The Taliban has banned the use of foreign currencies in Afghanistan, reported BBC.

“The Islamic Emirate instructs all citizens, shopkeepers, traders, businessmen and the general public to henceforth conduct all transactions in Afghanis and strictly refrain from using foreign currency,” Taliban spokesperson Zabihullah Mujahid said in a statement.

Citizens who are found violating the order “will face legal action”, the statement added.

The Taliban had seized control of Afghanistan on August 15 as the United States and its allies prepared to pull out their troops from the country after 20 years. In September, the insurgent group formed an interim government in Afghanistan.

The country’s new prime minister, Mullah Mohammad Hasan Akhund, is on the sanctions list of the United Nations.

The country’s economy is on the brink of a collapse and the decision to ban foreign currencies could aggravate the situation, according to BBC.

At present, many transactions in the country are conducted in US dollars. Pakistani rupees are used in areas that are close to the southern border trade routes, reported AFP.

The Taliban’s decision to ban foreign currencies came as the group has appealed to release Afghanistan’s assets that the United States Federal Reserve and European central banks have frozen after the takeover.

The International Monetary Fund had blocked Afghanistan from accessing its reserves and the World Bank had halted funding for projects in the country.

These decisions devastated the country’s economy, leaving it to face a cash crunch, mass starvation and a new migration crisis, according to Al Jazeera. The country’s healthcare and other sectors are struggling to run operations amid cutbacks of foreign aid.

Earlier this month, the World Food Programme had said that about 2.28 crore people were facing acute food shortage and were “marching to starvation”, compared to 1.4 crore in August. Afghanistan has a population of 3.9 crore.