Under pressure from the Biden administration, the International Monetary Fund announced Wednesday that it would not release $450 million in funding that was supposed to be delivered to Afghanistan next week.
International Monetary Fund Withhold $450 Million Amid Chaos in Afghanistan
In a recently published article in CNN News, the decision comes after the Treasury Department and congressional Republicans expressed reservations about transferring the money in light of the Taliban's overthrow of the US-backed government in Kabul.
The International Monetary Fund stated in a statement that Afghanistan is unable to access the money, known as Special Drawing Rights, or SDRs, owing to a lack of clarity among the international community over recognition of an Afghan government after it collapsed under the hands of the Taliban.
Meanwhile, a Treasury U.S. source told a news outlet early on Wednesday that the department is taking measures to block the Taliban from obtaining IMF money. The dispute centers on a previously planned distribution of the IMF's own currency, known as Special Drawing Rights. Dollars, euros, yen, Chinese yuan, and pound may all be traded for SDRs. Each day, the value of an SDR is determined using a basket of currencies, according to a published article in Local News8.
Taliban Cannot Access Afghan Central Bank Access
Da Afghanistan Bank (DAB) has $9 billion (£6.5 billion) in reserves, the majority of which is held in the United States. Dollar shipments, foreign loans, and assistance are all under jeopardy now that the extremists have taken control. The previous governor of DAB warned that the Afghan economy was on the verge of collapsing.
DAB's entire reserves were about $9 billion as of last week, according to Ajmal Ahmady, who was forced to leave the country over the weekend. However, he said that the majority of this was kept in secure, liquid assets such as U.S. Treasury bonds and gold abroad, as per international norms.
Ahmady said, "Given that the Taliban are still on international sanction lists, it is expected (confirmed?) that such assets will be frozen and not accessible to Taliban. We can say the accessible funds to the Taliban are perhaps 0.1-0.2% of Afghanistan's total international reserves. Not much," according to a published article in BBC News.
Recent Financial Statement of Da Afghanistan Bank
In a recently published article in Geo News, DAB's most current financial statement, published in June, indicates total assets of about $10 billion, including $1.3 billion in gold reserves in New York. It also claimed that the bank has $6.1 billion in investments but did not specify which ones. However, a breakdown from a report released at the end of last year revealed that they were mostly made up of U.S. Treasury bonds and bills held in the U.S., Switzerland, and Turkey.
DAB's foreign currency cash assets in June totaled $362 million and were kept in Afghanistan at the bank's headquarters, branches; and the presidential palace, which is currently under Taliban control. According to Unesco, the bank also has a modest quantity of gold bars and silver coins in its vaults, as well as a 2,000-year-old trove of gold jewelry, decorations, and coins known as the Bactrian Treasure.
