Business
US sets up fund that could transfer frozen assets to Afghanistan
Washington is to set up a new fund that could eventually serve as a mechanism to free up Afghanistan’s frozen assets in order to promote economic stability in the country, senior US officials told CNN.
According to the officials, the Biden administration has worked with Switzerland and Afghan economists to set up this fund.
The US is moving $3.5 billion to the new “Afghan Fund,” but officials said they won’t release the money imminently because there is no trusted institution in Afghanistan to guarantee the funds will benefit the Afghan people, CNN reported.
Afghanistan’s central bank, Da Afghanistan Bank, issued a statement on Wednesday stating that it “deems any decision on allocation, using and transferring of the assets for irrelevant purposes unacceptable and wants it to be reconsidered.”
The statement notes that the assets are for the stability of currency, strengthening of the financial system and facilitating trade.
According to Turkey’s TRT news outlets, the funds will be transferred to the Bank of International Settlements in Basel, Switzerland, and the U.S. will set up a trusteeship to oversee the disbursement of the money for the purposes of both monetary policy and humanitarian aid.
“The [Da Afghanistan Bank] funds belong to DAB and should be returned to Afghanistan,” said Suhail Shaheen, a spokesperson for the IEA who serves as head of the political office.
“In this critical time when 99% of Afghans are living under the poverty line, it is direly needed that the reserve[s] return to the country.”
However, a US official told CNN that transferring these funds to the Afghan central bank will depend on two key factors: responsible management of the bank and assurances that the funds will not be diverted to terrorists or criminals.
“We do not have that confidence today,” said a senior US official. At minimum the Afghan central bank will need to “demonstrate its independence from political influence and interference.”
The officials also said DAB will also need to demonstrate it has “instituted adequate anti-money laundering and countering the financing of terrorism controls” and “complete a third party needs assessment and onboard a reputable third party monitoring,” the official explained.
CNN reported that it reviewed a letter sent to DAB this week from the US deputy secretary of the Treasury, which mapped out steps DAB needed to take. The letter cites the need for DAB to demonstrate independence from IEA influence and interference, among other expectations, CNN reported.
Earlier this year President Joe Biden signed an executive order allowing for the $7 billion in frozen assets from Afghanistan’s central bank to eventually be distributed inside the country and to potentially fund litigation brought by families of victims of the September 11, 2001, terror attacks.
Business
‘Made in Afghanistan’ expo opens in Tashkent
The Afghanistan Chamber of Commerce and Investment has announced that a major exhibition of Afghan products titled “Made in Afghanistan” is opening today (Wednesday) in Uzbekistan’s capital Tashkent.
According to the chamber, the expo—supported financially by the United Nations Development Programme—will run until Friday and aims to showcase Afghanistan’s production and export potential.
More than 60 booths have been set up by Afghan traders, featuring a wide range of products including carpets, dried and fresh fruits, saffron, pine nuts, cotton, precious and semi-precious stones, as well as beverages.
Officials from the chamber expressed hope that the expo will help expand trade relations between Afghanistan and countries in the region, particularly Uzbekistan.
Business
Afghani strengthens nearly 10% against US dollar amid banking sector reforms
The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.
Afghanistan’s central bank, Da Afghanistan Bank, says the national currency has appreciated by 9.93% against the US dollar during the year 1404, citing steady progress in the country’s financial and banking systems.
Officials attributed the gains to cautious monetary policies that have helped stabilise the Afghani against major global currencies while also boosting its value against the dollar.
The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.
As part of efforts to better manage liquidity, authorities also collected and destroyed worn-out banknotes in circulation. At the same time, officials reported growth in electronic banking, with digital payment usage rising in recent months.
Central bank spokesperson Haseebullah Noori said initiatives are underway to broaden access to banking services nationwide, including the wider rollout of Islamic banking options.
Analysts welcomed the stabilisation efforts but stressed the need to address ongoing challenges facing domestic banks, including the impact of international financial sanctions on Afghanistan.
They added that expanding Islamic banking could help draw more savings into the formal financial system, noting that a significant share of personal wealth remains outside banks. Bringing those funds into the sector, they said, could inject billions of Afghanis into the economy and further support financial stability.
Business
Uzbekistan delivers over 290 tons of aid to Afghanistan
The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.
Uzbekistan has delivered more than 290 tons of humanitarian aid to Afghanistan, according to the country’s Ministry of Foreign Affairs.
The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.
The shipment includes essential food supplies such as flour, rice, wheat, vegetable oil, instant meals, pasta, and confectionery. An official handover ceremony was held in the border town of Hairatan.
Local officials, including Balkh province representatives and authorities from Hairatan, expressed appreciation for the continued support, acknowledging Uzbekistan’s efforts to assist the Afghan people.
Among those present at the ceremony were Uzbekistan’s Ambassador to Afghanistan, Oybek Usmanov, and Surkhandarya regional governor Ulugbek Kosimov.
The aid delivery underscores Uzbekistan’s ongoing humanitarian engagement and its broader efforts to promote regional cooperation and stability.
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