Local officials in Herat announced on Tuesday that hundreds of unlicensed exchange shops in the province have been shut down.

According to the officials, these exchange shops have been operating for several years and must now obtain a license to continue their activities. The Central Bank had instructed these shops months ago to obtain a license from the bank to continue their operations.

Hayatullah Mohajer Farahi, the acting deputy governor of Herat, stated: "Obtaining a license has become mandatory, and those without a license will be dealt with by the government. We hope that by implementing this process, order will be established in the exchange market."

Ghulam Mohammad Sohrabi, head of the Herat Money Exchangers' Union, said: "Ten to twelve markets in Herat city were operating arbitrarily and had not obtained exchange licenses for several years. I believe each market has between fifty to one hundred and two hundred exchange shops."

Money exchangers gathered in front of the governor's office in Herat city, demanding the reopening of their exchange shops. They have asked the government to give them more time and to reduce the license fee and guarantee money.

Yargul Alizai, one of the exchangers in Herat, said: "The government should have both retail and wholesale licenses and should assess the capital of the exchangers to see if we have the capacity for 13 million afghani or not. They have closed the exchange shops, and most of the exchangers have spent thirty years of their lives in this business."

Noor Ahmad Hakimi, another exchanger in Herat, said: "My work is only transferring money from Iran in two districts of Herat. My capital is not more than 500 million Iranian Tomans, which equals 500,000 Afghanis. Am I equal to an exchanger who has a capital of seven million dollars?"

Local officials in Herat said that the purpose of making licenses mandatory for exchange shops is to prevent money smuggling out of the country, maintaining the value of the afghani against foreign currencies, and regulating the activities of the exchangers.

According to the government's decision, each exchanger is required to deposit a guarantee of six million afghani with the Central Bank, and the activities of street exchangers have been banned throughout the country.