Afghanistan Central Bank Announces Major Banking Reform

DID Press: An official from Afghanistan’s central bank announced the complete suspension of interest-based operations across all commercial banks in the country.

Latifullah Khairkhwah, Head of Banking and Financial Services Supervision at the Central Bank of Afghanistan, stated that all interest-based activities in commercial banks have been halted.

He said the decision is part of broader banking reforms aimed at restructuring the financial system and aligning it with the country’s new economic policies.

Khairkhwah emphasized that all commercial banks are required to comply with this directive and fully discontinue the use of interest-based mechanisms in their banking services.

According to the announcement, these changes are expected to affect financial service delivery, banking contracts, and financing methods within Afghanistan’s banking network.

The Central Bank had previously underscored the need to align the national financial system with new policy directions as part of structural reforms.