The Treasury Department is taking steps to prevent the Taliban from accessing IMF funds, a Treasury official told CNN on Wednesday.
They note that this would “provide nearly half a billion dollars in unconditional liquidity to a regime with a history of supporting terrorist acts against the United States and its allies.”
The GOP legislators, which include Rep. French Hill of Arkansas, requested an update from Yellen before noon. 17.00 Thursday.
The Minister of Finance can not act unilaterally here. It is a question of the broader membership of the IMF, which includes 190 member countries, including Russia, China and Iran.
If no action is taken, SDRs worth about $ 450 million will have to be allocated to Afghanistan as early as Monday, hitting bank accounts on Tuesday or Wednesday.
The situation is complicated by the fact that the IMF’s Executive Board is out of session right now. The IMF confirmed the figure at about $ 450 million, but declined to comment beyond that.
Even the apparent head of Afghanistan’s central bank is not sure what will happen next.
Since the collapse of the Afghan government, the United States, Britain and Canada have been quick to say they do not recognize the Taliban as the country’s legitimate government. But it is not clear where other key nations, including Russia and China, will stand by this.
The United States has already taken steps to prevent an even larger amount of cash from flowing to the Taliban. Officials told CNN earlier this week that the Treasury Department had essentially blocked assets held by the Afghan central bank from the Taliban’s reach.
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