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Afghanistan’s Central Bank working to shift economy from cash to cards

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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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Iranian naval commander Alireza Tangsiri killed in airstrike, says Israel

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Israel’s defence minister says that an Israeli air strike has killed Alireza Tangsiri, commander of the Iranian Revolutionary Guards’ navy.

The killing was carried out “last night, in a precise and lethal operation” and targeted other “senior officers of the naval command”, said Israel Katz, in a video statement.

“The man who was directly responsible for the terrorist operation of mining and blocking the Strait of Hormuz to shipping was blown up and eliminated,” he claimed.

Since the start of the joint US-Israeli war on Iran on February 28, Israel has announced the assassination of several top Iranian officials, including Supreme Leader Ali Khamenei and the Islamic Republic ‘s powerful security chief, Ali Larijani.

Al Jazeera’s Tohid Asadi, reporting from Tehran, said there was no official Iranian confirmation yet of Tangsiri’s killing.

“But if it’s true it’s going to be another major blow for a country that has already experienced a lot of military commanders being killed” since the war began, he said.

The head of the Basij paramilitary forces, Brigadier General Gholamreza Soleimani, and Intelligence Minister Esmail Khatib were also assassinated in Israeli attacks.

Moreover, in recent days, Israeli forces have carried out several strikes targeting the naval assets of Iran.

Last week, Israeli airstrikes hit several Iranian naval ships in the Caspian Sea, including ones equipped with missile systems, support vessels, and patrol craft.

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Tajikistan shifts stance on Afghanistan amid rising border tensions

Earlier this month, Tajik lawmakers approved a $57 million deal for China to finance and build nine new border posts, underscoring Beijing’s expanding role in regional security.

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A surge in violence along the Tajikistan–Afghanistan border is prompting Tajikistan to recalibrate its policy toward Afghanistan, combining tighter security measures with cautious diplomatic engagement.

Earlier this month, Tajik lawmakers approved a $57 million deal for China to finance and build nine new border posts, underscoring Beijing’s expanding role in regional security.

The move follows a series of deadly incidents, including attacks that killed five Chinese nationals and clashes with smugglers that left several Afghan civilians and Tajik guards dead.

The violence reflects growing instability along the rugged frontier, much of it tracing the Panj River, with armed incidents rising sharply and drug seizures increasing significantly, according to Tajik authorities.

Alongside bolstering border infrastructure, Dushanbe is stepping up engagement with the Islamic Emirate. Recent months have seen unprecedented high-level contacts, including calls and meetings between Amir Khan Muttaqi and Sirojiddin Muhriddin, as well as talks with Tajik envoy Sadi Sharifi.

Once a staunch critic of the Islamic Emirate, Tajikistan’s President Emomali Rahmon’s government is gradually adopting a more pragmatic approach. Since the reopening of border markets in 2023, trade and security contacts have quietly expanded, with officials now openly acknowledging cooperation on energy and border security.

Analysts say the shift reflects a mix of rising security threats, regional pressure from partners like China and Russia, and the reality that the Islamic Emirate remain firmly in control in Kabul. While China funds infrastructure and Russia continues to support military training, experts describe the arrangement as a “division of labor” rather than a shift in regional influence.

Despite lingering concerns, observers note a clear warming in ties between Dushanbe and Kabul, driven as much by necessity as by strategy.

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Torkham crossing reopens for returning Afghan migrants

According to reports, the reopening has allowed the flow of Afghan returnees from Pakistan to resume, with many families entering Afghanistan through the crossing.

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The Torkham border crossing was reopened on Thursday at 2 p.m. for Afghan migrants returning to the country after nearly a month of closure.

According to reports, the reopening has allowed the flow of Afghan returnees from Pakistan to resume, with many families entering Afghanistan through the crossing.

Torkham is considered one of the most important crossing gateways between Afghanistan and Pakistan.

Its closure had created significant challenges for migrants and disrupted crossing movement.

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