he unit of currency in Afghanistan is the
afghani, which is divided into 100 puls. Since 1981 the
official rate of exchange has been fixed at 50 afghanis equal U.S.$1.
However, the actual market rate of the afghani has fluctuated, and in 1994
2400 afghanis equaled U.S.$1. Dramatic inflation (with rates of up to 57
percent), which has been taking place in Afghanistan since the Soviet
invasion, contributed to the drastic decrease in the purchasing power of
the afghani from 1981 to 1994.
Afghanistan's central bank was founded in 1938 and is the largest bank
in Afghanistan. The central bank issues all notes, executes government
loans, and lends money to cities and to other banks. All private banks in
Afghanistan were nationalized in 1975, mostly because a lack of clear
terms for borrowers and lenders had made it difficult for people to use
the country's credit resources. No stock market or other modern form of
economic development exists in Afghanistan. Instead, archaic "money
bazaars" exist to provide money-lending and foreign exchange dealings.
On Monday Oct 7, 2002 Afghanistans interim government marked the first anniversary of U.S. air strikes that brought it to power by issuing new banknotes, aimed at reasserting central control over a war-ravaged economy.
On Monday Oct 7, 2002 Afghanistans interim government marked the first anniversary of U.S. air strikes that brought it to power by issuing new banknotes, aimed at reasserting central control over a war-ravaged economy.
