Joe Biden administration seeks to block Taliban from accessing reserves from IMF

The IMF's announcement came amid pressure from the U.S. Treasury, which holds a controlling share in the Fund, to ensure that Afghanistan's share of a Special Drawing Rights reserves allocation scheduled for Monday not fall into Taliban hands.

Reuters
August 19, 2021 / 08:39 AM IST

The International Monetary Fund said on Wednesday it suspended Afghanistan's access to IMF resources, including around $440 million in new monetary reserves, due to a lack of clarity over the country's government after the Taliban seized control of Kabul.

The IMF's announcement came amid pressure from the U.S. Treasury, which holds a controlling share in the Fund, to ensure that Afghanistan's share of a Special Drawing Rights reserves allocation scheduled for Monday not fall into Taliban hands.

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"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," an IMF spokesperson said in an emailed statement.

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