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Taliban push to unlock Afghan billions abroad -Breaking

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© Reuters. A mother shop with her kids at the Kabul Market, Afghanistan Oct 29, 2021. REUTERS/Zohra Bensemra

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By John O’Donnell

FRANKFURT, Reuters – Afghanistan’s Taliban government demands the release of millions of dollars in central bank reserves. The drought-stricken country is facing a cash crunch and mass starvation as well as a new immigration crisis.

Afghanistan held billions of dollars worth assets abroad with the U.S. Federal Reserve. But, this money has been frozen ever since August when the Islamist Taliban overthrew the Western-backed government.

The finance ministry spokeswoman said that they would protect human rights and educate women. He was looking for additional funding to augment the existing humanitarian aid, which he stated offered little relief.

The Taliban regime of 1996-2001 saw women being excluded from both paid work and education. Women were usually required to cover up and go with a man relative when leaving home.

The money is the Afghan nation’s. Ahmad Wali Haqmal, a ministry spokesperson told Reuters that they will accept their own money. “Freezing the money is not ethical and it is against international law and values.

A top official at the central bank called for Germany and other European countries to share their reserves in order to prevent an economic crash that could lead to mass migration to Europe.

Shah Mehrabi, a member of the board of the Afghan Central Bank said that the situation was dire and that cash reserves are rapidly shrinking. There is sufficient money right now to sustain Afghanistan until the end.

Mehrabi said that Europe would be the most adversely affected if Afghanistan did not receive access to these funds.

You will be unable to buy bread, and you won’t have the money to purchase it. The people will feel desperate. He said that they would go to Europe.

As Afghanistan’s fragile economy collapses, the call for aid comes. After the departure of U.S. forces, many international donors and others left Afghanistan without funds that funded three quarters (or more) of its public spending.

According to the finance ministry, it collected approximately 400 million Afghanis per day ($4.4 million).

While the West wants to prevent a humanitarian catastrophe in Afghanistan, it has refused to recognize the Taliban government.

Haqmal stated that Afghanistan will allow women to receive education but not in the same schools as men.

He stated that human rights would be protected, but only within the context of Islamic law. This would exclude gay rights.

He said, “LGBT… It’s against Sharia Law.”

Mehrabi is hopeful that even though the United States said recently it won’t release nearly $9 billion, European countries could.

He claimed that Germany was holding half a trillion dollars in Afghan money, and that Germany should make those funds available to other European countries.

Mehrabi stated that Afghanistan required $150 million per month in order to prevent “imminent crisis”, and that prices and local currencies must be stable. He also said that an auditor could monitor any transfers.

Mehrabi stated that if the reserves are frozen, Afghan importers won’t be able pay their shipments. Banks will collapse and food stores will become empty.

He stated that approximately $431million of central bank reserve were with German lender Commerzbank, as well as an additional $94 million with Germany’s central bank, The Bundesbank.

A further $660 million has been held by The Bank for International Settlements. It is a umbrella organization for central banks around the world. None of the three refused to comment.

In August, after the United States pulled its troops out, Taliban took power back in Afghanistan. It was nearly 20 years since the Islamists were defeated by U.S. forces after Sept. 11 2001 attacks.



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