The vast majority of Afghanistan’s government budget comes from the United States and other foreign countries accounting for more than 80%. The Biden Administration freezing $7 billion in cash reserves chokes the Taliban reach.
The Biden administration froze Afghan government reserves held in U.S. banks on Sunday, blocking the Taliban from accessing billions of dollars shortly after the group seized the capital city of Kabul, leaving the U.S.-backed government in collapse, FOX Business confirmed.
Treasury Secretary Janet Yellen and officials in the Treasury Department’s Office of Foreign Assets Control made the decision, according to The Washington Post, which first reported the news. The State Department was also involved in discussions over the weekend, with White House personnel are monitoring the developments.
“Any Central Bank assets the Afghan government have in the United States will not be made available to the Taliban,” an administration official told FOX Business.
The Afghanistan Central Bank holds total assets of about $10 billion assets – $7 billion of which are stashed with the Federal Reserve Bank in New York. The Taliban on Monday tapped Haji Mohammad Idris as acting governor of the bank to help restore the nation’s war-crippled economy, with government workers unpaid, businesses closed and the growing cost of necessities like food and fuel.
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