The Central Bank of Afghanistan said that money exchangers and companies that engage in currency exchange are no longer permitted to hold or lend their clients’ money without a permit.
“Monetary services firms and money changers cannot register client information at unauthorized registration offices. Also, monetary and currency service firms are not permitted to conduct money exchange operations in the nation through individuals without permission,” said Hasibullah Noori, a spokesman of the Central Bank.
According to the Central Bank of Afghanistan, permits are required for operations involving money exchange organizations and monetary services providing money transfers, currency exchange, and cheque conversion to cash.
In the meantime, the Sarai Shahzada money exchangers union in Kabul, said that the Central Bank must grant permission for unlicensed companies to stop providing illegal financial services in Afghanistan.
“The Central Bank should work with us and grant licenses to applicants in order to stop illegal activities,” said Abdul Rahman Zirak, a spokesman of the union.
Some economists said that since Afghan banks are subject to sanctions, the only way to provide monetary services outside is through money exchangers and financial service companies.
“It is the only means of trade for national and financial interactions as Afghan banks cannot provide complete banking services, not even provide people’s deposits, and are constrained in money transfers,” said Azerakhsh Hafizi, an economist.
“The money changers can transfer money, engage in foreign currency transactions, and pay checks, but they cannot keep people’s deposits or lend them money,” said Sieyar Qurishi, another economist.
According to data from the Sarai Shahzada money changers union in Kabul, the Central Bank of Afghanistan has granted permits to almost 800 companies that provide currency and monetary services in Afghanistan. However, a significant number of applicants have not yet received a license from the bank despite having paid the bank the guaranteed money.
