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UN urgently needs cash in Afghanistan, but struggles for solution
The United Nations cannot get enough cash into Afghanistan to deliver humanitarian aid to millions of people on the brink of starvation and is struggling to develop options to help stabilize the collapsing economy, U.N. officials said.
Ultimately political solutions are needed, a senior U.N. official told Reuters on condition of anonymity, an apparent reference to sanctions relief and for governments and institutions to free up billions of dollars of Afghan assets held overseas.
In the meantime U.N. agencies are scrambling to find ways to get large amounts of U.S. dollars into Afghanistan to combat a liquidity crisis that has taken hold since the Islamic Emirate of Afghanistan (IEA) ousted the Western-backed government in August.
The U.N. official shared with Reuters some of the options being suggested.
The delivery of U.S. dollars to Afghanistan has stopped since the IEA seized power and if countries or international financial institutions don’t step up then the United Nations might have to fill the gap, said the official.
One suggested option is using Afghanistan International Bank, which could bring in and store money, but there are issues with insurance, the U.N. official said.
The United Nations is also aware that no one option will work and several avenues to get enough cash into Afghanistan are needed, the official said.
U.N. Secretary-General Antonio Guterres has called for the International Monetary Fund to agree on waivers or mechanisms to get money into Afghanistan. The IMF has blocked the IEA from accessing some $440 million in new emergency reserves.
Much of the Afghan central bank’s $10 billion in overseas assets have been frozen as well, most of it in the United States. The U.S. Treasury has said there are no plans to release the money.
“We need to work together to make the economy breathe again and to help people survive,” Guterres said on Wednesday. “Injecting liquidity into the Afghan economy can be done without violating international laws or compromising principles.”
The United Nations has repeatedly warned that Afghanistan’s economy is on the brink of collapse and would likely further fuel a refugee crisis.
When asked about U.N. efforts to get cash into Afghanistan, Mary-Ellen McGroarty, head of the World Food Programme in Afghanistan, told reporters on Tuesday: “The U.N. collective is looking at what potential solutions we could have, but flying in money to the country is not on the table yet.”
“What we are using at the moment is the limited liquidity that is in the country,” she said. “But the longer this goes on … we’re finding it’s becoming more and more difficult.”
Some 8.7 million people are “one step away from starvation,” said McGroarty, adding: “There is a tsunami of destitution, incredible suffering and hunger spiraling out of control.”
The IEA is facing growing international pressure for an inclusive and representative Afghan government and to uphold human rights, particularly those of women and girls in return for international recognition and freeing up aid and reserves.
Donors and institutions are also seeking to avoid running afoul of U.N. and unilateral sanctions on the IEA.
The United Nations is appealing for countries “to provide humanitarian financial exemptions to allow funds to reach aid organizations in the country,” said U.N. spokesman Stephane Dujarric, without naming names.
U.N. agencies and aid groups are currently using informal money-moving networks – known as hawalas – and small amounts of cash in banks to pay staff salaries and for other smaller scale purchases, Dujarric told Reuters.
“These modalities are not sufficient for the large scale operations requiring cash payments or cash assistance in-country, however,” said Dujarric, adding that the United Nations was talking to international financial institutions to find a solution that would expand aid operations.
A key part of U.N. plans to inject money into Afghanistan is by providing cash directly to poor Afghan families.
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Iran-US talks make encouraging progress as framework for final agreement emerges
Earlier, US President Donald Trump warned that Washington could consider military action if Iran continues to support Hezbollah.
Iran’s senior negotiating team has returned to Tehran following nearly 18 hours of intensive discussions with United States officials in Switzerland, while technical experts remain in place to continue work on the Islamabad memorandum of understanding.
Mediators Pakistan and Qatar reported that the opening round of high-level negotiations yielded “encouraging progress,” with both sides agreeing to a roadmap designed to secure a comprehensive agreement within the next 60 days.
The diplomatic efforts come amid ongoing regional tensions. Earlier, US President Donald Trump warned that Washington could consider military action if Iran continues to support Hezbollah. In response, Iran’s chief negotiator, Mohammad Bagher Ghalibaf, urged the United States to avoid inflammatory rhetoric that could undermine the talks.
Meanwhile, Israeli Defence Minister Israel Katz said Israeli forces would remain deployed in southern Lebanon for as long as necessary, while Hezbollah pledged to respond to any breaches of the current ceasefire arrangement.
Despite the challenges, US Vice President JD Vance struck an optimistic tone, describing the negotiations as highly productive. He said a “very good foundation” had been laid for a final agreement and noted that negotiators had achieved significant progress, expressing confidence in the direction of the talks.
The latest developments have raised hopes that sustained diplomatic engagement could pave the way for a broader understanding between Tehran and Washington in the coming weeks.
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Germany reportedly agrees to accept six more IEA diplomats
Germany has reportedly agreed to accept six additional Islamic Emirate-appointed diplomats as part of an arrangement aimed at expanding deportation flights for Afghan nationals, according to a report by German broadcaster NDR.
The report, citing diplomatic sources, states that the agreement emerged from confidential talks held last week in Istanbul between representatives of the Islamic Emirate and senior officials from Germany’s Federal Ministry of the Interior.
Germany’s Interior Ministry confirmed that discussions had taken place at a “technical level” between ministry officials and representatives of the Islamic Emirate, but declined to provide details about the location or duration of the meetings.
According to NDR, the agreement would allow Germany to significantly increase deportations to Afghanistan. A ministry spokesperson said charter flights to Kabul are being expanded, with up to three deportation flights per month planned in the future. Authorities may also be able to deport individuals using regular commercial flights.
The report says the IEA had long linked cooperation on deportation flights to Germany’s willingness to accept additional Afghan diplomats. These officials are reportedly needed to verify the identities of Afghan nationals facing deportation and issue the necessary travel documents.
At present, only two IEA-appointed consular officials are operating in Germany. Arriving in 2025, they have reportedly assumed key responsibilities at the Afghan Embassy in Berlin and the Consulate General in Bonn.
German Interior Minister Alexander Dobrindt defended the government’s deportation policy, telling Bild am Sonntag that individuals who commit serious crimes after receiving protection in Germany should be returned to their home country.
“Anyone who abuses our protection and commits serious crimes here must seek their future in their home country,” Dobrindt said. “Our society has a legitimate interest in criminals leaving our country.”
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