M-RCBG Associate Working Paper No. 208

Central Bank Reserves Management:
Lessons Learned from Afghanistan’s Central Bank

Ajmal Ahmady


This paper reviews the international reserves management strategy of Afghanistan’s central bank (DAB). We also review the sanctions and legal issues pertaining to DAB’s reserves upon the fall of the previous government. While international reserves of other countries have previously been frozen, this is one of the few global cases where international funds were confiscated. We use this as a case study, and conclude with recommendations for (1) reserves management in developing economies, and (2) a framework for the use of confiscated funds.

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