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Afghanistan

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

KEY TAKEAWAYS

  • U.N. cash dollars for humanitarian aid also buttress Afghanistan’s balance of payments and inject liquidity.
  • A cash squeeze could destabilize a fragile economic equilibrium.
  • With good policies, the Afghan central bank and external donors can mitigate risks posed by dwindling cash flows.

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