U.S. to redirect Afghanistan’s frozen assets after Taliban rejects deal

The Biden administration on Wednesday announced it will create a new fund out of some of Afghanistan’s frozen central bank reserves, aiming to alleviate the country’s mounting humanitarian crisis without enriching the Taliban, which rejected previous attempts at a compromise deal earlier this year.

In a statement, the Treasury Department said a new oversight body will deploy $3.5 billion of Afghanistan’s central bank reserves to help stabilize the country’s ravaged economy. The fund — which will be run in part by Swiss government officials and Afghan economic experts — can be used to help the country pay for critical imports, such as electricity, and will not be accessible to Taliban officials, according to the department.

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