Ministers are continuing their scramble for a co-ordinated international response to the crisis in Afghanistan following the Taliban’s dramatic takeover.
Prime Minister Boris Johnson on Wednesday night resumed his series of calls with world leaders following the fall of the central Asian country to the extremist group.
He spoke with Italian Prime Minister Mario Draghi, having also this week held talks with the leaders of France, Germany, the US and Pakistan.
Image: Dominic Raab will speak with other G7 foreign ministers
Foreign Secretary Dominic Raab also continued with efforts to come up with a joint global response by speaking with his Indian and American counterparts.
However, Mr Raab was hit with calls to resign from opposition MPs following claims he last week failed to immediately ask Afghanistan’s foreign minister for urgent assistance in evacuating Afghan interpreters who had worked for the UK military.
According to the Daily Mail, the foreign secretary – while on holiday with his family in Crete – was advised by officials on Friday to speak with Hanif Atmar as the Taliban advanced on Kabul.
But, the newspaper said, officials were told Mr Raab was not available and that another foreign office minister should speak with Mr Atmar.
More on Afghanistan
This is a dereliction of duty.
Failing to make a call has put the lives of brave interpreters at risk, after they served so bravely with our military.
The report said that Mr Raab ended up not speaking with his Afghan counterpart until at least the next day, after the Afghan foreign ministry refused to set up a call with the more junior UK minister.
A foreign office spokesperson said: “The foreign secretary was engaged on a range of other calls, and this one was delegated to another minister.”
Labour’s shadow home secretary Nick Thomas-Symonds accused Mr Raab of a “dereliction of duty”, adding: “Failing to make a call has put the lives of brave interpreters at risk, after they served so bravely with our military. Utterly shameful.”
On Thursday, Mr Raab will join a virtual meeting of G7 foreign ministers.
This will precede a planned virtual meeting of G7 leaders early next week – set to be held more than seven days since Afghanistan’s capital Kabul was seized by the Taliban.
The virtual talks will come as European leaders struggle to hide their frustration with US President Joe Biden’s handling of the withdrawal of American troops from Afghanistan.
However, Mr Biden has remained defiant about his decision to pull-out US soldiers and, on Wednesday night, once again refused to take questions following a live televised statement from the White House.
The prime minister used his address to parliament to promise a doubling of UK aid to Afghanistan this year to £286m.
The government – which has cut the UK’s overall foreign aid budget – is also calling on other nations to boost humanitarian assistance to Afghanistan.
The UK will double its humanitarian and development aid to Afghanistan to £286m this year. We call on others to follow our lead to ensure the most vulnerable Afghans receive the humanitarian assistance they need.
Downing Street said Mr Johnson, in his talks with Mr Draghi, had “outlined his five-point proposal for the international community to support the people of Afghanistan and to contribute to regional stability”.
The continuing immediate priority for many countries is the evacuation of their nationals from Kabul, with the US warning on Wednesday night that it could not ensure safe passage for those attempting to reach the city’s airport.
The US also said it does not currently have the capability to evacuate large numbers of Americans who are outside Kabul.
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Biden snubs Afghanistan questions
As of 8am on Wednesday, the UK had evacuated approximately 1,200 people from Kabul on military flights.
This includes around 300 British nationals, with the other 900 predominantly individuals resettled under the scheme for those Afghans who were employed locally by the UK, along with a small number of Afghans who are dependents of British nationals.
The government has also promised to welcome up to 5,000 of the most vulnerable Afghans to the UK in the first year of a bespoke refugee scheme, and up to 20,000 in future years.
A Downing Street spokesperson said: “Today the prime minister set out the UK’s significant offer to address the humanitarian crisis in Afghanistan – doubling our humanitarian aid to the region and establishing one of the most generous asylum schemes in British history.
“He also outlined the UK’s broader strategy for Afghanistan and the region, including the need to unite the international community behind a clear plan for dealing with the Taliban regime in a unified and concerted way.
“We are now asking our international partners to match the UK’s commitments and work with us to offer a lifeline to Afghanistan’s most vulnerable people.”
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A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.
The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.
If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.
The total current market cap of all stablecoins sits at $310.7 million according to CoinGecko data, and Miran suggested that Fed research found the market could grow to up to $3 trillion in value in the next five years.
Stephen Miran speaking at a conference in New York on Friday. Source: BCVC
“My thesis is that stablecoins are already increasing demand for US Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States and that this demand will continue growing,” Miran said.
“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”
Organizations, including the International Monetary Fund, have warned that stablecoins pose a threat to traditional financial assets and services, as they could potentially compete for customers. US banking groups have also urged Congress to tighten oversight of stablecoins with yield, arguing they could attract would-be bank users.
During his speech, Miran praised the GENIUS Act for setting out clear guidelines and consumer protections, as he indicated that the regulatory framework will play a key role in spurring broader adoption of stablecoins.
“While I tend to view new regulations skeptically, I’m greatly encouraged by the GENIUS Act. This regulatory apparatus for stablecoins establishes a level of legitimacy and accountability congruent with holding traditional dollar assets,” he said, adding:
“For the purposes of monetary policy, the most important aspect of the GENIUS Act is that it requires U.S.-domiciled issuers to maintain reserves backed on at least a one-to-one basis in safe and liquid US dollar–denominated assets.”
The crypto market could soon see some much-needed relief after the US Senate reached an agreement on a three-part budget deal to end the government shutdown, Politico reports.
Pending legislation to fund the US government has more than enough support to pass the 60-vote threshold, Politico reported on Sunday, citing two people familiar with the matter.
It was Republican Senate Majority Leader John Thune’s 15th attempt to win Democratic support for a House-approved bill, putting the record 40-day government shutdown within reach of being lifted.
An official vote is still needed to finalize the agreement.
Ongoing uncertainty over when the US government would reopen has been a key factor holding back Bitcoin (BTC) and the broader crypto market from mounting a rebound.
Bitcoin initially rallied to a new high of $126,080 six days into the government shutdown on Oct. 6, but has since fallen over 17% to $104,370, CoinGecko data shows.
Bitcoin’s fall over the past month saw it drop by double-digit percentage points on Oct. 10 after US President Donald Trump’s announcement of 100% tariffs on China sent shockwaves throughout the markets.
Bitcoin’s change in price since Oct. 1. Source: CoinGecko
Bitcoin rallied 266% after last government shutdown lifted
The last US government shutdown occurred between late December 2018 and late January the following year in Trump’s first term.
After it ended on Jan. 25, 2019, Bitcoin rose over 265% from $3,550 to $13,000 over the next five months.
Prediction markets back shutdown to end this week
Bettors on prediction market Polymarket are backing that the government shutdown will be lifted on Thursday, with the market showing a 54% chance it will happen between Tuesday and Friday.