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USIP reports Afghanistan’s banking system dysfunctional

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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Uzbek and EU envoys meet, discuss Afghanistan

Uzbekistan’s Ministry of Foreign Affairs says the special representatives of Tashkent and the European Union have held discussions on key issues related to regional security and the current situation in Afghanistan.
According to a statement issued by the Uzbek foreign ministry, Ismatulla Irgashev and Eduards Stiprais also discussed prospects for deepening cooperation between Uzbekistan and the EU.
Stiprais, the EU Special Representative for Central Asia, expressed his interest during the meeting in holding constructive and systematic dialogues on issues concerning the situation in Afghanistan, the statement read.
He agreed to support regular consultations alongside Uzbekistan’s special representative.
Previously, special representatives from Uzbekistan and the EU had also discussed the situation in Afghanistan, the international community’s efforts to prevent a humanitarian crisis there, and the potential use of the Termez International Transport and Logistics Hub for delivering humanitarian aid.
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Putin says Moscow will continue effective cooperation with Islamic countries

Russian President Vladimir Putin says despite the difficult international situation, Moscow will continue its effective cooperation with Islamic countries.
Putin made this statement in his opening message to the 16th International Economic Forum “Russia–Islamic World,” also known as the Kazan Forum.
He added that Russia will expand its relations with these countries in various sectors.
“For centuries, our multi-ethnic country has embraced broad cooperation with the Islamic world, and today, despite the challenges in international cooperation, we continue to effectively and consistently expand our economic, scientific, educational, humanitarian, and interregional ties,” he stated.
The Kazan Forum, a major global platform for dialogue between Russia and the Islamic world, is being held in Kazan, Russia, from May 13 to May 18.
Officials from the Islamic Emirate have also been invited to attend the forum, and a delegation from Afghanistan is expected to participate.
Meanwhile, several analysts view this event as a valuable opportunity for Afghanistan to enhance engagement and cooperation with the international community, particularly with countries of the Commonwealth of Independent States (CIS).
Although Russia has not officially recognized the Islamic Emirate, in recent months it has reopened diplomatic channels and cooperation with Afghanistan, including suspending the designation of the IEA as a banned organization.
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Richard Bennett ‘shocked’ by explosive testimony of ex-British soldiers in killings of Afghans
The IEA said that foreign forces committed many war crimes in Afghanistan while stationed in the country over 20 years.

Richard Bennett, the UN Special Rapporteur on Human Rights in Afghanistan, has called for justice to be served over the unlawful killings by UK special forces in Afghanistan.
In a post on X on Monday, Bennett said the revelations in a recent investigation by BBC’s Panorama were “shocking”.
The Islamic Emirate also responded to the news and stated that foreign forces committed many war crimes in Afghanistan while stationed in the country over 20 years.
The IEA says these new confessions prove the extent of what transpired.
The BBC report featured testimony by several ex-soldiers on the unlawful killings while British troops were in Afghanistan.
These ex-soldiers told how British troops killed unarmed civilians in their sleep and executed blindfolded detainees.
One former soldier who served in Afghanistan recalled an incident in which troops “handcuffed a young boy and shot him. He was a child, not even close to fighting age.” He added that the killing of detainees by British special forces “became routine.”
Allegations of war crimes involving British forces in Afghanistan have circulated for years, and formal investigations are ongoing.
However, these inquiries and investigations by the BBC have still not led to any charges being brought against the alleged culprits or any meaningful justice for the victims.
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