afghans-push-back-against-bidens-proposal-7-billion-frozen-assets

Afghans Push Back Against Biden’s Proposal for $7 Billion in Frozen Assets

Following the announcement that President Biden will redirect $7 billion in central banking funds from Afghanistan to humanitarian relief and 9/11 victims, Afghans are reportedly pushing back against the proposal. 

According to the New York Post, protesters gathered in Kabul, Afghanistan on Saturday (February 12th) to protest against President Biden’s decision to free up $3.5 billion in frozen Afghan assets held in the U.S. to give to the relatives of the 9/11 victims in America. The protesters outside of Kabul’s Eid Gah Mosque reportedly state that the money should go to Afghans. This would be compensation for the tens of thousands of Afghans who died during the 20-year war. 

Biden signed an order to allocate another $3.5 billion in Afghan assets to go into a United Nations trust fund. This will provide humanitarian aid in Afghanistan.

Meanwhile, critics of President Biden’s plan are also skeptical about how the United Nations will actually use the funds. Torek Farhadi, a financial adviser to Afghanistan’s former U.S.-backed government, questions the United Nations’ control of the Afghan reserves. He states that the money is not for humanitarian aid. But it is to back up the country’s currency; help in monetary policy; and manage the country’s balance of payment. He says he’s not sure if President Biden’s order is actually legal as well. 

“These reserves belong to the people of Afghanistan, not the Taliban,” Farhadi explains. “Biden’s decision is one-sided and does not match with international law. No other country on Earth makes such confiscation decisions about another country’s reserves.”

Afghanistan has approximately $9 billion in assets overseas. This includes the $7 billion in the United States. While the rest is mainly in Germany, the United Arab Emirates, and Switzerland.

President Biden Releases Fact Sheet About His Executive Order to Preserve Certain Afghanistan Central Bank Assets for the People of Afghanistan 

President Biden also shares a fact sheet about his executive order to preserve certain Afghanistan central bank assets for the people of Afghanistan. The world leader explains that certain U.S.-based assets belonging to Afghanistan’s central bank, Da Afghanistan Bank (DAB) are being used to benefit the Afghanistan people.

President Biden states, “The [Executive Order] will block the property of DAB held in the United States by U.S. Financial institutions. And require U.S. financial institutions to transfer this property into a consolidated account held at the Federal Reserve Bank of New York. The Administration will seek to facilitate access to $3.5 billion of those assets for the benefit of the Afghan people. And for Afghanistan’s future pending a judicial decision.”

Biden also says that this is one step forward in the U.S.’s effort to authorize the transfer of a significant portion of funds to meet ht needs of the Afghan people. “The E.O. is designed to provide a path for the funds to reach the people of Afghanistan. While keeping them out of the hands of the Taliban and malicious actors.”