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US sets up Afghan relief fund with frozen central bank money

September 14, 2022


The U.S. and Swiss governments and Afghan economics experts said Wednesday they will transfer $3.5 billion in frozen funds from Afghanistan’s central bank to use for the country’s people as hunger grips every province there.

Notably, the Taliban government will not be a part of the new Afghan Fund, which will maintain its account with the Bank for International Settlements in Switzerland.

In the interim, Afghanistan’s central bank, which in February had $7 billion in frozen funds, “must demonstrate that it has the expertise, capacity, and independence to responsibly perform the duties of a central bank,” the U.S. Treasury and State departments said Wednesday in a joint statement. “Robust safeguards have been put in place to prevent the funds from being used for illicit activity.”

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