IMF Blocks Afghanistan Access to Funds

The International Monetary Fund (IMF) said on Wednesday it had suspended Afghanistan's access to IMF resources, including about USD 440 million in new FUNDS, as the Taliban took control of Kabul.

The IMF announcement came amid pressure from the US Treasury, which holds the controlling stake in the fund to ensure that Afghanistan's share of the SDR reserve allocation scheduled for Monday does not fall into the hands of the Taliban.

"There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a result of which the country does not have access to the SDR or other IMF resources," an IMF spokesperson said in an emailed statement.

On Monday, the IMF is set to complete the allocation of USD 650 billion in Special Drawing Rights - the fund's exchange unit based on the dollar, euro, yen, pound and yuan - to its 190 member states in proportion to their quotas in the fund.

The IMF spokesperson said the fund will allocate 310 million SDRs on behalf of Afghanistan. It is valued at about USD 440 million based on Wednesday's SDR exchange rate

A US Treasury official said earlier on Wednesday that the department is taking steps to prevent the Taliban from accessing the country's SDR reserves.

Afghan and US officials said most of the assets of the Afghan Central Bank, worth about USD 10 billion, are held outside Afghanistan. An official in the Biden administration said earlier that any assets of the Central Bank of Afghanistan in the United States would not be made available to the Taliban.

White House National Security Adviser Jake Sullivan said on Tuesday that it was too early; to say whether the United States would recognize the Taliban as the legitimate ruling force in Afghanistan, referring to the "chaotic situation in Kabul."