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China Halts Dollar Transactions With Afghan Commercial Banks

Pashtany Bank, one of the government's banks in Afghanistan.
Pashtany Bank, one of the government's banks in Afghanistan.
Afghanistan’s central bank chief says Chinese banks have halted U.S. dollar transactions with most Afghan commercial banks -- making it difficult for businesses to pay for imports from one of the country’s biggest trading partners.

Speaking with Reuters on May 22, central bank governor Noorullah Delawari said China was a major country handling bank transfers in U.S. dollars, “and now they have told the banks they can’t do it.”

Delawari said the impact on Afghan businesses has been felt immediately.

Despite intense pressure from Western backers, Afghanistan has failed to pass laws meeting global standards against money laundering and terrorist financing.

That has prompted banks from different countries to halt trade with Afghanistan’s commercial banks.

Delawari said the Chinese move is part of a trend that makes it increasingly difficult for Afghan banks to carry out international transactions.

Based on reporting by Reuters