In response to the dire humanitarian situation in Afghanistan following the Taliban's takeover in August 2021, the United Nations (UN) has undertaken efforts to deliver essential aid to the country. Despite challenges posed by sanctions and a crippled banking sector, the UN has managed to transport more than $2.9bn to Afghanistan for humanitarian assistance, SIGAR reported.
A report from the Special Inspector General for Afghanistan Reconstruction (SIGAR) highlighted the critical role of the UN in purchasing and transporting cash to fund humanitarian operations in Afghanistan. With the international community wary of engaging with Afghanistan's banking sector due to concerns over violating sanctions, the UN stepped in to address the urgent needs of the Afghan people.
As per SIGAR's findings, the UN, in consultation with the U.S. Department of State and Treasury, initiated the transportation of U.S. currency into Afghanistan to cover operational and programming costs associated with delivering humanitarian aid. Since August 2021, the UN has purchased and transferred over $2.9bn to Afghanistan using contributions from international donors.
The United States stands out as the largest international donor, providing approximately $2.6bn in funding for various organizations operating in Afghanistan since August 2021. While a portion of this funding is directed towards supporting humanitarian activities implemented by partner international organizations (PIOs) and non-governmental organizations (NGOs), including the UN, the World Bank, and the Colombo Plan, individual donors lack visibility into how their contributions are allocated for cash purchases and transportation.
SIGAR's investigation revealed that the UN is the sole entity responsible for purchasing and transporting cash for humanitarian aid in Afghanistan. Collaborating with a money services business, the UN procures US currency from the Federal Reserve Bank of New York and utilizes a transportation company to fly the cash to Afghanistan. Rigorous security checks and inspections are conducted throughout the transportation process to ensure the integrity of the shipments.
Upon arrival in Kabul, the cash is inspected, counted, and deposited into the UN's account at a private Afghan bank before being transferred to recipient PIOs and NGOs. Despite the challenges posed by Afghanistan's banking sector, the UN foresees the continued need for cash shipments until substantial improvements are made in banking infrastructure and compliance with international banking laws.
However, SIGAR's report also raises concerns about the unintended consequences of cash shipments, particularly regarding the Taliban's benefit. With many private banks lacking sufficient Afghan currency to exchange for US dollars, they resort to purchasing local currency from the Taliban-controlled Da Afghanistan Bank (DAB) through currency auctions. This has resulted in the accumulation of US dollars by DAB and, consequently, the Taliban.
SIGAR's report underscores the complex dynamics surrounding humanitarian aid delivery in Afghanistan and the need for comprehensive strategies to address the country's economic and humanitarian crises. While cash shipments remain a vital lifeline for delivering aid to vulnerable populations, long-term solutions that promote financial transparency, strengthen banking systems, and mitigate unintended consequences must be pursued to ensure sustainable assistance for the Afghan people.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)