WASHINGTON – Despite its swift takeover of the government in Afghanistan, the Taliban will not have access to most of the nation’s cash and gold stocks, while the International Monetary Fund (IMF) announced that it will not provide aid.
A spokesman for the Washington-based crisis lender yesterday said it has decided to withhold its assistance to Afghanistan amid uncertainty over the status of the leadership 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.”
Da Afghanistan Bank (DAB) Governor Ajmal Ahmady tweeted that the central bank has around US$9 billion (RM38 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 US$7 billion of the country’s reserves, including US$1.2 billion in gold, while the rest is held in foreign accounts including at the Basel-based Bank for International Settlements, he said.
A US administration official told AFP on Monday that “any central bank assets the Afghan government has in the US will not be made available to the Taliban”.
Amid reports that the insurgents are quizzing DAB 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 that the Taliban stole the reserves since the country’s banks are unable to 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”, he said.
No SDRs for Kabul
IMF’s aid would include an existing US$370 million loan programme, as well as access to reserves in the form of Special Drawing Rights (SDRs), the lender’s basket of currencies.
“As is always the case, IMF is guided by the views of the international community,” said the fund’s official.
IMF has taken similar action against other regimes not recognised by a critical mass of member governments, as in the case of Venezuela.
The lender is set to distribute US$650 billion in SDRs next Monday to all eligible members, of which Afghanistan’s share had been valued at about US$340 million, said Ahmady.
IMF in June released the latest instalment of the US$370 million loan to Afghanistan approved last 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 US$5.3 billion since 2002, mostly in grants.
The status of those programmes is unclear as the development lender works to pull staff out of the country.
An internal memo to World Bank personnel obtained by AFP said “senior management is working around the clock to arrange an urgent evacuation of our staff and their family members”.
Meanwhile, Western Union yesterday announced that it is temporarily cutting off wire transfers to the country – another vital source of cash for the people. – AFP, August 19, 2021
