Joe Biden issues order extending freeze on Afghanistan’s foreign reserves

In a message to Congress on the continuation of the “National Emergency With Respect to the Widespread Humanitarian Crisis in Afghanistan and the Potential for a Deepening Economic Collapse in Afghanistan,” US President Joe Biden said on Wednesday that Afghanistan’s foreign reserves would remain frozen beyond February 11.

Biden issued the original executive order on the humanitarian crisis in Afghanistan and the threat arising from it on February 11, 2022.

In an order posted to the White House’s website, Biden said: “The widespread humanitarian crisis in Afghanistan — including the urgent needs of the people of Afghanistan for food security, livelihoods support, water, sanitation, health, hygiene, and shelter and settlement assistance, among other basic human needs — and the potential for a deepening economic collapse in Afghanistan continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.

“In addition, the preservation of certain property of Da Afghanistan Bank (DAB) held in the United States by United States financial institutions is of the utmost importance to addressing this national emergency and the welfare of the people of Afghanistan.”

He said various “parties, including representatives of victims of terrorism, have asserted legal claims against certain property of DAB or indicated in public court filings an intent to make such claims.” This property, he said, is blocked in accordance with his executive order.

This comes after Afghanistan’s foreign minister Amir Khan Muttaqi again asked for the frozen assets to be released. At the “Afghanistan Regional Cooperation Initiative” meeting in Kabul a few weeks ago, Muttaqi called on the US to return the assets to DAB.

The US froze more than $9.5 billion soon after the IEA’s takeover in August 2021.
About $7 billion was being held in the Federal Reserve Bank in New York at the time of the first order. The rest was frozen by banks in other countries.

Of the $7 billion in the US, $3.5 billion has been transferred to a special fund in Switzerland and the remaining money is being held by the US.