Russia, China’s Dollar-Free Trade; Practical Model for Afghanistan

DIDPress: Russia and China are presenting a new model of trade by increasing the use of their national currencies in commercial exchanges, moving away from reliance on the US dollar.

The Taliban government is also engaged in advanced negotiations with Russia and China to settle trade transactions using their national currencies. This move aims to reduce dependence on the US dollar and strengthen economic ties with neighboring countries.

Nooruddin Azizi, the Taliban’s Minister of Industry and Commerce, told Afghanistan media outlets that the current Kabul administration has made a similar proposal to China, and negotiations have taken place at the Chinese embassy in Kabul.

“These proposals are currently being reviewed by technical teams from both sides,” he added.

These discussions come as Russia seeks to decrease its reliance on the US financial system by promoting non-dollar currencies in international trade.

At the same time, Afghanistan faces a sharp decline in dollar inflows due to cuts in foreign aid and sanctions, prompting efforts to find alternative ways to sustain its foreign trade.

The Taliban’s trade minister also noted that the current annual trade volume between Afghanistan and Russia is about $300 million, expecting to grow even further as cooperation is expanding.