with the demand.
“People wish to withdraw money because there is uncertainty,” a staff of a humanitarian agency told OWSA. “Common people also need the money for day-to-day expenses, especially with Eid arriving in another couple of weeks.”
Interestingly, Thursday’s move to allow people to withdraw their money from the banks also coincided with a publicity campaign the central bank undertook to convey to people about the safety of their money in their own bank accounts.
Business unhappy
The move was not unexpected. An aid package of US$ 570 million had arrived a week earlier from the World Bank. Afghan officials had then expressed their optimism that the aid would help circulation of money in the markets.
The current Taliban-led Afghan government is not recognised by most governments across the world, with the UN system remaining the most important link for aid – humanitarian assistance and funding, alike.
However, the central bank’s decision to allow only salaried people to withdraw their money has caused resentment among businessmen. There are still limits on businessmen withdrawing of money from their bank accounts, especially because business cannot invest money on exports and imports.
Image: Grab from Da Afghanistan Bank promotion video
