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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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Haqqani: Ruler should not impose his views
Acting Interior Minister Sirajuddin Haqqani has said that religion should not be monopolized and the ruler should not impose his views on others.
Speaking at a madrassa in Kabul, Haqqani emphasized that the religious duty must be performed correctly and that the Islamic system should not distance people from religion but rather bring them closer.
He said that it is the responsibility of an Islamic system to prevent people from turning to corruption and apostasy.
“You should not think that because I am the ruler, everyone must accept my words and if someone does not accept my words, the sky will fall upon the Earth."
Haqqani said that if an Islamic system fails to prevent people from turning to corruption and apostasy, it would indicate the weakness of the system.
“If we prevent people from corruption and apostasy, we serve the Islamic system. If people turn to apostasy and become corrupt, it means that we are narrow-minded and have not been faithful to the Islamic system.”
Haqqani added that systems and policies change, but religion should not be insulted. He warned that no one should surrender in exchange for a post or money.
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Qatar and US to provide $50 million for education in Afghanistan
Education Above All (EAA) Foundation on Sunday signed an agreement with the United States Agency for International Development’s (USAID) Mission to Afghanistan to enhance access to primary and higher education for Afghanistan’s children and youth.
The agreement, signed Sunday at the Doha Forum, reaffirms a shared commitment to education as a fundamental right for all, particularly for marginalised and at-risk communities, a statement said.
Under this partnership, EAA Foundation, supported by Qatar Fund for Development (QFFD) and USAID will mobilise a combined $50 million in funding, equally contributed by both parties, to support the enrolment of over 100,000 out-of-school children and provide nearly 2,000 post-secondary school scholarships.
The partnership also focuses on co-operative research and strategic engagement with other stakeholders to strengthen Afghanistan’s education sector. Together the organisations will work to accelerate student enrolment, improve retention and create pathways to high quality education for at-risk Afghan youth.
Mohammed al-Kubaisi, acting CEO of EAA Foundation, said: "Collaborating with USAID on this crucial partnership is a vital step toward our shared vision of inclusive and equitable education for all. By working together, we can break down the barriers to accessing quality education, empower communities, and contribute to a brighter, more sustainable future. "
Joel Sandefur, USAID mission director for Afghanistan, said: “Ensuring sustained access to quality education for Afghan women and girls, fostering meaningful learning outcomes, and prioritising the safety and well-being of learners and educators are central to USAID’s mission. Through our partnership with Education Above All, we unite with like-minded partners committed to building a brighter and more prosperous future for all Afghans.”
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Afghanistan’s Islamic Emirate congratulates Syrians on Assad’s ousting
The Islamic Emirate of Afghanistan (IEA) congratulated the leadership of Hayat Tahrir al-Sham (HTS) and the people of Syria for the ousting of President Bashar al-Assad and the fall of Damascus.
According to a statement issued by the IEA’s foreign ministry, Afghanistan’s leaders “hope that the remaining phases of the revolution will be managed in a way that secures a peaceful, unified and stable system.”
The IEA also stated that it hoped the transition of power takes place in a “manner that lays the foundations of a sovereign and service-oriented Islamic government in line with the aspirations of the Syrian people.”
The ministry also stated that hopefully a general amnesty will be adopted and that conditions are created for the “return of millions of refugees”.
The IEA also called on “all foreign actors involved in Syria to adopt policies of positive engagement and cooperation, both with each other and with the new leadership, that enables Syria to embark on a path towards good governance, security and stability.”
Assad’s ousting
Syrian rebels on Sunday declared they had ousted Assad after seizing control of Damascus early in the day, forcing him to flee and ending his family's decades of autocratic rule after more than 13 years of civil war.
In what is considered a seismic moment for the Middle East, the rebels also dealt a major blow to the influence of Russia and Iran in Syria in the heart of the region - allies who had propped up Assad during critical periods in the war but were distracted by other crises recently, Reuters reported.
The rebels said they had entered the capital with no sign of army deployments.
The pace of events stunned Arab capitals and raised concerns about a new wave of instability in a region already in turmoil following the spread of conflict after the Hamas-led attack on Israel on Oct. 7, 2023, and the ensuing Gaza war.
Israeli Prime Minister Benjamin Netanyahu said on Sunday that Assad's fall was a direct result of blows that Israel has dealt to Iran and its ally Hezbollah.
French President Emmanuel Macron said "the barbaric state has fallen" and paid tribute to the Syrian people.
Daunting task ahead
However, Syria's new leaders will face the daunting task of trying to deliver stability to a diverse country with competing factions that will need billions of dollars in aid and investments to rebuild.
Syria's long civil war, which erupted in 2011 as an uprising against Assad's rule, turned cities to rubble and killed hundreds of thousands of people.
Reuters reports that one possible challenge could be a resurgence of Islamic State (ISIS) which imposed a reign of terror in large swathes of Syria and Iraq and directed external operations during its prime.
President Joe Biden's administration was monitoring developments but has not adjusted the positioning of the roughly 900 troops in Syria so far, US officials told Reuters.
Underscoring the lightning changes, Iran's embassy was stormed by Syrian rebels, Iran's English-language Press TV reported.
Iran, whose elite Revolutionary Guards have faced deadly Israeli strikes in Syria, gave a measured response, Reuters reported.
Its foreign ministry said Syria's fate is the sole responsibility of the Syrian people and should be pursued without foreign imposition or destructive intervention.
Lebanese-based Hezbollah, which provided crucial support to Assad for years, withdrew all of its forces from Syria on Saturday as rebel factions approached Damascus, two Lebanese security sources told Reuters on Sunday.
Assad, who had not spoken in public since the sudden rebel advance a week ago, flew out of Damascus for an unknown destination earlier on Sunday, two senior army officers told Reuters.
His whereabouts now - and those of his wife Asma and their two children - were unknown.
The Russian Foreign Ministry said Assad had left office and departed the country after giving orders for a peaceful handover of power.
The Syrian rebel coalition said it was continuing work to complete the transfer of power in the country to a transitional governing body with full executive powers.
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