In the weeks leading up to the Taliban’s overthrow of Western-backed Afghan government, the central bank released a large amount of US currency, according to documents obtained by Reuters.
Economists from international financial institutions such as the World Bank and the International Monetary Fund (IMF) have criticized former bank officials for handling the crisis in two pages. Officials said the bank was running out of money before the Taliban seized power.
“FX (foreign currency) is stored in CB (central bank) warehouses in Kabul recently, which CB cannot meet … financial requests,” the report said, according to Reuters. “The main cause of the crisis is being mismanaged by the central bank before the Taliban take over.”
Shortly after the Taliban seized power, the IMF and the World Bank cut off Afghanistan’s access to global resources due to the ongoing instability of recognizing the Taliban as the country’s official government. The Biden administration has alarmed Afghan governments held in U.S. banks. in August.
Billions of Afghan government funds are reportedly being kept in the US
Sources close to the case told Reuters that the destroyed Afghan government relied on a $ 249 million remittance every month.
The chairman of the central banking review committee Shah Mehrabi, who remained in office after the Taliban coup, said the bank was trying to prevent the rush of Afghan money. Reuters noted that former central bank governor Ajmal Ahmady, who fled Afghanistan one day after Kabul’s fall, blamed a shortage of funds on a bank account for cooling overseas.
Ahmady stated that no money was stolen from any account.
The central bank is expected to provide aid from countries such as the US and said on Wednesday that it had finalized a plan to meet the needs of Afghanistan, Reuters reported.
According to a report obtained by Reuters, the bank has transferred some of its funds to other provincial branches, increasing deposits at these branches from $ 12 million in 2019 to $ 202 million by the end of 2020.
“Some of the money is said to have been lost (stolen) from ‘other’ regional branches,” the officials wrote.
Earlier this month, the United Nations urged countries around the world to launch a cold strike in Afghanistan, warning that a recession could occur and that the event could help terrorists seeking to rebuild the country.
“The economy should be allowed to breathe for several months, giving the Taliban the opportunity to demonstrate change and a genuine desire to do different things this time, especially from the face of human rights, gender and terrorism,” Deborah said. Lyons, the UN’s top ambassador to Afghanistan.