As of December 15th 2014

AFGHANISTAN - AFGHAN AFGHANI, AFN

Country: : Afghan Afghani (AFN) Phonetic Spelling: {afghānī} Country Overview Abbreviation: AFN FOREIGN EXCHANGE The Afghani is controlled by the Bank (www.centralbank.gov.af)

Etymology and it serves to ensure price stability, a sound financial system conducive to macro- The Afghani is the basic monetary unit of Afghanistan, economic stability and overall economic growth. Additionally it executes all monetary equal to 100 puls (pools). The origin of the name comes policy for Afghanistan and holds the official foreign exchange reserves of Afghanistan. from the /Farsi word afghānī, which literally translates to ‘from Afghanistan’ or ‘of Afghan origin’ SOVEREIGN DEBT but in this case refers to the national monetary unit/ Afghanistan recorded a Government Debt to GDP of 8% percent of the country’s currency. GDP in 2011. Government debt to GDP averaged 66.07 Percent from 2006 until 2011,

Currency History reaching an all time high of 184% in 2006 and a record low of 8% percent in 2011. The Afghani is the official currency of Afghanistan. An Afghani is equivalent to 100 Pul. The 1st Afghani was GROWTH OUTLOOK launched in 1925 and was meant to replace the at a According to forecasters growth in Afghanistan will be driven by private consumption rate of 1.1 rupee = 1 Afghani. It is still, however, common on the demand side and by agriculture on the supply side. Continued economic to hear an Afghan use the word rupee when referring to growth is heavily dependent on projects funded by development partners, the Afghani. international forces’ s expenditures on materials and services, and major funding of the national budget by development partners. A strong harvest is also expected, but Afghanistan’s currency history was marked with a lack of standardization, forgery, and currency revaluation. no forecast of growth this year can be made with much confidence. Additionally, a Before the US invasion in 2001, political parties, positive resolution to the political crisis within should serve sustain development. warlords, forgers, and foreign powers came up with their own tradable banknotes, with no system or standard for traders to adhere to. When the seized Afghanistan’s reported inflation rate for 2013 was 7.65. Inflation forecasts have been government control in 1996, the Taliban’s reduced by 0.6 percentage points for 2014 and half a point for 2015 due to slower than declared most Afghan bank notes worthless. anticipated economic growth and a continued decline in real estate prices.

The Northern Alliance, however, continued to have notes GOVERNMENT printed in . These were then sold in the Kabul The Afghani government consists of the council of ministers, provincial governors marketplace at 50% off their value. By this time the Afghani’s value depreciated sharply and by 2001, 1 USD and the national assembly, with a president serving as the head of state and = 73,000 Afghani. commander-in-chief of the . In the last decade the have been influenced by NATO countries, particularly the United After the U.S. Invasion and the toppling of the Taliban States, in an effort to stabilize and democratize the country. In 2004, the nation’s government, a new currency or Afghani was launched new constitution was adopted and an executive president was elected. The 2014 in 2002. Coins were issued in 2005 at denominations presidential election was held in April 2014, followed by a run-off in June 2014. The of 1, 2, 5 Afghani. Bank notes were issued in 2002 results of both ballots were challenged by the losing candidate Abdullah Abdullah, in these denominations: 1, 2, 5, 10, 20, 50, 100, 500 who claimed the results were manipulated to ensure his opponent Ashraf Ghani was and 1000 Afghani. In 2005, the 1, 2 and 5 notes were declared the winner. The results of the election remained in dispute through until swapped with coins. September 2014, despite a proposal by the United States that the candidates agree to a power-sharing deal, which was initially agreed upon.

FINANCIAL SECTOR Afghanistan’s total GDP for 2013 was 20.32 billion USD. GDP growth in 2015 is now expected to be 0.7 percentage points less than the Asian Development Forecast, however it still represents a significant improvement. The assumptions are based on the formation of a unity government created in September, which aims to restore security and spark the country’s medium-term transition plan, which is supported by large security grants pledged at the May 2012 NATO summit and by substantial economic development assistance pledged at the July 2012 conference of development partners in Tokyo.

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