Afghanistan
Country ISO code: AF
Official language: Dari (Afghan Persian)
Language ISO code: fa
Current official currency: Afghan Afghani
Current currency ISO code: AFN
Financial History and Currencies of Afghanistan
1. Afghan Afghani (AFN)
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Singular name: Afghani
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Plural name: Afghanis
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Monetary subdivision: 1 Afghani = 100 pul
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Fraction name (singular): Pul
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Fraction name (plural): Puls
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Initial production date: 1925 (introduction of the Afghani)
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Initial circulation date: 1925
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Mint: Afghanistan Mint (local) and external production in some periods
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Issuing bank: Central Bank of Afghanistan (Da Afghanistan Bank)
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Minted coin denominations: 1, 2, 5, 10, 20, and 50 pul; 1, 2, 5 Afghanis
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Printed banknote denominations: 1, 2, 5, 10, 20, 50, 100, 500, 1000 Afghanis
2. Previous coins and banknotes
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Before the Afghani, Afghanistan used coins based on the Afghan rupee, influenced by Indian currency, especially in the 19th and early 20th centuries.
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The Afghan rupee was replaced by the Afghani in 1925 as part of a monetary reform to modernize the country's financial system.
Economic Historical Context
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Afghanistan is one of the poorest countries worldwide, with an economy heavily affected by decades of armed conflict and political instability.
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The economy is mainly based on agriculture and livestock, with limited industry and trade.
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The country has significant mineral reserves such as lithium, copper, gold, and niobium, but exploitation is limited due to lack of infrastructure and stability.
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The Taliban, the insurgent group controlling the country since 2021, operates a sophisticated financial network including taxation on trade, international donations, and control of trade routes, generating estimated revenues up to US$1.5 billion in 2018.
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The Central Bank of Afghanistan is the official issuing authority of the currency, but circulation and monetary control are affected by political situation and internal conflicts.
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The Afghani remains the active official currency, although its circulation and monetary stability face challenges due to economic and political crises.
Curiosities
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The Afghani has undergone several reforms and design changes reflecting the country’s historical periods, including monarchical, communist, and fundamentalist regimes.
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Commemorative coins are rare given the country’s economic and political conditions.
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Banknotes are generally signed by the governor of the Central Bank of Afghanistan.
Relevant Monetary Legislation
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Currency issuance and regulation are defined by the Central Bank of Afghanistan legislation, which controls monetary policy, exchange, and financial supervision, although enforcement is hindered by political instability.
Current Circulation Status
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Active, though with logistical and confidence challenges due to the country’s political and economic situation.
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