Key points
- Interim Afghan government has made similar proposals to China: Acting Minister
- Chinese foreign ministry, Russian central bank did not issue any statement over matter: Reuters
- Afghanistan’s financial sector has been largely cut off from the global banking system: Independent
ISLAMABAD: Acting Commerce Minister of Afghanistan has claimed that the Interim government is in advanced talks with Russia for banks from both sanctions-hit economies to settle trade transactions worth hundreds of millions of dollars in their local currencies, according to Reuters.
Reuters cited Acting Commerce Minister Haji Nooruddin Azizi as saying, “Afghan government has made similar proposals to China, and some discussions have been held with the Chinese embassy in Kabul”.
“Sanctions and challenges”
He said that the proposal with Russia, was being worked on by technical teams from the two countries. “We are currently engaged in specialised discussions on this matter, considering the regional and global economic perspectives, sanctions, and the challenges Afghanistan is currently facing, as well as those Russia is dealing with. Technical discussions are underway,” Reuters cited Azizi as saying.
The report stated that the Chinese foreign ministry and the Russian central bank did not immediately respond to requests for comment.
Cut off from global banking system
Afghanistan’s financial sector has been largely cut off from the global banking system due to sanctions placed on some leaders of the ruling Taliban, which took over the country in 2021 as foreign forces withdrew.
The move comes as Moscow focuses on using national currencies to shift reliance away from the dollar and as Afghanistan faces a stark drop in the US currency entering the country due to aid cuts. Both countries have been hit hard by sanctions, according to Independent.
