According to sources, United States President Biden is slated to release an executive order on Friday directing the transfer of $7 billion of Afghan assets blocked in the US economic system to support humanitarian aid in Afghanistan and compensation for 9/11 victims.
The decision would oblige US financial system to divide the assets into two parts with one to set aside $3.5 billion in assets for Afghan relief and basic necessities and the remaining $3.5 billion would be maintained in the US and used to support continued litigation by the 9/11 victims.
The White House’s National Security Council, according to the New York Times, led months of discussions on central bank funds including top officials from departments such as Justice, State, and Treasury.
When the Taliban took over Afghanistan in August, there was more than $7 billion in central bank funds with the Federal Reserve Bank of New York. The funds were made inaccessible for withdrawal since it was no longer clear who had legal permission to have access to that account.
After the Taliban took over Afghanistan, they nominated their own person to oversee the national bank and demanded that the money stored in New York be released immediately. However, they were not able to access the funds because they are still on international sanction lists.
Notably, the Taliban has repeatedly requested the release of Afghan assets blocked in the United States following their takeover of the nation, claiming that economic instability at home may lead to unrest internationally.
Several governments committed hundreds of millions of dollars in help but did not commit funding because they are apprehensive that the Taliban will agree to a more inclusive government.
Since the Taliban assumed control, the country’s long-struggling economy has been in a nosedive. Since August, the humanitarian situation in Afghanistan has deteriorated significantly.