New Delhi: The Taliban has prohibited the use of foreign currencies in Afghanistan, a decision that could further dent the country's economy which is already on the cusp of collapse, the BBC reported.

"The economic situation and national interests in the country require that all Afghans use Afghani currency in their every trade," the Taliban said.

The economy is in deep trouble owing to the withdrawal of overseas financial support after the Taliban took control of country in August.

The US dollar has been used widely in Afghani markets. Dollars are also used for trade in regions bordering the country's neighbours such as Pakistan.

"The Islamic Emirate instructs all citizens, shopkeepers, traders, businessmen and the general public to henceforth conduct all transactions in Afghanis and strictly refrain from using foreign currency," Taliban spokesman Zabihullah Mujahid said.

"Anyone violating this order will face legal action," the statement said.

After the Taliban took control of Afghanistan in August, billions of dollars of the country's foreign assets were frozen by the US Federal Reserve and central banks in Europe, the report said.

"We believe that it's essential that we maintain our sanctions against the Taliban but at the same time find ways for legitimate humanitarian assistance to get to the Afghan people. That's exactly what we're doing," Deputy US Treasury Secretary Wally Adeyemo told the Senate Banking Committee last month.

With IANS Inputs

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