HONG KONG/BEIJING May 23 A decision by some
Chinese banks to stop dollar business transactions with
Afghanistan banks is connected to recent attacks in China's
western Xinjiang region, two senior banking sources said.
One of the sources said dealings between Chinese and
Afghanistan banks were subjected to greater scrutiny as early as
two years ago in line with global rules, but regulation was
further tightened this year mainly due to the conflicts in
Xinjiang has seen a series of knife and bomb attacks in
recent months, which the Chinese government attributes to
Islamists and separatists, whom it says want to turn the region
into an independent state called East Turkestan.
"This is mainly because of the Xinjiang problem," the source
said. "The training ground of East Turkestan forces is in
As a result, the source said his bank has halted all
transactions with its Afghanistan counterparts this year.
China's central bank did not respond to questions sent by
Afghanistan's central bank governor told Reuters on Thursday
that Chinese banks have halted dollar transactions with most
Afghan commercial banks.
China had its biggest attack in Xinjiang in years on
Thursday when explosives were hurled from two vehicles that
ploughed into an open market, killing 31 and wounding 94.
(Reporting by Victoria Bi and Koh Gui Qing)