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Afghanistan’s Central Bank working to shift economy from cash to cards
Da Afghanistan Bank (DAB), the country’s central bank, says it is stepping up efforts to reduce Afghanistan’s dependence on cash by promoting the use of electronic payment systems—including bank cards and automated machines—as part of a broader financial modernization agenda.
DAB spokesperson Hasibullah Noori announced that systems are being designed to enable users to carry out transactions through all types of automated payment technologies, a move aimed at improving transaction speed and reducing physical currency degradation.
People will be able to use electronic cards for their financial transactions, Noori said, adding that this will help reduce the wear and tear of paper money and also improve transaction efficiency.
The initiative, while modest in scope so far, signals the central bank’s intention to shift Afghanistan’s heavily cash-based economy toward a more digitally enabled financial ecosystem.
Afghanistan remains one of the most cash-reliant economies in the world, with the vast majority of daily personal and commercial transactions conducted using physical currency. This dependency is driven by multiple longstanding challenges including limited banking penetration, particularly in rural areas where over 70% of Afghans live.
International isolation and sanctions since the Islamic Emirate’s return to power in August 2021 have also led to increased challenges as Afghanistan deals with restricted access to the global banking system, frozen assets, and a reliance on informal transfer networks like hawala for both private and humanitarian finance.
Although DAB is promoting the use of electronic cards, many experts argue the supporting infrastructure is virtually nonexistent in most areas. Outside of Kabul and a few provincial capitals, point-of-sale (POS) terminals, card readers, and payment networks are rare.
Additionally, many of the cards currently in circulation are linked to limited-use payroll accounts for civil servants or NGO employees and are not widely accepted in markets, transport systems, or shops.
Economic analysts say however that before pushing digital payments, the central bank must invest in foundational infrastructure, including mobile banking systems, merchant acceptance networks, and public financial education.
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Afghanistan and Kyrgyzstan boost trade and digital finance ties
Minister Sydykov, in turn, pledged the continuation of Kyrgyzstan’s humanitarian assistance to Afghanistan and highlighted his country’s interest in working together on e-governance initiatives.
Afghanistan’s Deputy Prime Minister for Administrative Affairs, Abdul Salam Hanafi, has met with a high-level Kyrgyz delegation led by Minister of Economy and Commerce Bakhyt Sydykov to discuss expanding bilateral trade and strengthening cooperation in digital financial services.
During the meeting, Hanafi reaffirmed Afghanistan’s readiness to deepen ties with Kyrgyzstan, stressing the importance of developing electronic administration systems and modern banking channels to facilitate trade and financial transactions between the two countries.
Minister Sydykov, in turn, pledged the continuation of Kyrgyzstan’s humanitarian assistance to Afghanistan and highlighted his country’s interest in working together on e-governance initiatives. He also pointed to potential cooperation in areas such as the printing of securities and the development of electronic payment systems.
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India reaffirms healthcare support to Afghanistan, hands over medicines and vaccines
Indian officials said the support underscores New Delhi’s commitment to helping improve healthcare services and access to life-saving treatment in Afghanistan.
India has reaffirmed its commitment to continued humanitarian assistance and healthcare cooperation with Afghanistan, with a focus on the long-term supply of essential medicines.
According to the Ministry of Health and Family Welfare of the Government of India, Union Health Minister J.P. Nadda held a productive meeting with Afghanistan’s Minister of Public Health, Noor Jalal Jalali. The discussions focused on strengthening cooperation in the health sector and addressing the medical needs of the Afghan people.
During the meeting, a symbolic handover of cancer medicines and vaccines was carried out, reflecting India’s ongoing support for Afghanistan’s healthcare system. The ministry also announced that a larger consignment of medicines, vaccines, and a 128-slice CT scanner is being dispatched to Afghanistan as part of India’s humanitarian assistance efforts.
Indian officials said the support underscores New Delhi’s commitment to helping improve healthcare services and access to life-saving treatment in Afghanistan.
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Afghan forces target hideout of suspects linked to cross-border attacks on Chinese nationals
Afghan forces target hideout of suspects linked to cross-border attacks on Chinese nationals
Security sources said that special forces of the Islamic Emirate of Afghanistan (IEA) have targeted a hideout in Badakhshan province linked to suspects involved in attacks against Chinese nationals in neighboring Tajikistan.
According to the sources, the operation was carried out on Tuesday night in Faizabad city, where several individuals suspected of orchestrating cross-border attacks from Badakhshan’s frontier regions were believed to be present. As a result of the operation, one wanted suspect was arrested alive along with weapons and other military equipment.
The sources added that preliminary investigations and initial confessions by the detainee indicate the planning of the attacks was carried out from outside Afghanistan.
This comes as Tajikistan’s Ministry of Foreign Affairs announced on November 27 that three Chinese citizens were killed in an attack in Khatlon province.
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