The US has set up a fund in Switzerland to disburse $3.5bn of Afghan central bank reserves it froze after the US military withdrawal and Taliban takeover, amid growing fears about economic conditions in the country.
The Treasury announced the creation of the “Afghan fund” on Wednesday, saying it would have an account at the Bank for International Settlements in Switzerland.
Decisions about possible disbursements would have to be made by consensus, via a board of trustees comprised of one representative of the US government, one representative of the Swiss government and two Afghan economic experts.
US officials said any release of that money would be directed towards bolstering Afghanistan’s macroeconomic stability, including paying for electricity imports and covering arrears at international financial institutions, rather than for humanitarian aid.
The move follows months of uncertainty and controversy over the fate of…
