US freezes Assets of the Afghan Central Bank

Afghanistan is one of the poorest countries in the world, according to the World Bank, and it is heavily reliant on foreign aid, which accounts for nearly a third of the government's budget.
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US freezes Assets of the Afghan Central Bank

According to a US official, the US froze billions of dollars in Afghan Central Bank reserves held in US accounts.

β€œAny central bank assets owned by the Afghan government in the United States will not be made available to the Taliban,” the US official said.

The Federal Reserve Bank of New York and other US financial institutions are thought to hold the majority of the reserves, which include dollars, gold, and US Treasury bonds.

The decision was made by President Joe Biden's administration over the weekend, after the Taliban grabbed Kabul, the capital, following a ferocious offensive that swept across the city and ousted the government.

According to the International Monetary Fund (IMF), central bank reserves were $9.4 billion at the end of April.

Apart from freezing the assets, the US could also prevent international lenders such as the IMF and the World Bank from providing funding to Afghanistan.

Afghanistan is one of the poorest countries in the world, according to the World Bank, and it is heavily reliant on foreign aid, which accounts for nearly a third of the government's budget.