The Biden administration is trying to prevent $ 450 million from flowing into the Taliban | MCUTimes

The Biden administration is trying to prevent $ 450 million from flowing into the Taliban

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.

The dispute concerns a previously planned allocation of the IMF’s own currency, known as Special Drawing RightSDRs can be exchanged for US dollars, euros, yen, Chinese yuan and sterling. The value of an SDR is set every day based on a basket of currencies.

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.

“Not sure if this allocation will continue now,” Adjmal Ahmady, acting governor of the Central Bank of Afghanistan, said on Twitter on Wednesday. Ahmady said he fled the country on Sunday when the government collapsed.
Typically, when there is a dispute over who is in power in a nation to receive SDRs, the IMF examines its members on how to proceed. In 2019, the IMF cut Venezuela from $ 400 million in cash held by the funds after a majority of its members refused to recognize the government of Nicolas Maduro.

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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