The Taliban is tired of waiting for the dollar, and honestly, who can blame them?
In a bold move that signals both desperation and strategy, the Taliban is now in advanced talks with Russia and China to settle hundreds of millions in trade not in U.S. dollars, but in local currencies. Rubles, yuan, and Afghanis could soon replace Uncle Sam in Afghanistan’s trade books.
For starters, Afghanistan has been almost completely locked out of the global banking system since the Taliban returned to power in 2021.
With U.S. sanctions in place and international aid drying up faster than a Kabul riverbed, there’s just not enough greenbacks floating around. Less aid means fewer U.S. dollars, which means… a big financial headache.
Now, here’s where it gets interesting. Russia has been pushing hard to “de-dollarize” for years, especially since the West hit them with sanctions over Ukraine. China, too, has been encouraging global trade in yuan to increase its economic reach.
So when Afghanistan says, “Let’s do business in our own currencies,” Moscow and Beijing are already halfway there.
From a purely strategic point of view, it makes sense. The Taliban gets a workaround for sanctions and currency shortages. Russia and China get more regional influence and access to Afghanistan’s untapped natural resources. It’s classic geopolitical chess.
But the catch is that Afghanistan’s financial infrastructure is still extremely shaky. Solid systems will need to be in place to make this kind of local currency trading work, but right now, that’s a big “if.”
Still, for a country boxed out by the West and looking for a financial lifeline, cutting deals with Russia and China might be the smartest move the Taliban has made in a while.
Does it work? Time and a whole lot of rubles and yuan will tell.