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IMF suspends Afghanistan’s access to its resources

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Washington: In wake of the Taliban takeover of Afghanistan, the International Monetary Fund has suspended the country’s access to the IMF resources. This move comes amid lack of clarity over the country’s government.

“There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access SDRs or other IMF resources,” said an IMF spokesperson in an emailed statement. The spokesperson added, “As is always the case, the IMF is guided by the views of the international community.”

There has been pressure from the US Treasury, which holds a controlling share in the Fund, to prevent the Taliban from laying their hands on Afghanistan’s share of a Special Drawing Rights reserves, the allocation of which is scheduled for Monday when IMF completes a $650 billion allocation of SDRs. The SDRs are allocated to the 190 members in proportion to their shareholdings in the Fund.

Officials in the know of things say that most of the assets of the Afghan central bank are held outside the country, which may make it difficult for the Taliban to get access to them.

 

 

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