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Afghan central bank board member asks Biden, IMF to release funds

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(Last Updated On: September 2, 2021)

A senior board member of Afghanistan’s central bank is urging the US Treasury and the International Monetary Fund to take steps to provide the Taliban-led government limited access to the country’s reserves to avoid economic disaster.

The Taliban took over Afghanistan with astonishing speed, but it appears unlikely that they will get quick access to most of the roughly $10 billion in assets held by Da Afghanistan Bank (DAB), which are mostly outside of the country, Reuters reported.

US President Joe Biden’s administration has said any central bank assets the Afghan government have in the United States will not be made available to the Taliban, and the IMF has said the country will not have access to the lender’s resources.

Shah Mehrabi, an economics professor at Montgomery College in Maryland and a member of the bank’s board since 2002, told Reuters in a telephone interview on Wednesday that Afghanistan faces an “inevitable economic and humanitarian crisis” if its international reserves remain frozen.

Mehrabi stressed he does not speak for the Taliban but is making this push in his capacity as a sitting board member. He said he plans to meet with US lawmakers this week, and hopes to talk to US Treasury officials soon as well.

“If the international community wants to prevent an economic collapse, one way would be to allow Afghanistan to gain limited and monitored access to its reserves,” he told Reuters.

“Having no access will choke off the Afghan economy, and directly hurt the Afghan people, with families pushed further into poverty.”

Mehrabi is proposing that Washington allow the new government in Kabul a limited amount of access each month, perhaps in the range of $100m to $125m to start with, that would be monitored by an independent auditor.

“The Biden administration should negotiate with the Taliban over the money in the same way they negotiated over the evacuation,” he said.

If the assets remain entirely frozen, then inflation will continue to soar, Afghans will not be able to afford basic necessities, and the central bank will lose its main tools for conducting monetary policy, he said.

The Taliban can survive on customs duties, increasing opium production, or selling off captured American military gear, but everyday Afghans will suffer and be solely reliant on international aid if the country does not have access to currency, Mehrabi added.

After nearly 20 years of American intervention, the Afghan economy is heavily dollarised, and depends on imports that largely must be purchased with foreign currency, he said.

With overseas reserves off-limits, Da Afghanistan Bank may be undermined after having cultivated a non-political, technocratic institution that so far has been allowed to continue its work under the Taliban, Mehrabi said.

“Their work there is not based on who is in power,” he said, noting that he has not been personally in touch with Taliban representatives, but is in daily contact with colleagues running operations there now.

Ajmal Ahmady, who led the central bank until the capture of Kabul, has said about $7 billion of DAB’s assets was held as a mixture of cash, gold, bonds and other investments at the US Federal Reserve.

Most of the rest is in other international accounts and at the Bank for International Settlements, a bank for central banks based in Switzerland, and not physically in DAB vaults, he said – leaving about 0.2 percent or less of the total accessible to the Taliban.

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Russia’s special envoy meets with IEA ministers, discusses bilateral issues

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(Last Updated On: April 23, 2024)

Zamir Kabulov, the Special Representative of the President of the Russian Federation for Afghanistan, who is on a visit to Kabul, has met with the Minister of Foreign Affairs of the Islamic Emirate Mawlavi Amir Khan Muttaqi for talks on political and economic issues between Afghanistan and Russia.

Regional issues were also discussed.

Muttaqi expressed appreciation for Russia’s support at regional and international meetings and emphasized the need to further strengthen political ties and trade relations between the two countries.

He also said that Afghanistan’s relations with countries in the region are flourishing and currently Afghanistan has active embassies in all neighboring countries.

Muttaqi called Afghanistan’s relations with Russia important and said the current ground realities of Afghanistan should be understood and that there is no reason why the United Nations needs to appoint a special representative to deal with Afghanistan.

He said the Afghan government is in talks with the UN over this issue and will make public its position after sufficient clarification has been provided on the agenda and composition of the next UN meeting in Doha.

Kabulov in turn stressed that any meeting held on Afghanistan should be convened with the approval of the Afghan government.

He said it is important for the United Nations to have the Afghan government approve and attend the next Doha meeting.

He said this series of meetings will not yield positive results without the Afghan government being in agreement.

He also said governments of the world should maintain relations with the Afghan government through bilateral mechanisms instead of multilateral contact mechanisms.

Kabulov emphasized that the US should release Afghanistan’s frozen assets and end its unilateral and “illegal” restrictions on the country’s banking system.

He also said Russia and Afghanistan need to improve coordination between them and went on to say he hoped Muttaqi would visit Moscow during the course of this year.

Kabulov also met with acting Minister of Interior Affairs Sirajuddin Haqqani.

This meeting focused on bilateral relations between both countries while political and security issues pertaining to the region were also discussed, the ministry said.

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Afghans in Europe Union members meet with ministers of defense, mining

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(Last Updated On: April 23, 2024)

Representatives of the Union of Afghans living in Europe on Tuesday met with the ministers of defense and mining for talks on several issues.

Acting Minister of National Defense Mohammad Yaqoub Mujahid said in a meeting with union delegates that the current security situation in the country has provided an opportunity for everyone to participate in the progress of Afghanistan.

Mujahid added that there were still some problems in certain areas but that these will be removed.

In this meeting, Mujahid called Afghanistan the common home of all Afghans and said the problems in the country will be solved soon.

“The problems that exist in some issues will be solved soon; but there was nothing more than the security that has been revealed in this land today with the help of Allah and with the sacrifices of our people,” he was quoted in a statement as saying.

According to the statement, a number of Afghans, who only moved to the country after the Islamic Emirate’s takeover, expressed their satisfaction with the current situation in the country.

In addition, Shahabuddin Delawar, acting Minister of Mines and Petroleum, also met with union representatives and asked Afghans living abroad to return to Afghanistan and contribute to the country’s progress.

In this meeting, the Afghans living in Europe asked Delawar to provide better facilities to Afghans who want to invest in the country. The Ministry of Mines and Petroleum says that Delawar also asked the visiting delegation to return to Afghanistan and contribute to the country’s development.

Earlier, in a meeting with a number of other officials of the Islamic Emirate, including the political deputy of the Prime Minister and the Acting Minister of Foreign Affairs, this delegation emphasized the need to strengthen the system and provide work and education to Afghan girls and women.

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Regional developments require Afghanistan, China’s full coordination to protect interests: Muttaqi

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(Last Updated On: April 23, 2024)

Acting Minister of Foreign Affairs Amir Khan Muttaqi has said that recent events and developments in the region require that Afghanistan and China continue their cooperation in full coordination so that they can protect their common interests.

Muttaqi stated this in a meeting with the Chinese ambassador in Kabul Zhao Xing.

The Ministry of Foreign Affairs said in a statement Tuesday that the two sides discussed bilateral political, economic and cultural cooperation between Afghanistan and China and the recent developments in the region.

Muttaqi expressed his satisfaction with the expansion of political, economic and cultural relations between the two countries and said that the Islamic Emirate has created good opportunities in the field of trade and investment.

He pointed out that the increase in the export of pine nuts to China and the progress in the Mes Aynak and Wakhan Corridor projects are clear examples of this policy of the Islamic Emirate.

According to the Ministry of Foreign Affairs’ statement, the Chinese ambassador considered the developments in various fields with Afghanistan as positive and added that he seeks to encourage Chinese businessmen and investors to play their role for long-term economic cooperation with Afghanistan.

He also said that his country is considering ways of bilateral cooperation and resources regarding Wakhan Corridor.

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