How Afghanistan’s Economy Can Survive Shrinking Shipments of U.N. Cash Aid

Afghanistan's precarious economy is facing a new set of multidimensional risks as humanitarian aid - delivered in massive shipments of U.S. cash dollars - shrinks rapidly amid competing demands from other crises around the world. The dollar inflows, moved under U.N. auspices, have helped stabilize the Afghan economy, cover its mammoth trade deficit, and inject monetary liquidity into commerce. With much smaller cash infusions, in line with a general reduction in aid, the suffering of Afghanistan's poverty-stricken population is likely to increase.

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