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USIP reports Afghanistan’s banking system dysfunctional

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The United States Institute of Peace (USIP) has said in a new report that Afghanistan’s banking system remains largely dysfunctional.

This report evaluated the Afghan banking system as inefficient. It said that the lack of access to Afghanistan’s foreign exchange reserves and the obstacles in the way of printing banknotes add to these problems.

USIP has warned that the decrease in cash and humanitarian aid will have a destructive effect on the economy and financial system of Afghanistan.

The report highlights systemic challenges within Afghanistan’s banking sector, including a backlog of bad loans and limited depositor access to funds due to withdrawal restrictions imposed by Da Afghanistan Bank (DAB).

“Afghanistan’s precarious economy is facing a new set of multidimensional risks as humanitarian aid — delivered in massive shipments of U.S. cash dollars — shrinks rapidly amid competing demands from other crises around the world. The dollar inflows, moved under U.N. auspices, have helped stabilize the Afghan economy, cover its mammoth trade deficit, and inject monetary liquidity into commerce,” the report said.

“With much smaller cash infusions, in line with a general reduction in aid, the suffering of Afghanistan’s poverty-stricken population is likely to increase,” USIP has warned.

The author of this report has suggested that, contrary to the confrontation between the countries of the world and the Islamic Emirate on the issue of women’s rights, other countries and international organizations can play a supporting role in facilitating the printing of more Afghan banknotes and allow the use of investment income from the Afghanistan Fund in Switzerland to stabilize the macroeconomics.

Da Afghanistan Bank (DAB) has not yet reacted to this report, but it has already emphasized that it will continue its efforts by implementing reasonable monetary policies that lead to maintaining the value of the afghani against other currencies.

DAB also stressed it will pay special attention to the strength of the banking sector and bring reforms and improvements as much as possible in this sector.

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Dozens of U.S. lawmakers oppose Afghan immigration freeze after Washington shooting

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Sixty-one members of the U.S. Congress have urged the Trump administration to reverse its decision to halt immigration processing for Afghan nationals, warning that the move unfairly targets Afghan nationals following a deadly shooting involving two National Guard members.

In a letter addressed to Secretary of State Marco Rubio and Homeland Security Secretary Kristi Noem, the lawmakers said the incident should not be used to vilify Afghans who are legally seeking entry into the United States. They stressed that Afghan applicants undergo extensive vetting involving multiple U.S. security agencies.

The letter criticized the suspension of Special Immigrant Visa processing, the termination of Temporary Protected Status for Afghanistan, and broader travel and asylum restrictions, warning that such policies endanger Afghan allies who supported U.S. forces during the war.

 “Exploiting this tragedy to sow division and inflame fear will not make America safer. Abandoning those who made the courageous choice to stand beside us signals to those we may need as allies in the future that we cannot be trusted to honor our commitments. That is a mistake we cannot afford,” the group said.

The U.S. admitted nearly 200,000 Afghan nationals in the wake of the U.S. withdrawal from Afghanistan.

Thousands of Afghans who worked with the U.S. military and their families still wait at military bases and refugee camps around the world for a small number of SIVs.

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Magnitude 5.3 earthquake strikes Afghanistan – USGS

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An earthquake of magnitude 5.3 struck Afghanistan on Friday, the United States Geological Survey (USGS) said.

The quake occurred at 10:09 local time at a depth of 35 km, USGS said.

Its epicentre was 25 kilometres from Nahrin district of Baghlan province in north Afghanistan.

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Chairman of US House intel panel criticizes Afghan evacuation vetting process

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Chairman of U.S. House intelligence committee, Rick Crawford, has criticized the Biden administration’s handling of Afghan admissions to the United States following the 2021 withdrawal from Afghanistan.

In a statement, Crawford said that alongside large numbers of migrants entering through the U.S. southern border, approximately 190,000 Afghan nationals were granted entry under Operation Allies Welcome after the U.S. military withdrawal. He claimed that many of those admitted lacked proper documentation and, in some cases, were allowed into the country without comprehensive biometric data being collected.

Crawford said that the United States had a duty to protect Afghans who worked alongside U.S. forces and institutions during the two-decade conflict. However, he argued that the rapid and poorly coordinated nature of the withdrawal created conditions that overwhelmed existing screening and vetting systems.

“The rushed and poorly planned withdrawal created a perfect storm,” Crawford said, asserting that it compromised the government’s ability to fully assess who was being admitted into the country.

He said that there 18,000 known or suspected terrorists in the U.S.

“Today, I look forward to getting a better understanding of the domestic counterterrorism picture, and hearing how the interagency is working to find, monitor, prosecute, and deport known or suspected terrorists that never should have entered our country to begin with,” he said.

The Biden administration has previously defended Operation Allies Welcome, stating that multiple layers of security screening were conducted in coordination with U.S. intelligence, defense, and homeland security agencies. Nonetheless, the evacuation and resettlement of Afghan nationals remains a contentious political issue, particularly amid broader debates over immigration and border security.

U.S. President Donald Trump’s administration recently ordered its diplomats worldwide to stop processing visas for Afghan nationals, effectively suspending the special immigration program for Afghans who helped the United States during its 20-year-long occupation of their home country.

The decision came after a former member of one of Afghanistan’s CIA-backed units was accused of shooting two U.S. National Guard soldiers in Washington, D.C.

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