US working with UN bodies to find 'creative ways' to infuse liquidity into Afghan economy

The United States on Monday informed that it is working with various UN bodies in a bid to find ways to allocate humanitarian aid to Afghanistan and ensure economic liquidity to alleviate the crisis in the nation. While speaking at a press briefing, US State Department spokesperson Ned Price said that Washington believes that Afghanistan is experiencing an acute humanitarian crisis that was pre-existing before the US withdrawal in mid-August. However, Price added the crisis has now become worse. 

Price said, “We are working with various UN bodies, including the UNDP to find creative ways that we can infuse not only humanitarian aid but also liquidity into the Afghan economy.”

Afghanistan's economy has been in free fall since the Taliban seized command of Kabul in mid-August. Most of the $9 billion in assets of the Afghan central bank is held in the US, and have been frozen. Moreover, the International Monetary Fund (IMF) has also suspended around $450 million, according to the Associated Press.

US lawmakers urge Biden to unfreeze Afghan assets  

Meanwhile, it is to mention that Price comments come in the backdrop of a letter to US President Joe Biden, urging him to unfreeze Afghanistan’s central bank reserves. According to Sputnik, the Democratic US House members in the letter said that they stand with American allies and humanitarian experts in requesting the Biden administration to avoid harsh economic measures that will directly harm Afghan families and children. 

"This means conscientiously but urgently modifying current US policy regarding the freeze of Afghanistan's foreign reserves and ongoing sanctions," the lawmakers said in the letter. 

Further, the US lawmakers warned that the war-ravaged nation’s dwindling economy and humanitarian collapse threatens to trigger a new refugee crisis throughout the region. They said that the US’ decision to freeze Afghanistan’s central bank reserves is contributing to high inflation and the closing of commercial banks and vital private businesses. The Democrats added that the US freeze of reserves also led to more deaths in 2022 than were lost in the last 20 years of the war in the country. 

(Image: AP)