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The Taliban's takeover of Afghanistan: are the markets in danger?


August, 16 2021
watermark Economic news

On Sunday, August 15, the terrorist movement «Taliban» established control over the entire territory of Afghanistan after the withdrawal of US troops from the country. The militants occupied the capital Kabul, seized the presidential palace and government buildings.


The return of the Taliban to power after 20 years in the shadows cast doubt on the stability of the Middle East and caused uncertainty in the markets over the weekend. As a result, the cost of contracts for the supply of oil has fallen, as well as the stock indices of the largest economies in Asia.


Investors note that the situation in Afghanistan is quite serious, since this country can again become a center for planning terrorist attacks. At the same time, analysts believe that the effect of the Taliban's actions is unlikely to be powerful for world markets, since there are too few large global companies in Afghanistan.


However, many believe otherwise. A number of experts believe that the current events may lead to a new economic crisis, since Iran, Pakistan, as well as the Central Asian republics of Tajikistan, Turkmenistan and Uzbekistan are dangerously close to Afghanistan. As a result, military actions and unrest can spread to the Middle East, offend US allies and NATO countries.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.