Since the Taliban has taken over Afghanistan, the US has frozen billions in Afghan reserves and has pressured the International Monetary Fund to suspend Afghanistan’s access to IMF funds. A board member of Afghanistan’s central bank is urging the US and IMF to give the Taliban-led government some access to these funds to avoid an economic disaster.
“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,” Shah Mehrabi, a board member of Da Afghanistan Bank, told Reuters. “Having no access will choke off the Afghan economy, and directly hurt the Afghan people, with families pushed further into poverty.”
Afghanistan’s central bank has about $10 billion in assets, which are mostly held outside of the country. About $7 billion is held by the US Federal Reserve, and the US has the power to block access to other offshore funds by the threat of sanctions.
Mehrabi said the US should allow the Taliban to have limited access to the funds. “The Biden administration should negotiate with the Taliban over the money in the same way they negotiated over the evacuation,” he said.
The Biden administration is using its financial power as leverage over the Taliban. The US claims that it cares about the people of Afghanistan, but history shows US sanctions and other means of economic warfare to little to change governments and always hurt the civilian population of the target country.
For their part, the Taliban wants Washington to reopen its embassy in Kabul and seeks a trade relationship with the US. “America should have only a diplomatic presence in Kabul. We have communication channels with them and we expect them to reopen their embassy in Kabul and we also want to have trade relations with them,” Taliban spokesman Zabihullah Mujahid said on Tuesday.
Blocking Afghanistan from access to their own money is immoral and criminal. The US could gain by opening trade channels with Afghanistan.
Now the real imprisonment begins: Debt
Then the blockade.
Afghan people are the ones that would suffer on this US stunt…!
https://www.indianpunchline.com/reflections-on-events-in-afghanistan-13/
No where in Western press coverage have I seen references to Afghanistan’s 1,731 tons of gold officially sequestered in US custody.
https://www.bullionstar.com/blogs/ronan-manly/afghanistans-gold-at-the-new-york-fed-1731-very-old-bars-held-since-1939/
Granted, it’s probably not there and likely hypothecated many times over since 2001. Send them at least $100 billion in foodstuffs and other necessities and let them rebuild.
MK Bhadrakumar’s article provides valuable insight behind Afghanistan’s prevailing efforts at literally rebuilding from scratch.
The headwinds are numerous domestic tribes and foreign players vying for mineral riches and political seats. The status quo could fall apart before gaining significant traction toward whatever passes for democracy. That’s not criticizing the Taliban nor do I necessarily believe it’s the right formula for Afghanistan ahead of a global imminent financial crisis and the dollar’s imminent demise.
Clearly, a political “consensus” for whatever chosen hybrid government model is preferential to other tried and failed political or social experiments.
I suggest British Foreign Secretary Dominic Raab’s recent trip to Pakistan is not favorable to denying US interests in Afghanistan’s political fortunes.
It’s not uncommon for nations to hold foreign currencies where domestic trade predominates in other than their own. In Ecuador and Panama, the USD takes prominence over their respective currencies. So shall we’re inclined to view the Chinese Yuan and/or the Russian ruble seeking the same realization. Rebuilding nations and global financial events almost guarantee it.
China’s recent announcement of a digital gold-yuan linkage next February assures projects an ominous, almighty dollar negative outcome.
https://www.indianpunchline.com/reflections-on-events-in-afghanistan-
11/
The Taliban realize that the 40-plus military aircraft that left Afghanistan airspace last week, bound for at least 4 countries may wreak havoc on foreign relations. I doubt the Taliban is expecting their return, but prefer they be destroyed or not fall into ISIS-K or US hands.
If you’re a president of one of these sovereigns, I can think of two major world leaders you’ll be required to answer to.
We can call this the Afghanistan principle: perhaps wealthy Americans should negotiate with banks and the UN to see if accessing their money would be in humanity’s interest. I guess we can let them have a little bit of it if they promise to behave.