The United States said it has set up a professionally run fund in Switzerland to manage $3.5 billion of Afghanistan's&nbsp;central bank's reserves that were frozen following the Taliban takeover of the country.

According to reports, the new Afghan Fund was created on Wednesday, and it would have an account at the Bank for International Settlements.

The primary aim of the creation of the fund is to strengthen Afghanistan’s macroeconomic stability, including covering Afghanistan's arrears in international financial institutions and paying for electricity imports, but it will not handle humanitarian aid or government salaries, the TRT World reported.

Around $7 billion of Afghanistan’s central bank foreign currency assets are held by the US and other foreign banks.

The decision to set up a fund comes months after intense negotiations to release the $3.5 billion Afghan funds that were set aside for Afghanistan by US President Joe Biden.

The remaining $3.5 billion has been withheld by the US Federal Reserve (FED) and it will be disbursed as compensation to the victims of the September 11 attacks, which led to the US invasion of Afghanistan in 2001, the report states.

A court decision on this matter is awaited and is expected in October.

Meanwhile, the Taliban have lambasted the United States for moving its reserves to the Bank of International Settlements (BIS),

A Taliban official with the country’s central bank (DAB) told TRT World, “We don't agree with the transfer of money to the account indicated, but [we wish for it] to be transferred to Da Afghanistan Bank (DAB).”

The spokesperson added that they are open to a third-party monitoring system as demanded by the US government.

(With inputs from agencies)

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The United States said it has set up a professionally run fund in Switzerland to manage $3.5 billion of Afghanistan's central bank's reserves that were frozen following the Taliban takeover of the country.

The United States said it has set up a professionally run fund in Switzerland to manage $3.5 billion of Afghanistan's central bank's reserves that were frozen following the Taliban takeover of the country. According to reports, the new Afghan Fund was created on Wednesday, and it would have an account at the Bank for International Settlements. The primary aim of the creation of the fund is to strengthen Afghanistan’s macroeconomic stability, including covering Afghanistan's arrears in international financial institutions and paying for electricity imports, but it will not handle humanitarian aid or government salaries, the TRT World reported. Around $7 billion of Afghanistan’s central bank foreign currency assets are held by the US and other foreign banks. The decision to set up a fund comes months after intense negotiations to release the $3.5 billion Afghan funds that were set aside for Afghanistan by US President Joe Biden. The remaining $3.5 billion has been withheld by the US Federal Reserve (FED) and it will be disbursed as compensation to the victims of the September 11 attacks, which led to the US invasion of Afghanistan in 2001, the report states. A court decision on this matter is awaited and is expected in October. Meanwhile, the Taliban have lambasted the United States for moving its reserves to the Bank of International Settlements (BIS), A Taliban official with the country’s central bank (DAB) told TRT World, “We don't agree with the transfer of money to the account indicated, but [we wish for it] to be transferred to Da Afghanistan Bank (DAB).” The spokesperson added that they are open to a third-party monitoring system as demanded by the US government. (With inputs from agencies) WATCH WION LIVE HERE

US moves $3.5 billion of Afghan bank's reserves to Swiss-based trust, Taliban furious

The Taliban will be denied access to any Afghan reserves held in US accounts, a US administration official told AFP on Monday.

As US forces were evacuating Afghanistan's capital after the Taliban's swift takeover, the official said, "Any Central Bank assets the Afghan government have in the United States will not be made available to the Taliban."

The central bank's gross reserves totaled $9.4 billion at the end of April, according to the International Monetary Fund.

But most of those funds are held outside of Afghanistan, according to a person familiar with the matter.

It was not immediately clear what share of the assets are held in the United States.

'Security has deteriorated'

The Taliban's seizure of power comes after NATO withdrew its 9,500-strong mission on the back of a decision from US President Joe Biden to pull out his troops.

Afghan president Ashraf Ghani flew out of the country on Sunday night as the insurgents encircled the capital, capping a military victory that saw them capture all cities in just 10 days.

Washington also could block aid to Afghanistan from multilateral lenders like the IMF and World Bank, as it has done with other countries with governments it does not recognize, like Venezuela.

The IMF in June released the latest installment of a $370 million loan to Afghanistan approved in November to help support the economy amid the Covid-19 pandemic.

At the time, the fund said the government had kept its economic program on track despite the fact "security has deteriorated and uncertainty has risen as the peace talks between the government and Taliban stalled, with the US and NATO troops set to withdraw by September."

The World Bank meanwhile has more than two dozen development projects ongoing in the country and has provided $5.3 billion to date, mostly in grants.

The Taliban will be denied access to any Afghan reserves held in US accounts, a US administration official told AFP on Monday. As US forces were evacuating Afghanistan's capital after the Taliban's swift takeover, the official said, "Any Central Bank assets the Afghan government have in the United States will not be made available to the Taliban.

The Taliban will be denied access to any Afghan reserves held in US accounts, a US administration official told AFP on Monday. As US forces were evacuating Afghanistan's capital after the Taliban's swift takeover, the official said, "Any Central Bank assets the Afghan government have in the United States will not be made available to the Taliban." The central bank's gross reserves totaled $9.4 billion at the end of April, according to the International Monetary Fund. But most of those funds are held outside of Afghanistan, according to a person familiar with the matter. It was not immediately clear what share of the assets are held in the United States. 'Security has deteriorated' The Taliban's seizure of power comes after NATO withdrew its 9,500-strong mission on the back of a decision from US President Joe Biden to pull out his troops. Afghan president Ashraf Ghani flew out of the country on Sunday night as the insurgents encircled the capital, capping a military victory that saw them capture all cities in just 10 days. Washington also could block aid to Afghanistan from multilateral lenders like the IMF and World Bank, as it has done with other countries with governments it does not recognize, like Venezuela. The IMF in June released the latest installment of a $370 million loan to Afghanistan approved in November to help support the economy amid the Covid-19 pandemic. At the time, the fund said the government had kept its economic program on track despite the fact "security has deteriorated and uncertainty has risen as the peace talks between the government and Taliban stalled, with the US and NATO troops set to withdraw by September." The World Bank meanwhile has more than two dozen development projects ongoing in the country and has provided $5.3 billion to date, mostly in grants.

Taliban will not get access to Afghan reserves held in US: Official

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US moves $3.5 billion of Afghan bank's reserves to Swiss-based trust, Taliban furious

Taliban will not get access to Afghan reserves held in US: Official