Afghan currency in continuous fluctuation against USD in past decade

KABUL: (MEP) – Afghanistan Central Bank (Da Afghanistan Bank) established 67 years back on February 26, 1939, published the new Afghan currency, and named Afghani.

The print paper money (banknotes) new money for the first time in Afghanistan, Amanullah Khan was published, a new phase was entered.

Perhaps this is a good excuse to address Afghanistan’s currency. Afghanistan may be because of the few countries with the kings and rulers, priests, and symbols like the flag change.

Also in Afghanistan At different period’s different currencies has been published like:

Amanullah Khan Period (Amani period)

Period of Habibullah Kalakani

Zahir Shah and the establishment of national bank in 1312, Zahir Shah came to power in Afghanistan, and a year later the National Bank with a capital of 35 million Afghani which is equivalent to 5/3 million USD was established.

Remove the Persian language: in this period, there were significant changes in the money; so that the king’s image was added and the Persian notes on the money were removed from the money that the procedure is still ongoing.

Daoud khan period: with coming to the power Daoud in 1352, there were important changes in printing money, adding that instead of showing the image of King David and King Khan instead of redundant files in the notes.

Communist period and faces removal: In the era of communist party flag and also notes the wide variation found in Afghanistan.

Mujahideen era: the rise of the Mujahideen in Afghanistan, also notes was changed. But more importantly, a significant falls in the value of foreign currencies against the Afghans.

Finally the president Karzai:

In The Taliban in Afghanistan no banknotes print out, and the Mujahideen money which that money was not published value was used.

In the first year after the rule of the Taliban, the Karzai called on the people some of the money the Mujahideen prevailed.

The most important step in a new era, in order to reduce the monetary stability and inflation was removed, and the former collecting money printing new money, the last money was worth a thousand times.

In this period, the new Afghani, were exchanged with thousands of former Afghan this large role in controlling inflation and currency appreciation against foreign currencies held in Afghanistan.

Printing money to the value of one, two and five Afghan Mujahideen since been removed, was once common, but scans of five thousand and ten thousand Afghanis, were removed.

Money “of Hamid Karzai” Like the previous edition, with changes in design, color and size were associated.

The notes of this period, for the first time, braids shiny and graphs “hologram”, was added to prevent counterfeiting money.

Afghanistan’s new government hopes that by printing new money, to change old ways of government money has changed. Therefore, the funds in this period, the unused character images, and words that indicate a course or a special rule, it is not used.

Such an approach, of course, Hamid Karzai two decades ago, the communist government and the Mujahideen were also used, but again, the government will also change money.

Now you should see the new money, would put an end to the confusion of publishing a paper in the country or not.

After the publishing of new money in Afghanistan almost during the last decade we faced different problem with foreign currency especially with USD dollar.

But in these days Afghani currency value hit its record low in a decade, with one dollar accounting for 56 AFN in the capital city.

Governor of the Da Afghanistan Bank (DAB) Noorullah Delwari linked the drop in the Afghani currency value to the fluctuations in the international market and illegal money transfers.

Addressing news conference in Kabul, Mr. Delwari alleged some individuals for forging documents to smuggle money through private banks. He refused to give details and said the individuals would be referred to Attorney General Office (AGO).

DAB officials said they had adequate resources at their disposal to keep the currency from dipping further.

Mr. Delawari assured to keep an eye on the market and keep the currency steady.

Meanwhile, moneychanger’s union head, Mohammad Tahir Qayyumi, blamed the poor performance of the bank in controlling the currency.

But Afghan economic analysts said on Monday that the decrease of Afghan currency value against foreign currencies has had negative impacts on trade process.

A number of analysts said that in order to prevent more decrease of Afghan currency value, the Central Bank and other responsible institutions which are in charge of implementing monetary policies should adopt serious measures.

While after years once again an US dollar exchanges to 56Afs, a number of economic analysts speak of rising of US dollar value against Afghan currency alongside other reasons like concerns of people regarding 2014 and the increasing demand for US dollar.

The fluctuation has brought many defects for consumers and economy of Afghanistan, the former Afghan Minister of Commerce and economic analyst, Mohammad Amin Farhang said.

“The Central Bank and the institutions which are responsible for correct implementation of economic policy, monetary policies should become active to improve the situation as soon as possible,” he said.

Meanwhile, a number of traders said that the rising of US dollar against Afghani has a direct negative impact on imported goods prices.

“According to the decision of council of ministers all of our projects should be in Afghan currency,” one of the traders Abdul Jalil Hareef said.

“Whenever the value of Afghan currency is stable and the value of foreign currency is rising against it, traders sustain risks.”

With decreasing of Afghan currency value against US dollar, traders have to buy dollars at high price and as a result of that imported goods entered into the country at high prices and traders are directly affected.

However, low value of currency of a country is useful for its exports but due to low level of imports and exports of Afghanistan this country doesn’t enjoy benefiting from it.

Afghan Afghani (AFN) and United States Dollar (USD) Graphical Chart displays quantitative information or illustrates relationships between two changing quantities AFN/USD with a line or curve that connects a series of successive data points. A grouped line graph compares a trend with one or more other trends, and shows if its rate of change of Afghan Afghani (AFN) against United States Dollar (USD) if it is increasing, decreasing, fluctuating, or remaining constant. Line graphs are the most versatile and most extensively used family of graphs. Also called line chart

Comparison of 2 currencies (AFN/USD) taken from historical exchange rate to present time depending on the selected date. Currency Graphs Helps not only investors but also money exchange services to specify the ongoing Afghan Afghani/United States Dollar Performance of Specific Currency, represented on line chart against another Currency.

By: Wahidullah Ahmadi Afghan lawyer

Email: wahidullah_ahmadi2010@yahoo.com

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