Afghans queue in Kabul banks for cash as IMF suspends operations

Thousands of people in Afghanistan’s capital Kabul queued outside banks for long periods of time on Thursday to get cash out after banks limited the withdrawal amount to 20,000 ($200) Afghani a day. 

Taliban members appeared to be standing guard outside the banks while people were queuing and using walkie-talkies for communication, reported Yeni Safak. 

Banks in Kabul closed their doors on 15 August after the Taliban claimed the city for fear that looting and rioting would take place following the group’s arrival. 

The banks remained shut for 10 days after major funds were cut off by the US surmounting to $7bn of the Afghan Central Bank’s gold and cash reserves in the Federal Reserve, as well as The International Monetary Fund (IMF) cutting an upcoming payment of $460m. 

The World Bank has also suspended aid to Afghanistan, saying it is "deeply concerned" by the situation there, especially regarding women's rights, after the Taliban seized power, a bank spokesperson told AFP.

"We have paused disbursements in our operations in Afghanistan and we are closely monitoring and assessing the situation," the official said.

"We are deeply concerned about the situation in Afghanistan and the impact on the country's development prospects, especially for women."

The World Bank has more than two dozen development projects ongoing in the country and has provided $5.3 billion since 2002, mostly in grants, according to the bank's website.

Afghanistan is largely a cash-based society where most transactions are paid with physical money.  Many people are worried about surviving the coming days and weeks. 

Economic uncertainty now faces the country with the local Afghani falling 4.6% against the US dollar after the downfall of Ashraf Ghani’s government and more than a third of people living on less than $2 a day.