INSUBCONTINENT EXCLUSIVE:
Afghanistan&s central bank, Da Afghanistan Bank (DAB), has slammed Washington&s decision to create a new international financing mechanism
to distribute $3.5 billion worth of Afghanistan&s frozen assets, claiming the move was &unacceptable&.On Wednesday, the US State Department
announced that Washington, in coordination with international partners including the Government of Switzerland and Afghan economic experts,
has established the Afghan Fund, which will see the money transferred to a Swiss bank.On Thursday, DAB issued a statement asking for the
decision to be reconsidered.Da Afghanistan Bank has measured any decision regarding the allocation, use or transfer of these reserves to
achieve unrelated goals as unacceptable and requested [the US] to be reconsider it,& the statement said.Da Afghanistan Bank&s foreign
exchange reserves are the property of the Afghan people and have been used for many years in the light of the law to maintain monetary
stability, strengthen the financial system and facilitate trade with the world.In a press briefing on Wednesday night, State Department
spokesman Ned Price said: &Today, the Department of State and the Department of the Treasury, in coordination with international partners
including the Government of Switzerland and Afghan economic experts, announced the establishment of a fund to benefit the people of
Afghanistan.This fund will protect and preserve the Afghan central bank reserves, while making targeted disbursements to help stabilize
Afghanistan&s economy and, ultimately, support its people and work to alleviate the worst effects of the humanitarian crisis,& he said.He
stated the Islamic Emirate of Afghanistan (IEA) is ¬ a part of this financing mechanism and resources disbursed will be for the benefit
of the Afghan people, with clear safeguards and auditing in place to protect against diversion or misuse.He said however that the Afghan
Fund is &explicitly not intended to make humanitarian disbursements
The Afghan Fund itself is to facilitate macroeconomic stability inside Afghanistan.This is not what that fund is for
This fund is to provide macroeconomic stability in Afghanistan that will enhance the effectiveness of humanitarian assistance from the
United States and other donors.Former president of Afghanistan, Hamid Karzai, also disagreed with the decision and said any move to transfer
the money to a third country was unacceptable and the assets should remain the &national treasure of the people& of Afghanistan.Some experts
however believe that by transferring the money to a fund of this nature is opening the way for wastage and the Afghan people will ultimately
pay the price.From my point of view, the decision of the US government is very cruel to the Afghan national bank and Afghans should not be
treated this way,& said Taj Mohammad Talash, an economic analyst.The post IEA opposes establishment of new fund to handle frozen assets
first appeared on Ariana News.
