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U.N. has millions in Afghanistan bank, but cannot use it

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The United Nations has about $135 million in the bank in Afghanistan but is unable to use it because the Islamic Emirate-run central bank cannot convert it to the afghani currency, a senior U.N. official said on Thursday.

Abdallah al Dardari, head of the U.N. Development Programme in Afghanistan, said the United Nations had taken the U.S. dollars into the country and deposited it with the Afghanistan International Bank "with a clear promise from the central bank that fresh cash will be automatically converted to afghanis."

"This did not happen," he told the ACAMS Global Sanctions Space Summit, adding that UNDP itself has "$30 million stuck at AIB that I cannot convert to afghanis and without afghanis as you can imagine, we cannot implement all our programs."

The Islamic Emirate of Afghanistan (IEA), who seized power in August, banned the use of foreign currency in a country where U.S. dollars were common.

The IEA has long been under international sanctions, which the United Nations and aid groups say are now hindering humanitarian operations in Afghanistan, where more than half the country's 39 million people suffer extreme hunger and the economy, education and social services face collapse.

Billions of dollars in Afghan central bank reserves and foreign development aid have been frozen to prevent it from falling into IEA hands. International banks are wary of breaching sanctions, leaving the United Nations and aid groups struggling to get enough money into the country.

Liquidity is also a problem. Al Dardari told Reuters in November that while there was about $4 billion worth of afghanis in the economy, only about $500 million worth was in circulation.

The United Nations and the World Bank are discussing a possible swap facility, aid groups and U.N. officials have said.

Al Dardari said on Thursday that this would allow cash for humanitarian operations to be paid into a mechanism abroad and then afghanis could be collected "from major traders and mobile companies from inside Afghanistan."

He also said lessons could be learned from a program in Myanmar, where electronic payment systems bypassed the central bank. Myanmar's military have been hit with a raft of sanctions by the United States and others since a coup a year ago.

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Suhail Shaheen meets with Chinese ambassador to Qatar

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The head of the Islamic Emirate of Afghanistan’s (IEA) political office in Doha, Suhail Shaheen, met with China’s ambassador to Qatar late Monday for talks on bilateral relations, good neighborliness, and trade and investment opportunities between the two countries.

“About the Wakhan road, the export of Afghanistan's fresh fruit to China, the reconstruction of cold stores, China's assistance in the field of medical equipment to the Ministry of Health and good neighborliness between the two countries were discussed,” Shaheen said in a voice message.

China and the Islamic Emirate have been rapidly expanding relations in recent months.

Experts, meanwhile, have said that other countries need to engage with the IEA, as China is doing, in order for Afghanistan to come out of isolation.

Shaheen also met with Katharina Ritz, the head of the International Committee of the Red Cross (ICRC) delegation to Afghanistan.

He discussed numerous issues including humanitarian assistance, health sector challenges and climate change.

Both sides emphasized that ICRC activities need to be expanded, considering the needs of the people.

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IFRC reports over half of Afghanistan’s population needs urgent humanitarian aid

Afghanistan ranks among the most vulnerable countries globally to climate change and disaster risks

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The International Federation of Red Crescent (IFRC) has reported that Afghanistan continues to face prolonged and complex humanitarian crises.

IFRC said in a report published on Tuesday, that about 23.7 million people, more than half of Afghanistan’s population, are in urgent need of humanitarian aid.

According to the IFRC, natural disasters, the growing impact of climate change, population displacement, economic challenges, and food insecurity are the main factors contributing to Afghanistan’s ongoing humanitarian crisis.

Afghanistan ranks among the most vulnerable countries globally to climate change and disaster risks. 

The country is also prone to earthquakes, with nearly 400 tremors recorded in the last three years, including significant quakes, such as the 6.3 magnitude in Herat Province in October last year.

The compounding effects of disasters in the country have exacerbated the already fragile situation in Afghanistan, the IFRC’s report read. 

These successive disasters have pushed more Afghans into poverty and heightened their vulnerability. 

In addition, Afghanistan’s economic crisis is widespread, with more than half of households experiencing an economic shock. 

The country’s economy is heavily dependent on foreign aid and remittances, which have declined significantly since the political change in 2021. 

This has resulted in high levels of unemployment, challenging people’s coping mechanisms and thwarting the already fragile economy’s ability to adapt to shocks, the report read.

The IFRC said more than 85 percent of the country’s population is now living below the poverty line.

 

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Maldives recalls envoy to Pakistan over meeting with Afghanistan envoy

The island nation’s foreign ministry said the much publicized meeting had not been sanctioned by the government

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The Maldives government has recalled its top diplomat in Pakistan after he had an unauthorized meeting with an Islamic Emirate of Afghanistan envoy in Islamabad. 

The island nation’s foreign ministry said the much publicized meeting between the Maldives High Commissioner Mohamed Thoha and IEA envoy Sardar Ahmad Shakeeb on Friday had not been sanctioned by the government.

Maldives media reported that the foreign ministry stated: “Consequently, appropriate action has been taken by the government of Maldives.” 

Thoha’s name has also been removed from the website of the Maldives mission in Islamabad, and an official source told AFP that he had been recalled.

Since regained control of Afghanistan in August 2021, no country has yet officially recognized the government.

However, the IEA has been making inroads into the diplomatic arena and has official missions now stationed in a number of regional countries. 

 

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