A spokesperson for the Washington-based crisis lender on
Wednesday said it had 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,” 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
fueled 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.
No SDRs for Kabul
The IMF’s aid would include an existing $370 million loan
program, as well as access to reserves in the form of Special Drawing Rights
(SDR), the lender’s basket of currencies.
“As is always the case, the IMF is guided by the views of
the international community,” the fund official said.
The International Monetary Fund has taken similar action
against other regimes not recognized by a critical mass of member governments,
as in the case of Venezuela.
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.
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 announced Wednesday it was
temporarily cutting off wire transfers to the country — another vital source of
cash for the people.
AFP
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