Prominent economists from the US and elsewhere have called on Washington to return frozen central bank funds to Afghanistan.
Washington should release the assets of the Central Bank of Afghanistan that it froze last year after the Taliban took over and return it to the Afghan people, a group of more than 70 prominent economists said. Letters on Wednesday.
Economists and academics from the US, UK, India, France, Canada, Australia and Brazil say they have “deeply concerned” plain “The ongoing humanitarian and economic disaster in Afghanistan” and the role of America “Drive them.”
After the Taliban took over in August 2021, the US froze $7 billion in the foreign exchange reserves of the Central Bank of Afghanistan stored at the Federal Reserve Bank of New York. Another $2 billion has been frozen by the UK, Germany, UAE and several other countries.
An open letter to President Joe Biden and US Treasury Secretary Janet Yellen said the frozen assets were “critical” to the functioning of the Afghan economy, including facilitating imports. food and petroleum exports.
Currently, about half of the population of Afghanistan faces “Serious food insecurity”, The economists warned, adding that, while there were several factors that led to the dire economic situation in Afghanistan, the US and its allies froze assets. “Especially has contributed greatly to the economic collapse of Afghanistan.”
Economists and academics, including 2001 Nobel laureate in economics, Joseph Stiglitz, and former Greek finance minister, Yanis Varoufakis, have denounced the freeze as a “Coercive Measures” that prevents the Central Bank of Afghanistan (DAB) from doing “Its essential, normal functions.”
The letter also cited an assessment by the International Relief Committee – a global humanitarian relief association formed at the request of Albert Einstein – which warned that “the current humanitarian crisis could lead to many who died more than twenty years of war”.
The signers of the letter also criticized Biden’s decision to use half of the money frozen by Washington – $3.5 billion – to compensate American victims of Taliban terrorism, including 9/11. 9.
By all rights, the entire $7 billion belongs to the people of Afghanistan. This decision to split the money in half is arbitrary and unreasonable, and returning anything less than the full amount would undermine the recovery of a devastated economy.
Economists have condemned the Taliban government for some “Terrible Things” it has committed, including “The appalling treatment of women and girls, and minorities” but argue that it is “It is both morally condemnable and politically and economically reckless to impose collective punishment on the entire nation.”
Washington has so far not responded to the appeal. For about a year since the Taliban took over, Washington has refused to recognize the new government or return frozen funds. In July, Biden also canceled Afghanistan’s status as a ‘Main Non-NATO Ally’.
In February, when Biden signed an executive order promising $3.5 billion to compensate American victims of Taliban terrorism, the Taliban blasted the move as “Theft” and warn that it will “Review” their policy towards Washington if it continues with its plan.
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