News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • In the West, that qualifies as a default action. Let's see how it is treated in the world's second largest economy https://t.co/PKWy7SE8Dt
  • Some Evergrande offshore bondholders do not expect company to make interest payment by Thursday deadline
  • The flash September US PMIs slowed more sharply than expected. That was a general trend across the developed world with most economies continuing to slow from their post-Pandemic peak recovery paces https://t.co/TgkUDlOyAe
  • 🇺🇸 CB Leading Index MoM (AUG) Actual: 0.9% Expected: 0.7% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-09-23
  • $SPY showing some strength, support at the 50, res at the 23.6 $SPX $ES https://t.co/hYmriFrTKR
  • 🇺🇸 Markit Manufacturing PMI Flash (SEP) Actual: 60.5 Expected: 61.5 Previous: 61.1 https://www.dailyfx.com/economic-calendar#2021-09-23
  • Heads Up:🇺🇸 CB Leading Index MoM (AUG) due at 14:00 GMT (15min) Expected: 0.7% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-09-23
  • Bank of England left policy measures unchanged as expected with the Bank Rate remaining at 0.1% and gilt purchases at GBP 875bln.Get your $GBP market update from @JMcQueenFX here:https://t.co/px04sJbCuq https://t.co/uwJLHi8YGL
  • $USD pulling back from that Sept high that was set after FOMC yday price action still messy, but a semblance of support around the 93 handle $DXY https://t.co/8HqX3fqvEI
  • Heads Up:🇺🇸 Markit Manufacturing PMI Flash (SEP) due at 13:45 GMT (15min) Expected: 61.5 Previous: 61.1 https://www.dailyfx.com/economic-calendar#2021-09-23
USD/AFN Hits Record High as US Freezes Afghan Assets After Taliban Seizes Kabul

USD/AFN Hits Record High as US Freezes Afghan Assets After Taliban Seizes Kabul

Brendan Fagan,

Afghanistan, Taliban, USD/AFN, Federal Reserve, Kabul – Talking Points

  • Biden Administration freezes Afghan gov’t assets held in US banks
  • US Dollar shipments to Afghanistan were halted last week
  • USD/AFN jumps from 80 to 86 as Kabul falls into the hands of the Taliban
Advertisement

US Government officials announced on Tuesday that they had recently frozen billions of dollars that the Afghan government had stored in US bank accounts, blocking the funds from being used by the Taliban. The decision was made after the Treasury Department consulted with the State Department, with Treasury Secretary Janet Yellen giving the measure the green light. An anonymous official speaking on behalf of the Biden administration noted that “Any Central Bank assets the Afghan government have in the United States will not be made available to the Taliban." This all comes after the Biden Administration halted shipments of US Dollars to the country as the Taliban closed in on Kabul.

Afghanistan is one of the poorest counties on earth, with the Afghan central bank having just $9.4 billion in reserves as of April, according to the International Monetary Fund. According to administration sources, much of those reserves are held overseas, with billions being held in US bank accounts. Nearly 80% of the Afghani budget is funded by the US and other international donors, highlighting the fragility of the situation at hand. With the expectation that billions in aid may also cease to flow to Afghanistan, the future of the domestic economy remains on a knife-edge.

USD/AFN Daily Chart

usdafn chart

Chart provided by TradingView

Central Bank Acting Governor Ajmal Ahmady noted in remarks that the move by the US to freeze Afghan assets limits the Taliban to just 0.1% of the former government’s assets. Ahmady went on to say that as the Taliban closed in on Kabul, Afghan bank officials began to draw down cash piles, most notably stashes of US Dollars. By the time the Taliban had captured the first major provincial capital, Ahmady said that nearly all US Dollars had already been repatriated. The chaos surrounding the transition between governments saw USD/AFN skyrocket from an 80 handle all the way to 86.

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES