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Surat exporters worried over Afghanistan’s pending dues

Sep 08, 2021
Surat exporters worried over Afghanistan’s pending dues

Surat, Gujarat

Textile traders in Surat are worried over pending payments of about Rs 4,000 crore from Afghanistan which have got stuck with the Taliban taking control of the country.

Afghanistan’s central bank has instructed the commercial banks not to allow corporate bank account holders to withdraw money for any purpose or to carry out any electronic transaction inside or outside of Afghanistan.

Afghanistan used to buy silk for turbans, textiles and readymade garments such as scarves, dresses and kaftans from India. The Federation of Indian Export Organisations (FIEO) has advised exporters and importers to wait and watch before taking any step.

Ajay Sahai, director general, FIEO, said that, the Afghani currency has depreciated to 87 Afghan afghani against US dollar from 80 Afghan afghani in the last one week. He added that it augurs well for exporters but pinches the importers. Sahai further informed that businesses in Afghanistan have informed them that the central bank of the country has said that it will not provide enough dollars to the local banks which means that Afghan business houses will not be able to pay the exporters.

Source: The Economic Times

Image Source: Google Images

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