IMPACTS OF THE AFGHAN FROZEN ASSETS ON THE TRADE AND BANKING OF AFGHANISTAN

Abstract

Valuable assets are reserves under the jurisdiction of the country's central bank that are used to support the national currency in emergency situations and financial crises in order to reduce currency fluctuations and access to services. Afghanistan has about nine and a half billion dollars of assets, which have been kept in various international banks and reputable financial organizations to stabilize the Afghan currency and strengthen and improve Afghan national and international trade. In 2021, when the Taliban took power in Afghanistan, the assets of Afghanistan were frozen by the United States of America, which created problems and shortcomings for the current Afghan government and the people of Afghanistan.

The significance of the research study is to elaborate on and discuss the impacts of the Afghan frozen assets on the society, finance, and business sectors of Afghanistan and to find a fair solution to get rid of the mentioned challenges and drawbacks. The purpose of this research study is to identify and introduce the assets of Afghanistan, provide accurate data about the assets of Afghanistan, and describe their impact on the business and banking sectors.

The doctrinal research methodology and descriptive, explanatory, and analytical research approaches are used in this work. It is worth mentioning that this research study is entirely based on library sources. The researcher concluded at the end of the research study that the issue of frozen assets, deteriorating economic conditions, unemployment, and non-recognition of the ruling government of Afghanistan are the major shortcomings confronting the Afghan banking and trade sectors.