Saturday, November 27, 2021

Talibans won’t have access to our funds, says IMF





The International Monetary Fund (IMF) has announced that Taliban, as of now, would not have access to most of the nation’s cash and gold stocks. 

A spokesperson for the Washington-based crisis lender said it would withhold assistance to Afghanistan over uncertainty of leadership status in Kabul. 

“There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access… IMF resources,” the official said.

Central bank governor Ajmal Ahmady said on Twitter the Da Afghanistan Bank (DAB) had around $9 billion in reserves, but most of that is held overseas, out of reach of the Taliban.

“As per international standards, most assets are held in safe, liquid assets such as Treasuries and gold,” said Ahmady, who fled the country on Sunday, fearing for his safety as the Taliban swept into the capital.

The US Federal Reserve holds $7 billion of the country’s reserves, including $1.2 billion in gold, while the rest is held in foreign accounts including at the Basel-based Bank for International Settlements, Ahmady said.

A US administration official told AFP on Monday that “any central bank assets the Afghan government have in the United States will not be made available to the Taliban.”

Amid reports the Taliban were quizzing central bank staff on the location of the assets, Ahmady said, “If this is true — it is clear they urgently need to add an economist on their team.”

He repeated that Washington on Friday had cut off cash shipments to the country as the security situation deteriorated, which may have fuelled reports the Taliban stole the reserves since the country’s banks could not return dollars to account holders.

“Please note that in no way were Afghanistan’s international reserves ever compromised,” and are held in accounts that are “easily audited,” Ahmady said.

The IMF is set to distribute 650 billion in SDRs on August 23 to all eligible members, of which Afghanistan’s share was valued at about $340 million, Ahmady said.

The IMF in June released the latest installment of the $370 million loan to Afghanistan approved in November and aimed at helping support the economy amid the Covid-19 pandemic.

The World Bank has more than two dozen development projects ongoing in the country and has provided $5.3 billion since 2002, mostly in grants.

The status of those programs is unclear as the development lender works to pull staff out of the country.

Meanwhile, Western Union announced Wednesday it was temporarily cutting off wire transfers to the country — another vital source of cash for the people.

 


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