Afghanistan’s Fall And Its Possible Impact On The Global Financial Markets
Taliban Takes Control Of Kabul
The Taliban taking control of Kabul and effectively replacing the Afghan government has been the biggest news in the globe over the last few days. The uncertainty comes after the US and its allies withdrew its soldiers for the first time in a decade from the Middle Eastern country.
For the first time since the 9/11 attacks, US President Joe Biden said earlier this year that the country will be withdrawing its soldiers from the Middle Eastern country. According to the president, the US has spent over a trillion dollars in the country and has met its objectives.
However, it did not take long for the Taliban to completely overrun the Afghan military and seize control of major territories throughout the country. The group took control of Kabul, the nation’s capital, on Sunday evening, forcing President Ashraf Ghani to flee the country. The Taliban took complete control of the presidential palace and declared the war to be over.
Over the last 24 hours, the Afghan situation has deteriorated, with thousands of people attempting to flee the country due to the uncertainty of Taliban leadership. Thousands of people are attempting to flee the country through airports across the country, while millions more are lining up at passport offices to process their visas and flee.
Local And International Markets Could Be Affected By The Situation In Afghanistan
There is no factor that has a negative impact on financial markets more than investor uncertainty. Following the recent unrest and the overthrow of the president, investor confidence in Afghanistan may have reached an all-time low.
Millions are hoping to escape the nation, and this suggests that essentially all parts of the economy are not working. In case individuals are stressed over leaving the country, they will not settle down to manage their responsibilities, and this will contrarily influence the economy. With monetary exercises as of now down, it is just correct that the monetary business sectors are down too.
Besides, some unfamiliar nations, for example, Germany are beginning to haul their kin out of the country. Financial backers, however unfamiliar and nearby, will have little revenue in the Afghan monetary business sectors right now, and this would have both short and medium-term impacts on the economy. On the off chance that the Taliban stays in power, numerous financial backers will pull out of Afghanistan as they would not make certain of the functioning conditions under the new Islamic initiative.
On the worldwide stage, the monetary business sectors would likewise be influenced. Up until this point, the impacts of the distress in Afghanistan are now noticeable in different pieces of the world. Monetary market lists are down, with financial backers definitely watching to perceive how the world chiefs would respond to the circumstance.
The FTSE 100 dropped by 0.90% today, while the STOXX Europe 600 additionally lost 0.50% of its worth. The Dow Jones Industrial Average (DIJA) and the S&P 500 are additionally somewhere near 0.065% and 0.23% so far today. The NASDAQ composite is another significant file that is as of now exchanging the red zone, and it is somewhere near 0.74% at the hour of this report.
