Cash troubles in Afghanistan…

I have a student in Afghanistan. He reports that capital flows are disrupting business there. He says that foreign and domestic money is leaving the country. The most important thing he tells me is that businesses are not paying wages. Many businesses have not paid wages in the past 3 months.

He says that many businesses are protecting their cash outside of the country and resist bringing it back in, even to pay wages.

Keep in mind this is a report from just one person. Exactly how widespread or long-term this liquidity problem is, I do not know.