Currency
of Afghanistan is called Afghani (A.F.A.). Every unit of Afghan currency is
made of 100 puls. Notes denominations are AFN 1000, 500, 100, 50, 20, 10, 5,
2 and 1. US Dollar is widely accepted in the country.
ATMs/Credit-Debit Cards/Traveller's Cheques
Number of ATMs in all Afghanistan can be counted on fingers, and those too
are not reliable. Credit-Debit cards are not generally accepted. Traveller's
Cheques take long time to clear. Travellers are counseled to carry
sufficient funds in US Dollar.
Fall and Stabilisation of Afghan Currency
In 1981, official rate of exchange had been fixed at 50Afghanis per every
US Dollar. However, political unstability has caused dramatic fluctuation in
Afghan currency. In 1994 it slipped to 2400 Afghanis on US $1. As result
purchasing power of the Afghans has considerably decreased. They grew poor
and more poor. In 2001, under the Taliban, the exchange rate of the Afghani
was 73,000 every US$1. However, after fall of the Taliban, it improved to
23,000 US$1.
Banks and Stock Market
Central Bank of Afghanistan, the largest bank in Afghanistan, was founded
in 1938. It had the responsibility of issuing bank notes, executing
government loans, and lending money to other banks. Government of
Afghanistan nationalised all private banks in 1975. However continuous
strife has led to most banks stopping their work. Stock market and other
modern forms of economic progress haven't developed in Afghanistan.
The new government in Afghanistan to trying to bring economy back on track
in the war-ravaged country.
