Afghanistan wants to trade with Russia and China in its own currency, not dollars

Afghan Trade Minister Haji Nuruddin Azizi said the government is negotiating with Russia and China to trade in national currencies instead of dollars. Negotiations with the Russians are at an advanced stage. Mechanisms for mutual settlements in rubles and Afghanis are being developed.

Similar proposals have been made with China, and a working group has been formed and negotiations are underway with the Chinese Embassy in Kabul.

Afghanistan's annual trade with Russia is currently around $300 million, and is expected to increase as imports of petroleum products and plastics increase. Annual trade with China is around $1 billion.

These initiatives are part of Russia and China's efforts to reduce their dependence on the US dollar and use their national currencies more actively in international trade. Afghanistan, meanwhile, is seeking an alternative path to economic stability amid a decline in international financial assistance and declining US dollar inflows.

For your information, Afghanistan's financial sector has been virtually cut off from the international banking system since the Taliban came to power in 2021. Therefore, the initiative to trade in national currencies is important for the country's economy.