Islamic Banking Will Help Boost Money Circulation: ABA

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Officials from Afghanistan Banks Association (ABA) have said that developing an Islamic banking system in the country will help boost money circulation and improve Afghanistan’s monetary system.

According to ABA, presently 11 percent of Afghans have more than 280 billion Afs in cash deposited in banks. However they call for an Islamic banking system to attract stagnant money and boost money circulation.

“Demands for an Islamic banking system is on the rise in the country. If Islamic banking services are offered to people, this will help attract a visible amount of money deposited by people in banks and strengthen money circulation,” ABA chief executive Najibullah Amiri said.

Meanwhile, a number of residents have also voiced support for the expansion of Islamic banking in the country to help bolster the national economy and to revive the monetary system.

“Alhamdullillah (Praising Allah in Arabic) we are Muslim, if an Islamic banking system is introduced in the country in line with the Islamic laws, we are prepared to deposit our money in these banks, this will help both the country and ourselves,” a resident in eastern Nangarhar province Mohammadullah said.

“If an Islamic banking system is initiated in the country, the majority of people will prefer to transfer their cash to banks,” another resident Hajji Samad said.

This comes at a time that rising insecurity and an uncertain political situation have discouraged many across the nation to put their money in banks and they prefer to keep their money at home which according to experts poses serious harm to the national economy.

Islamic banking refers to a system of banking or banking activity that is consistent with the principles of the Shari’ah (Islamic rulings) and its practical application through the development of Islamic economics.

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