KABUL - Chinese embassy in Afghanistan has termed the media reports on halting dollar transaction between the banks of its country and Afghan commercial banks as baseless.

"The media report which claimed that the Chinese banks have halted dollar transactions with most Afghan commercial banks recently is utterly groundless," Counselor Chen Shijie, Chinese Embassy in Afghanistan said in a statement released here on Sunday.

The Banks of China and Afghanistan have normal business ties, the statement said, adding China attaches great importance to developing its relationship with Afghanistan and is willing, as always, to work together with the Afghan side to promote the bilateral cooperation in all fields.

Certain media outlets reported recently that the failure of the Afghan government to approve Anti-Money Laundering and Prevention of Financing Terrorism Law has prompted Chinese banks to stop dollar transactions with commercial banks in Afghanistan.

The intergovernmental Financial Action Task Force (FATF) has warned that Afghanistan will be placed on a blacklist that would severely reduce international investment in the country if fails to approve Anti-Money Laundering and Prevention of Financing Terrorism Law.

Afghanistan has just 20 days to ratify the law, according to local media reports.