Economics
IMF Curbs Afghanistan’s Funding Access, Squeezing Taliban
- Nation cut off from reserves before global liquidity injection
- Fund cites absence of clarity within international community
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The International Monetary Fund said that the new government in Afghanistan is cut off from using fund reserve assets days before the nation was set to receive almost $500 million, depriving the Taliban of key resources.
The country has been in line to automatically receive new reserves, known as special drawing rights or SDRs, on Monday as part of a recently approved IMF plan to inject $650 billion of liquidity into the troubled global economy. While Afghanistan will still receive the assets, it won’t be able to use them because the new regime lacks international recognition, the IMF said.