Afghan afghani

The afghani (sign: Afs;Pashto: افغانۍ; Dari افغانی; code: AFN) is the currency of Afghanistan. It is nominally subdivided into 100 pul (پول), although there are no pul coins currently in circulation.

Original afghani (1925-2003)

The first afghani (ISO 4217 code: AFA) was introduced in 1925. In addition to being subdivided into 100 pul, 20 afghani were equal to one amani. The rate of conversion from the rupee is sometimes quoted as 1 afghani = 1 rupee 6 paisa, based on the silver contents of the last rupee coins and the first Afghani coins. The Afghani initially contained 9 grams of silver.

Except during World War I Afghanistan's foreign exchange rate has been freely determined by market forces. However, for some periods, a dual exchange rate regime existed in Afghanistan: an official exchange rate which was fixed by the Afghan Central Bank, and a free market exchange rate which was determined by the supply and demand forces in Kabul's money bazaar called Saraye Shahzada. For example, in order to avoid the seasonal fluctuations in the exchange rate, a fixed exchange rate was adopted in 1935 by the Bank-e Milli, which was then responsible for the country's exchange rate system and official reserves. Bank-e Milli agreed to exchange afghanis at 4 Afs against 1 Indian rupee in 1935. After the establishment of Da Afghanistan Bank as the Central Bank of Afghanistan, such a preferential official fixed exchange rate continued to be practiced. Although Da Afghanistan Bank tried to keep its official rate close to the Saraye Shahzada's exchange rate, the gap between the official and free-market exchange rates widened in the 1980s and during the civil war.