VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The United Nations aims to kickstart this month a system to swap millions of aid dollars for Afghan currency in a plan to stem humanitarian and economic crises and bypass blacklisted Taliban leaders, according to an internal U.N. note seen by Reuters.

Since the Taliban takeover in August, foreign financial assistance has stopped and international banks are wary of testing U.N. and U.S. sanctions on the hardline Islamist group, leaving the United Nations and aid groups struggling to obtain cash even as they continue to receive humanitarian donations.

The U.N. explanatory note, written last month, outlines an "urgently needed" Humanitarian Exchange Facility (HEF). The United Nations has warned that more than half of Afghanistan's 39 million people are suffering extreme hunger and the economy, education and social services are collapsing.

"The overall objective is to have the HEF up and running in February," the note said. "Prior to the full establishment of the facility, we seek to facilitate several trial swaps, to demonstrate exactly how the mechanism will work."

U.N. and humanitarian officials warn that the facility can be only a temporary measure until Afghanistan's central bank begins operating independently and some $9 billion in foreign reserves frozen abroad are released.

But when that could happen is uncertain. The reserves held by the United States are tied up in legal action and Western governments are reluctant to release funds unless they see the Taliban show greater respect for human rights, especially those of women and girls.

The HEF would allow the United Nations - which is seeking $4.4 billion for humanitarian assistance this year - and aid groups access to large amounts of the national currency, the afghani, held in the country by private businesses.

In exchange, the United Nations would use aid dollars - potentially tens of millions - to pay the businesses' foreign creditors, thereby bolstering the flagging private sector and critical imports.

"The facility's flow of funds would not require the movement of funds across the Afghan border," the U.N. note said.

While the money bypasses the Taliban, the note says the HEF will need the approval of the Taliban-run central bank for "the flow of funds and the exchange rate used and the withdrawal of AFN cash deposited into AIB (Afghanistan International Bank) without any restriction."

A spokesman for the Taliban government confirmed that officials in Afghanistan were aware of the proposal for the HEF, but did not know the details or the procedure.

"We welcome any kind of humanitarian actions for the people of Afghanistan, but all actions should be taken according to Afghanistan's laws and national interests," Bilal Karimi told Reuters on Friday in response to a question on the HEF.

'STARVATION CRISIS'

The United Nations does not comment on leaked documents, U.N. spokesman Stephane Dujarric said of the note. U.N. Secretary-General Antonio Guterres has said Afghanistan is "hanging by a thread" and long pushed for international action to combat the economic crisis hampering aid efforts.

Afghanistan's economy has continued to deteriorate, with inflation for basic household goods reaching nearly 42% in January, compared to the year-earlier period, the World Bank said on Wednesday. Wages and demand for labor continued to decline, as did imports, which were down 66% compared to a year earlier, it said.

Aid groups and U.N. officials have been advocating for a cash swap mechanism, but the U.N. note seen by Reuters provides new details on how it will work.

Graeme Smith, a senior consultant for the International Crisis Group think-tank, told the U.S. Senate Foreign Relations Committee on Wednesday that an exchange facility is needed quickly, but only as a stopgap measure.

"It is not sufficient," he said. "Nobody should be under any illusions that this substitutes for the normal functioning of a central bank."

Complicating the response, Taliban leaders have banned the use of foreign currency in a country where U.S. dollars were common. The United Nations has flown in shipments of $100 bills, but the central bank has not converted them, leaving the world body sitting on about $135 million in cash that it cannot use, a U.N. official said last week. read more

Those funds are held in Kabul in the vaults of AIB, the official said, the private bank that would play a role in the new cash swap system.

The security of the cash flights and limits on how much can be delivered are key reasons for starting the new exchange facility, the note said.

World Bank and U.N. officials have been working to finalize the HEF, including completing a risk assessment, seeking a U.S. Treasury license to protect international banks from sanctions, and hiring a private company to vet participants and guard against money-laundering, the note said.

David Miliband, head of the International Rescue Committee, said the consequences of Afghanistan's economic crisis could be devastating, and he called for a change in U.S. and international policy toward the country.

He told the Senate committee on Wednesday: "Current policy will indeed mean that a starvation crisis kills ... more Afghans than the past 20 years of war." (Reuters)

New Zealand police on Thursday arrested 120 people as they attempted to forcefully remove hundreds of protesters camped outside parliament to protest COVID-19 vaccine mandates and tough coronavirus restrictions.

Inspired by truckers' demonstrations in Canada, several thousand protesters this week blocked streets near the parliament in capital Wellington with trucks, cars and motorcycles.

A country of five million people, New Zealand has reported just over 18,000 confirmed cases and 53 deaths since the pandemic began. About 94% of eligible people are vaccinated, with shots mandatory for some staff in frontline jobs.

The country's borders are still closed, however, with tens of thousands of expatriate New Zealanders facing being cut off from families. Tourism businesses are struggling to stay afloat.

Prime Minister Jacinda Ardern on Thursday told the protesters to "move on", saying the protests are not a reflection of what the majority in the country feels. As of 8.00 p.m. (0700 GMT), protesters remained at the site, defying warnings and efforts by the police to clear them.

It has been three days since the protesters blocked roads and set up camp at the parliament grounds.

"All of us want to actually move on. We are working very hard to put ourselves in the best possible position to do that," Ardern told reporters after visiting a vaccination centre in Auckland.

Ardern acknowledged every New Zealander had the right to protest, but said that should not disrupt others' lives. Removing protesters was an operational matter for police, she said.

Despite garnering plaudits for keeping the country virtually virus-free over the last two years, the strict restrictions now in place have become unpopular, with Ardern's approval ratings taking a hit in recent opinion polls.

"Jacinda (Ardern) has turned her back on us," said a protester, identifying himself as Dave.

"Kiwis are not dumb. We are losing our jobs and our lives due to these mandates and restrictions," he said.

'HOLD THE LINE'

Speaker Trevor Mallard on Thursday authorised the closure of grounds around the distinctive 'Beehive' parliament building, after which demonstrators quickly confronted police officers, banging drums and screaming insults. Some were seen throwing empty plastic bottles at the police.

"Hold the line," protest organisers shouted over microphones while some others chanted the Maori haka.

As the crowd pushed against barriers, police pulled them out and wrestled them to the ground, a Reuters witness said. Dozens were handcuffed and taken away amid cries of "Shame on you!" from the crowd.

Police used pepper spray on some protesters after officers were pulled into the crowd but no serious injuries were reported, a police statement said.

Police said those arrested will face trespass and obstruction charges, and will be bailed to appear in court.

Many protesters, who said they were vaccinated but were against mandating shots, were seen holding placards saying "Freedom", "Leave our kids alone" and "Let me work".

"We are not going anywhere," said one demonstrator who gave his name only as Adam, and said he had come from Palmerston North, about 140 km (87 miles) north of Wellington.

"We will hold the line and see this through," he said. (reuters)