US halts talks with Taliban on freeing up Afghan assets

KABUL (Pajhwok): The US government has decided against unblocking the Afghan central bank’s foreign reserves of around $7 billion, a leading American newspaper says.

The Wall Street Journal reported on Monday the US had also halted negotiations with the Taliban on the funds after the killing of the al-Qaeda chief in Kabul.

The release of the reserves is vital to Da Afghanistan Bank efforts to restart key functions to check inflation, stabilise the afghani exchange rate and strengthen the economy.

US Special Representative Tom West told WSJ: “We do not see recapitalization of the Afghan central bank as a near-term option.”

The US diplomat believed the Afghan central bank did not have the safeguards and monitoring in place to manage the assets in a responsible manner.

PAN Monitor/mud