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US Freezes $9.4 Billion Of Afghanistan Central Bank Reserves

Published: August 18, 2021
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After the humiliating exit of American troops, the US Treasury has freezed $9.4 billion of Afghanistan‘s Central Bank reserves.

The Taliban’s declaration that it had taken control of Afghanistan on Monday put central bank watchers around the world on alert.

The nation’s central bank, Da Afghanistan Bank, held $9.4 billion in international reserves as of April, according to the International Monetary Fund.

International observers are concerned about what the Taliban would do with the funds if it got its hands on the central bank’s assets.

“The vast majority of the Afghan Central Bank assets are not currently held in Afghanistan,” a person familiar with the matter tells Axios.

  • “Any Central Bank assets the Afghan government have in the United States will not be made available to the Taliban,” an administration official tells Axios.

Central banks usually hold reserves in gold or a widely held currency like the U.S. dollar. These reserves are used for transactions among central banks.

With NATO forces out of Afghanistan, the Russians will largely provide security in the region and China will be exploring the possibility of restructuring Afghanistan’s supply and trade chains after twenty years of war.

Although several potential routes exist along the Wakhan Corridor and via Tajikistan and Kyrgyzstan, here is why China is planning to link CPEC to Afghanistan.

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