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U.N. aims to launch new Afghanistan cash route in February
The United Nations aims to kick start this month a system to swap millions of aid dollars for Afghan currency in a plan to stem humanitarian and economic crises and bypass blacklisted Taliban leaders, according to an internal U.N. note seen by Reuters.
Since the Islamic Emirate of Afghanistan (IEA) takeover in August, foreign financial assistance has stopped and international banks are wary of testing U.N. and U.S. sanctions on the IEA, leaving the United Nations and aid groups struggling to obtain cash even as they continue to receive humanitarian donations.
The U.N. explanatory note, written last month, outlines an “urgently needed” Humanitarian Exchange Facility (HEF). The United Nations has warned that more than half of Afghanistan’s 39 million people are suffering extreme hunger and the economy, education and social services are collapsing.
“The overall objective is to have the HEF up and running in February,” the note said. “Prior to the full establishment of the facility, we seek to facilitate several trial swaps, to demonstrate exactly how the mechanism will work.”
U.N. and humanitarian officials warn that the facility can be only a temporary measure until Afghanistan’s central bank begins operating independently and some $9 billion in foreign reserves frozen abroad are released.
But when that could happen is uncertain. The reserves held by the United States are tied up in legal action and Western governments are reluctant to release funds unless they see the IEA show greater respect for human rights, especially those of women and girls.
The HEF would allow the United Nations – which is seeking $4.4 billion for humanitarian assistance this year – and aid groups access to large amounts of the national currency, the afghani, held in the country by private businesses.
In exchange, the United Nations would use aid dollars – potentially tens of millions – to pay the businesses’ foreign creditors, thereby bolstering the flagging private sector and critical imports.
“The facility’s flow of funds would not require the movement of funds across the Afghan border,” the U.N. note said.
While the money bypasses the IEA, the note says the HEF will need the approval of the IEA-run central bank for “the flow of funds and the exchange rate used and the withdrawal of AFN cash deposited into AIB (Afghanistan International Bank) without any restriction.”
A spokesman for the IEA care-taker government confirmed that officials in Afghanistan were aware of the proposal for the HEF, but did not know the details or the procedure.
“We welcome any kind of humanitarian actions for the people of Afghanistan, but all actions should be taken according to Afghanistan’s laws and national interests,” Bilal Karimi told Reuters on Friday in response to a question on the HEF.
The United Nations does not comment on leaked documents, U.N. spokesman Stephane Dujarric said of the note. U.N. Secretary-General Antonio Guterres has said Afghanistan is “hanging by a thread” and long pushed for international action to combat the economic crisis hampering aid efforts.
Afghanistan’s economy has continued to deteriorate, with inflation for basic household goods reaching nearly 42% in January, compared to the year-earlier period, the World Bank said on Wednesday. Wages and demand for labor continued to decline, as did imports, which were down 66% compared to a year earlier, it said.
Aid groups and U.N. officials have been advocating for a cash swap mechanism, but the U.N. note seen by Reuters provides new details on how it will work.
Graeme Smith, a senior consultant for the International Crisis Group think-tank, told the U.S. Senate Foreign Relations Committee on Wednesday that an exchange facility is needed quickly, but only as a stopgap measure.
“It is not sufficient,” he said. “Nobody should be under any illusions that this substitutes for the normal functioning of a central bank.”
Complicating the response, IEA leaders have banned the use of foreign currency in a country where U.S. dollars were common. The United Nations has flown in shipments of $100 bills, but the central bank has not converted them, leaving the world body sitting on about $135 million in cash that it cannot use, a U.N. official said last week.
Those funds are held in Kabul in the vaults of AIB, the official said, the private bank that would play a role in the new cash swap system.
The security of the cash flights and limits on how much can be delivered are key reasons for starting the new exchange facility, the note said.
World Bank and U.N. officials have been working to finalize the HEF, including completing a risk assessment, seeking a U.S. Treasury license to protect international banks from sanctions, and hiring a private company to vet participants and guard against money-laundering, the note said.
David Miliband, head of the International Rescue Committee, said the consequences of Afghanistan’s economic crisis could be devastating, and he called for a change in U.S. and international policy toward the country.
He told the Senate committee on Wednesday: “Current policy will indeed mean that a starvation crisis kills … more Afghans than the past 20 years of war.”
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Afghanistan, world and Asian canoeing federations hold online meeting
An online meeting between the heads of the Afghanistan National Canoeing Federation, the International Canoe Federation and the Asian Canoe Confederation was held on Wednesday to discuss challenges and opportunities for developing canoeing in Afghanistan.
According to a statement from the Afghanistan National Canoeing Federation, Mohammad Nasir Hakimzada, head of the federation, outlined the challenges, needs and existing opportunities for the development of the sport in the country.
The heads of the International Canoe Federation and the Asian Canoe Confederation praised the efforts of Afghan federation officials and emphasized their commitment to continued cooperation and support for the growth of the sport.
Officials from the organizations pledged to organize national and international training seminars, featuring international instructors, both inside and outside Afghanistan, to enhance the skills of Afghan coaches.
They also announced plans to support the Afghanistan National Canoeing Federation in the near future, including the donation of around 10 canoes and other sports equipment.
The heads of the International Canoe Federation and the Asian Canoe Confederation were also formally invited to visit Afghanistan. They pledged to travel to the country next year.
The meeting marks a step toward strengthening international cooperation, improving technical capacity and providing better facilities for the growth and development of canoeing in Afghanistan.
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Uzbekistan, Norway discuss Afghanistan and regional security in Oslo
Uzbek and Norwegian officials have held a two-day workshop in Oslo to discuss Afghanistan’s regional integration, security and economic cooperation, according to Javlon Vakhabov, an adviser to Uzbekistan’s president.
In a post on X, Vakhabov said the discussions were convened by the Norwegian Center for Conflict Resolution (NOREF) and focused on promoting pragmatic engagement with Afghanistan through sustained dialogue and cooperation in security, trade, energy, transit and regional connectivity.
The Uzbek delegation included Ismatulla Irgashev, the president’s special envoy for Afghanistan; Rakhmatulla Nurimbetov, Uzbekistan’s ambassador to Norway; Odil Gafarov, deputy director of the Institute for Advanced International Studies at the University of World Economy and Diplomacy; and Vakhabov himself.
Vakhabov said he shared Uzbekistan’s experience in peacebuilding and good-neighbourly relations, stressing that lasting stability depends on Afghanistan’s gradual integration into regional cooperation processes.
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Qatar calls for shift from humanitarian aid to economic recovery in Afghanistan
She also said Afghanistan’s future should be shaped through a comprehensive political process led by Afghans themselves, with respect for the country’s sovereignty, independence and territorial integrity.
Qatar has called for a shift from emergency humanitarian assistance toward economic recovery and private-sector development in Afghanistan, stressing the need for sustained international engagement to build a more stable future for the country.
Qatar’s Minister of State for International Cooperation, Maryam bint Ali bin Nasser Al Misnad, made the remarks Tuesday at the Afghanistan Coordination Group meeting in Doha.
Al Misnad said Qatar has provided and pledged nearly $150 million over the past decade for humanitarian and development projects in Afghanistan, particularly in health care, education and emergency response.
She warned that severe humanitarian needs and economic difficulties continue to affect Afghan families, while the return and displacement of people are placing additional pressure on public services and livelihoods. She said urgent needs remain in food security, health care, nutrition, education and access to water.
The minister stressed that assistance must be delivered transparently, with accountability and in line with humanitarian principles, with particular attention to vulnerable groups, including women and young people.
She also said Afghanistan’s future should be shaped through a comprehensive political process led by Afghans themselves, with respect for the country’s sovereignty, independence and territorial integrity.
Al Misnad highlighted Qatar’s role in facilitating dialogue on Afghanistan since the launch of the Doha peace process in 2013, as well as its support for initiatives such as the Solutions Strategy for Afghan Refugees and the Afghanistan Humanitarian Fund.
She said the UN-led Doha Process provides a platform for political engagement and practical cooperation, highlighting counter-narcotics and private-sector development as areas where international efforts could deliver tangible results.
Al Misnad urged participants to maintain Afghanistan’s place on the international agenda, establish clear priorities and renew their commitments to the Afghan people, emphasizing that technical cooperation should complement broader political efforts.
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