The people of Afghanistan are facing “dire” financial prospects, the former head of its central bank has warned, cautioning that an acute shortage of dollars and higher inflation will fuel the flow of migrants out of the country.
Ajmal Ahmady, who escaped Kabul on Sunday, told the Financial Times that Afghanistan had been dependent on bulk shipments of dollar reserves from the US and was now rapidly running short, leading to the likelihood of higher food prices and capital controls.
“If people think, it’s bad but it’s over, I think they’re underestimating the impact . . . we’ve finished the military phase and now we’re going to start the economic phase of the impact,” Ahmady said in a telephone interview on Wednesday.
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