WASHINGTON: Hours after the United Nations sought transnational intervention to help a possible collapse of Afghanistan’s banks, the United States promised on Tuesday to look for options to‘ inoculate liquidity into the system without perfecting the Taliban.
On Monday, the United Nations Development Programme (UNDP) released a new situation report on Afghanistan, saying that the country’s fiscal and bank payment systems were in disarray.’
The report details the state of the banking and financial system previous to the political transition on 15 August 2021, as well as the current situation in the three months since.
“ Prompt and decisive action is urgently demanded, with detainments in decision-making anticipated to increase the cost of a banking system collapse – a grim dilemma,” the report warns.
“ We’re working veritably nearly with the UN … to find ways to offer liquidity to inoculate,” said US State Department Spokesperson Ned Price when asked at a news briefing if the US was willing to help help the prognosticated collapse.
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The United States, he said, was also working with other countries, “ and bilaterally and multilaterally as well, to see to it that the people of Afghanistan can take advantage of transnational support in ways that don’t flow into the resources of the Taliban.”
Mr. Price refocused out that the US has pledged$ 474 million of philanthropic backing to the people of Afghanistan this time alone, adding “ We know that the Afghan frugality, indeed before the fall of the former government, was in dire need of transnational support.”
Italicizing the need to continue furnishing philanthropic backing to Afghanistan, Mr. Price said “ We believe that we can … support the philanthropic requirements of the people of Afghanistan indeed as we continue to make clear to the Taliban the prospects that we’ve of them when it comes to the precedence issues that we ’ve laid out.”
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The United States, he said, wanted Afghanistan’s Taliban autocrats to ensure free passage for all, fulfill their counterterrorism commitments, cover mortal rights and form an inclusive government before establishing any ties with them.
The UNDP report on Afghanistan describes a banking system at a near- deadlock, with philanthropic interventions baffled by the country’s liquidity extremity, strengthened by a lack of confidence on the part of depositors and transnational requests. IMF protrusions cited in the report prognosticate a compression of over to 30 percent in the Afghan frugality for 2021-2022.
Total banking system deposits fell from 268 billion AFN (US$2.9 billion) at the end of 2020 to 194 billion (US$ 2 billion) in September of this time. Those may fall to 165 billion AFN (US$1.8 billion) by the end of 2021, a loss of roughly 40 percent.
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