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U.N. aims to launch new Afghanistan cash route in February
The United Nations aims to kick start this month a system to swap millions of aid dollars for Afghan currency in a plan to stem humanitarian and economic crises and bypass blacklisted Taliban leaders, according to an internal U.N. note seen by Reuters.
Since the Islamic Emirate of Afghanistan (IEA) takeover in August, foreign financial assistance has stopped and international banks are wary of testing U.N. and U.S. sanctions on the IEA, leaving the United Nations and aid groups struggling to obtain cash even as they continue to receive humanitarian donations.
The U.N. explanatory note, written last month, outlines an “urgently needed” Humanitarian Exchange Facility (HEF). The United Nations has warned that more than half of Afghanistan’s 39 million people are suffering extreme hunger and the economy, education and social services are collapsing.
“The overall objective is to have the HEF up and running in February,” the note said. “Prior to the full establishment of the facility, we seek to facilitate several trial swaps, to demonstrate exactly how the mechanism will work.”
U.N. and humanitarian officials warn that the facility can be only a temporary measure until Afghanistan’s central bank begins operating independently and some $9 billion in foreign reserves frozen abroad are released.
But when that could happen is uncertain. The reserves held by the United States are tied up in legal action and Western governments are reluctant to release funds unless they see the IEA show greater respect for human rights, especially those of women and girls.
The HEF would allow the United Nations – which is seeking $4.4 billion for humanitarian assistance this year – and aid groups access to large amounts of the national currency, the afghani, held in the country by private businesses.
In exchange, the United Nations would use aid dollars – potentially tens of millions – to pay the businesses’ foreign creditors, thereby bolstering the flagging private sector and critical imports.
“The facility’s flow of funds would not require the movement of funds across the Afghan border,” the U.N. note said.
While the money bypasses the IEA, the note says the HEF will need the approval of the IEA-run central bank for “the flow of funds and the exchange rate used and the withdrawal of AFN cash deposited into AIB (Afghanistan International Bank) without any restriction.”
A spokesman for the IEA care-taker government confirmed that officials in Afghanistan were aware of the proposal for the HEF, but did not know the details or the procedure.
“We welcome any kind of humanitarian actions for the people of Afghanistan, but all actions should be taken according to Afghanistan’s laws and national interests,” Bilal Karimi told Reuters on Friday in response to a question on the HEF.
The United Nations does not comment on leaked documents, U.N. spokesman Stephane Dujarric said of the note. U.N. Secretary-General Antonio Guterres has said Afghanistan is “hanging by a thread” and long pushed for international action to combat the economic crisis hampering aid efforts.
Afghanistan’s economy has continued to deteriorate, with inflation for basic household goods reaching nearly 42% in January, compared to the year-earlier period, the World Bank said on Wednesday. Wages and demand for labor continued to decline, as did imports, which were down 66% compared to a year earlier, it said.
Aid groups and U.N. officials have been advocating for a cash swap mechanism, but the U.N. note seen by Reuters provides new details on how it will work.
Graeme Smith, a senior consultant for the International Crisis Group think-tank, told the U.S. Senate Foreign Relations Committee on Wednesday that an exchange facility is needed quickly, but only as a stopgap measure.
“It is not sufficient,” he said. “Nobody should be under any illusions that this substitutes for the normal functioning of a central bank.”
Complicating the response, IEA leaders have banned the use of foreign currency in a country where U.S. dollars were common. The United Nations has flown in shipments of $100 bills, but the central bank has not converted them, leaving the world body sitting on about $135 million in cash that it cannot use, a U.N. official said last week.
Those funds are held in Kabul in the vaults of AIB, the official said, the private bank that would play a role in the new cash swap system.
The security of the cash flights and limits on how much can be delivered are key reasons for starting the new exchange facility, the note said.
World Bank and U.N. officials have been working to finalize the HEF, including completing a risk assessment, seeking a U.S. Treasury license to protect international banks from sanctions, and hiring a private company to vet participants and guard against money-laundering, the note said.
David Miliband, head of the International Rescue Committee, said the consequences of Afghanistan’s economic crisis could be devastating, and he called for a change in U.S. and international policy toward the country.
He told the Senate committee on Wednesday: “Current policy will indeed mean that a starvation crisis kills … more Afghans than the past 20 years of war.”
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UNESCO warns Afghanistan risks losing an entire generation of professionals as girls’ education ban continues
An estimated 2.4 million girls in Afghanistan are currently excluded from secondary education, while no girls enrolled in universities in 2026.
The United Nations Educational, Scientific and Cultural Organization (UNESCO) has warned that continued restrictions on girls’ and women’s education in Afghanistan could deprive the country of an entire generation of skilled professionals, particularly in education, healthcare and other essential sectors.
Hoda Jaberian, UNESCO’s Education in Emergencies Programme Coordinator, said Afghanistan cannot afford to lose another generation of learners, stressing the urgent need to restore access to education for girls and women.
According to a United Nations report published in November, an estimated 2.4 million girls in Afghanistan are currently excluded from secondary education, while no girls enrolled in universities in 2026.
Since the Islamic Emirate of Afghanistan returned to power in 2021, girls have been barred from attending secondary schools beyond Grade Six. Restrictions were further expanded in December 2022, when women were prohibited from attending universities, followed by a ban on women’s education at medical institutions in December 2024.
Jaberian emphasized that the immediate priority must be reopening schools to girls and allowing women to return to the formal education system, noting that alternative learning opportunities cannot replace regular schooling.
She also called for greater support for teachers, improved educational materials, stronger teaching standards and better data collection and planning to strengthen Afghanistan’s education system.
UNESCO warns that prolonged restrictions could have serious consequences for Afghanistan’s future, limiting the country’s ability to train the teachers, doctors and other qualified professionals needed for national development.
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Afghan embassy in Kuwait discusses situation of Afghan prisoners with Kuwaiti officials
During the meeting, both sides held constructive discussions on the condition of Afghan prisoners in Kuwait.
The acting head of Afghanistan’s Embassy in Kuwait, Mohammad Shafiq Khatib, has met with senior Kuwaiti officials to discuss the situation of Afghan nationals held in Kuwaiti prisons.
According to a statement from the Afghan Embassy in Kuwait, Khatib met with Abu Fahad Mansour Fayez Al-Barrak, Deputy Director of Kuwait’s Prisoners Affairs Department, and Ali Abbas, an official responsible for legal affairs.
During the meeting, both sides held constructive discussions on the condition of Afghan prisoners in Kuwait.
The embassy did not provide further details about the specific issues raised or any agreements reached during the meeting.
The meeting comes as part of diplomatic engagement between Afghanistan and Kuwait on matters concerning Afghan nationals and their welfare abroad.
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Ancient treasures unearthed at Kabul’s historic Bala Hissar
The fortress suffered extensive damage during centuries of conflict, particularly the Second Anglo-Afghan War in 1879.
Archaeologists excavating Kabul’s historic Bala Hissar fortress have uncovered remarkable remains, including a Mughal-era palace, evidence of ancient Buddhist monasteries and a mysterious star-shaped pool, offering fresh insight into more than 2,000 years of Afghanistan’s history.
The discoveries include palace ruins featuring wall paintings, bathing facilities and what is believed to be a royal throne. Researchers also found Buddhist sculptures and monastery-related structures, pointing to Kabul’s importance as a religious and cultural centre before the Islamic period.
Other artefacts include ancient coins, Islamic ceramics, oil lamps and pottery, revealing how communities lived across different periods. Excavations are underway in five areas, with one trench reaching approximately 11 metres below ground.
Bala Hissar served as a royal residence, administrative centre and military stronghold, including during the Mughal era after Emperor Babur captured Kabul in 1504.
The fortress suffered extensive damage during centuries of conflict, particularly the Second Anglo-Afghan War in 1879.
The Aga Khan Trust for Culture has led conservation and archaeological work at the site since 2018, using modern technologies such as ground-penetrating radar and 3D laser scanning.
Large sections remain unexplored, and archaeologists believe further excavations could reveal more about Afghanistan’s rich cultural, religious and military heritage.
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