On August 1, President Joe Biden announced that al-Qaeda leader Ayman al-Zawahiri was killed in a US drone strike in Kabul on July 31. Secretary of State Antony Blinken said the Taliban "grossly" violated the Trump-era Doha agreement by hosting and sheltering the al-Qaeda leader. The Wall Street Journal reported last week, citing US officials, that Washington will not release any of the $7 billion in Afghan central bank assets held on American soil and has halted relevant talks with the Taliban.
Appeals have been growing for Washington to unfreeze at least half of the $7 billion in Afghan assets stored in the US Federal Reserve Bank in New York to provide life-saving aid to Afghans, 97% of whom are living under the poverty line. A US delegation met with Taliban negotiators in Uzbekistan in July but no progress was made despite the US admitting that the work needed to be accelerated.
Washington decided to continue talks amid growing concerns over a humanitarian crisis, Reuters reported.
US State Department and Treasury officials held a special briefing for independent analysts in mid-August, declaring their intention to pursue the talks despite frustration over the situation, two sources said. One of them noted that the Taliban and the Afghan central bank are not acting swiftly on the issue.
Half of the $7 billion held on US soil will be released into a humanitarian trust fund and potentially could be used to pay Afghanistan's World Bank arrears and for printing the national currency and passports, according to the report. The other $3.5 billion is being contested in lawsuits against the Taliban over the 9/11 attacks, the report said.
The funds also could go to recapitalizing the Afghan central bank and bolstering its ability to improve the economy. However, after the murder of al-Zawahiri, the State Department excluded recapitalizing as "a near-term option," expressing concerns that the Taliban may send money to terrorists.
Two sources noted that the talks became more difficult because of Taliban resistance to several demands. They also mentioned the importance of replacing two militants in the central bank, one of whom is under US and UN sanctions. The Taliban have not formally agreed to establish an anti-money laundering monitor at the bank, one of the sources added.
*The Taliban is under UN sanctions for terrorist activities.
**Al-Qaeda is a terrorist group banned in Russia.