On the threshold of the first anniversary of the Islamic Emirate of Afghanistan (IEA) takeover, dozens of economic experts of the world have urged the U.S. to release the frozen billions in dollar of Afghanistan assets.
More than 70 world economists including Nobel Laureate Joseph Stiglitz in a letter have urged the U.S. President Joe Biden to release the frozen billions in dollars of Afghanistan assets.
The letter, also addressed to U.S. Treasury Secretary Janet Yellen, was signed by 71 economists and academic experts, many based in the United States as well as Germany, India and the United Kingdom. Among those who organized the letter was Yanis Varoufakis, the former Greek Minister for Finance; and Joseph Stiglitz, a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and is on the advisory board to the Washington-based think tank, the Center for Economic and Policy Research.
They urged foreign capitals needed to return the roughly $9 billion in Afghan central bank assets to Da Afghanistan Bank (DAB) to allow the economy to function.
“In order to mitigate the humanitarian crisis and set Afghanistan economy on a path toward recovery, we urge you to allow DAB to reclaim its international reserves,” according to the letter.
Afghanistan’s economy has plunged deep into crisis since the Islamic Emirate took over Afghanistan amid foreign troops withdrawal from the country. Economists believe the country is severely hampered by the inability of its central bank to function without access to its reserves, with DAB officials saying it has the ability to manage well if the frozen assets of Afghanistan are released. They say nearly 22.8 million people are facing with severely food insecurity and 3 million children are being threatened by increasing malnutrition.
Most recent talks between the U.S. and the Islamic Emirate of Afghanistan (IEA) on foreign reserves held between the U.S. delegation and acting Minister of Foreign Affairs of the IEA in the sideline of Tashkent meeting.
An Afghan economic expert Azarakhsh Hafizi says $5.9 billion of Afghanistan central bank’s assets are for keeping the value of Afghanistan stable not for expending. According to Hafizi, it is necessary that the money should not be used for ordinary budget, humanitarian aid and other relevant works.
“With the current economic crisis, the Afghani currency is almost stable, which is the blessing of the country’s assets,” Hafizi said, adding that if the assets are spent, the value of the Afghan currency would reduce.
It is worth mentioning that Da Afghanistan Bank (DAB) funds have been frozen in thirteen banks and eight countries since the collapse of the former government, paralyzing its operations that regulate all banking systems and money handling in Afghanistan.
Shukria Kohistani
