The U.S. cancelled shipments of dollars headed for Afghanistan as the Taliban gained ground, to keep cash out of the group's hands, people familiar say
WASHINGTON—The Biden administration last week canceled bulk shipments of dollars headed for Afghanistan as Taliban fighters were poised to, part of a continuing scramble to keep hundreds of millions of dollars out of the hands of the terrorist group, according to people familiar with the matter.
“Any central bank assets the Afghan government has in the United States will not be made available to the Taliban,” a Biden administration official said.several provincial areas across the country and made its way toward Kabul last week, the U.S. Treasury Department made an emergency decision to halt shipment of the sealed pallets of cash, shipped by the Federal Reserve Bank of New York, as they were flown to Afghanistan. Although the U.S.
Ajmal Ahmady, Afghanistan’s central bank chief, who fled the country on Sunday, said in an interview that he learned on Friday that no more dollar shipments would be arriving, but he declined to comment further on the decision. He said the central bank has approximately $9 billion in reserves, nearly all of which are held outside the country.
Federal Reserve Chairman Jerome Powell. Among other steps, the U.S. is blocking Taliban access to government accounts managed by the Fed.Mr. Ahmady said that bank officials began to reduce the amount of cash, including U.S. dollars, held at bank branches in provincial centers earlier this month amid concerns over the Taliban’s advance. By the time the first major provincial capital fell to the Taliban nearly two weeks ago, nearly all U.S. dollars had been repatriated, he said.
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