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IMF, US restrict funds to Afghanistan after Taliban takeover
Despite its swift takeover of the government in Afghanistan, the Taliban will not have access to most of the nation’s cash and gold stocks, while the IMF announced it won’t provide aid.
A spokesperson for the Washington-based crisis lender on Wednesday said it had decided to withhold its assistance to Afghanistan amid uncertainty over the status of the leadership in Kabul.
“There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access… IMF resources,” the official said.
Central bank governor Ajmal Ahmady said on Twitter the Da Afghanistan Bank (DAB) had around $9 billion in reserves, but most of that is held overseas, out of reach of the Taliban.
“As per international standards, most assets are held in safe, liquid assets such as Treasuries and gold,” said Ahmady, who fled the country on Sunday, fearing for his safety as the Taliban swept into the capital.
The US Federal Reserve holds $7 billion of the country’s reserves, including $1.2 billion in gold, while the rest is held in foreign accounts including at the Basel-based Bank for International Settlements, Ahmady said.
A US administration official told AFP on Monday that “any central bank assets the Afghan government have in the United States will not be made available to the Taliban.”
Amid reports the Taliban were quizzing central bank staff on the location of the assets, Ahmady said, “If this is true — it is clear they urgently need to add an economist on their team.”
He repeated that Washington on Friday had cut off cash shipments to the country as the security situation deteriorated, which may have fueled reports the Taliban stole the reserves since the country’s banks could not return dollars to account holders.
“Please note that in no way were Afghanistan’s international reserves ever compromised,” and are held in accounts that are “easily audited,” Ahmady said.
No SDRs for Kabul
The IMF’s aid would include an existing $370 million loan program, as well as access to reserves in the form of Special Drawing Rights (SDR), the lender’s basket of currencies.
“As is always the case, the IMF is guided by the views of the international community,” the fund official said.
The International Monetary Fund has taken similar action against other regimes not recognized by a critical mass of member governments, as in the case of Venezuela.
The IMF is set to distribute 650 billion in SDRs on August 23 to all eligible members, of which Afghanistan’s share was valued at about $340 million, Ahmady said.
The IMF in June released the latest installment of the $370 million loan to Afghanistan approved in November and aimed at helping support the economy amid the Covid-19 pandemic.
The World Bank has more than two dozen development projects ongoing in the country and has provided $5.3 billion since 2002, mostly in grants.
The status of those programs is unclear as the development lender works to pull staff out of the country.
An internal memo to World Bank personnel obtained by AFP said “senior management is working around the clock to arrange an urgent evacuation of our staff and their family members.”
Meanwhile, Western Union announced Wednesday it was temporarily cutting off wire transfers to the country — another vital source of cash for the people.
Twelve inmates have escaped from the Federal Correctional Centre in Kotonkarfe, Kogi State, following an early morning jailbreak on Monday.
Confirming the incident, the Kogi State Commissioner for Information, Kingsley Fanwo, described it as “unfortunate” and assured the public that the government, in collaboration with security agencies, was taking measures to prevent a recurrence.
According to Fanwo, law enforcement officers have already re-arrested one of the escapees.
“The theory that the inmates escaped through the tower without causing any structural damage raises serious concerns. This calls for a thorough investigation to determine the exact circumstances of the escape, arrest the fleeing inmates, and identify possible saboteurs within the system,” he stated.
The commissioner further disclosed that Governor Usman Ododo has directed security agencies to ensure that such breaches do not happen again.
“We call on the public to report any suspicious individuals in their communities. Anyone found harbouring an escaped inmate will be held accountable,” Fanwo warned.
Reassuring residents, he added: “There is no cause for panic. We encourage citizens to go about their daily activities as normal, knowing that the security of lives and property remains our top priority.”
Authorities have yet to disclose further details about the escapees or ongoing efforts to apprehend them.
The United States has announced the termination of legal status for over 500,000 immigrants, ordering them to leave the country within weeks, as President Donald Trump pushes forward with what he calls the largest deportation campaign in American history.
The sweeping directive, issued on Friday, affects approximately 532,000 Cubans, Haitians, Nicaraguans, and Venezuelans who arrived under a programme launched by Trump’s predecessor, Joe Biden, in October 2022 and later expanded in January 2023.
According to the Department of Homeland Security (DHS), the affected immigrants will lose their legal protections 30 days after the order is published in the Federal Register on Tuesday. This means they must leave the United States by 24 April, unless they secure another immigration status permitting them to stay.
Welcome.US, an organisation that supports asylum seekers, has urged those impacted to “immediately” seek legal counsel regarding their options.
A Reversal of Biden’s Immigration Policy
The Processes for Cubans, Haitians, Nicaraguans, and Venezuelans (CHNV) programme, introduced in January 2023, allowed up to 30,000 migrants per month from these nations to enter the United States for two years. The initiative was designed to offer a “safe and humane” alternative to the dangerous crossings at the US-Mexico border, which had seen a surge in arrivals.
However, the DHS reiterated on Friday that the programme was never meant to provide permanent residency.
“Parole is inherently temporary, and parole alone is not an underlying basis for obtaining any immigration status, nor does it constitute an admission to the United States,” the agency stated.
Mass Deportations Under Trump
Trump, who has made immigration control a cornerstone of his presidency, has vowed to crack down on migrants—particularly those from Latin America.
Last week, he invoked rare wartime legislation to deport more than 200 alleged members of a Venezuelan gang to El Salvador, a country that has controversially offered to imprison both migrants and U.S. citizens at a discounted rate.
The latest order signals Trump’s intent to follow through on his hardline immigration policies, raising concerns among human rights advocates about the humanitarian impact of such mass deportations.
Tens of thousands of malnourished Nigerian children face a dire future as lifesaving food supplies are set to run dry, the United Nations Children’s Agency (UNICEF) warned on Friday, attributing the crisis to a funding shortfall exacerbated by U.S. foreign aid cuts under President Donald Trump’s administration.
The agency said that within the next two months, 80,000 children suffering from severe acute malnutrition in Nigeria could lose access to vital treatment, while a total of 1.3 million children under five in Nigeria and Ethiopia remain at risk of starvation this year.
“Without new funding, we will run out of our supply chain of Ready-to-Use-Therapeutic-Food by May, and that means that 70,000 children in Ethiopia that depend on this type of treatment cannot be served,” UNICEF’s Deputy Executive Director, Kitty Van der Heijden, said in a video press briefing from Abuja. “Interruption to continuous treatment is life-threatening.”
The situation in Nigeria is even more urgent, with UNICEF warning that food supplies for malnourished children could be exhausted as early as the end of this month. Van der Heijden recounted a harrowing experience at a hospital in Maiduguri, where she saw a child so severely malnourished that her skin was peeling off.
U.S. Aid Suspension Escalates Crisis
UNICEF’s funding crisis follows a significant drop in international donor contributions in recent years, compounded by the U.S. government’s decision to halt all foreign aid for 90 days upon Trump’s return to the White House in January.
According to Reuters, the U.S., a major donor to UNICEF, implemented sweeping suspensions on USAID programmes worldwide, disrupting the delivery of essential food and medical aid. The impact has been catastrophic, with global humanitarian efforts thrown into disarray.
“This funding crisis will become a child survival crisis,” Van der Heijden warned, adding that the abrupt nature of the cuts left UNICEF unable to cushion the impact.
Health Services Crippled in Ethiopia
Beyond food shortages, UNICEF highlighted the devastating effects of the funding crunch on health services in Ethiopia. Programmes providing nutrition and malaria care for pregnant women and children have suffered, with 23 mobile health clinics shut down in Afar, leaving only seven operational.
As the crisis unfolds, humanitarian organisations continue to urge global donors to step in and prevent a full-blown catastrophe. Without urgent intervention, tens of thousands of children in Nigeria and Ethiopia may not survive the coming months.
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