(Bloomberg) -- The Taliban administration picked a new governor for the Afghanistan central bank that’s struggling to access billions of dollars in reserves that have been frozen by the US and Europe for months.
Finance Minister Hidayatullah Badri was appointed as acting governor, replacing Mohammad Idris, a key fundraiser for the Taliban during its decades-old war against the US. Taliban spokesman Zabihullah Mujahed confirmed the appointment on Wednesday but didn’t give further details.
The change of guard comes weeks after Badri presented the national budget of about $2 billion for the year to the group’s supreme leader Haibatullah Akhundzada for approval. Afghanistan’s fiscal year starts from March 21.
Despite sweeping into power more than a year ago, the Taliban administration has been grappling with rising unemployment and living costs while dealing with infighting among its leaders and militant attacks. The United Nations has warned that more than half the nation’s population is facing acute hunger.
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The Afghan central bank needs dollars to import food and jumpstart the economy but this has been blocked by Europe and the US who have frozen more than $9 billion of reserves overseas, fearing the funds would be used for terrorism instead. The US later agreed to release half of the reserves to bolster the economy but put it on hold after the Taliban banned Afghan women from attending school or working.
Even among the Taliban there are divisions on the sweeping orders to restrict women’s rights. One faction backs supreme leader Akhundzada who issued the conservative decrees, while another group are pushing back against him.
Badri hails from Kandahar, the birthplace of the Taliban, and was one of the closest aides to late Mullah Mohammad Omar, the founder of the militant group. Omar’s son and the current Defense Minister, Mullah Mohammad Yaqoob, is one of the leaders driving the faction against the conservatives.
Ministry of Finance spokesman Ahmad Wali Haqmal said on Wednesday that Mullah Mohammad Nasser Akhund, a deputy minister of revenue and customs, will take charge until Badri’s replacement is appointed.
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