Taliban Central Bank Signs Financial Cooperation Deal With International Body

The Taliban administration has announced that Da Afghanistan Bank has signed a memorandum of understanding with the Afghan Credit Foundation, described as an international body, for cooperation in the financial sector. The agreement, according to the administration, is intended to help meet part of the needs of financial institutions and improve businesses’ access to financial resources.

Under the memorandum, cooperation will focus on strengthening the financial sector, expanding access to financial resources for small, medium and large enterprises, developing Islamic financial services, and building the capacity of financial institutions.

According to the Taliban administration, in the first stage of the programme, about $1 million in grants from the foundation will be allocated to five banks and one microfinance institution. The administration also claimed that the aid process will continue in later stages.

Despite the announcement of this cooperation, the amount of aid in the first stage appears limited in relation to the broad needs of Afghanistan’s financial sector. Da Afghanistan Bank is the country’s central bank, and since the Taliban returned to power, Afghanistan’s financial system has faced extensive internal and external restrictions and challenges.