Afghan Afghani (AFN)

What Is the Afghan Afghani (AFN)?

The Afghan afghani (AFN) is the national currency of the Islamic Republic of Afghanistan. Its ISO 4217 code, AFN, was presented in 2003 as part of efforts to settle the currency and reduce inflation. Prior to this change, it coursed under the symbol AFA.

As of Sept. 20, 2021, $1 USD is worth 79.9 AFN.

Grasping the Afghan Afghani (AFN)

Afghanistan has gone through many changes to its currency in recent decades. In 1925, the Afghan rupee was replaced with the original afghani, which was then transformed in 2002 and issued for circulation as the AFN in 2003. The previous afghani operated under a fixed exchange rate, while the AFN operates on a floating exchange rate.

The economy of Afghanistan has gotten through substantial difficulties. The Soviet-Afghan War, which started in 1979, seethed for almost a decade, and the country has been grasped by different civil wars from that point forward.

Prior to the changes put in place in 2002, there were several unique variants of the AFN in circulation all through Afghanistan. A large number of these were controlled by neighborhood warlords. In this way, as of not long ago it was challenging to decide the value of the currency of Afghanistan, as the country missing the mark on generally accepted currency.

Today, the AFN is managed by Afghanistan's central bank, "Da Afghanistan Bank." Its monetary policy objective is to limit the risk of inflation while keeping up with the floating exchange rate system. In 2002, the central bank presented banknotes in divisions of one, two, five, 10, 20, 50, 100, 500, and 1,000 AFN. In 2005, the one, two, and five AFN banknotes were replaced with coins.

Afghanistan's Economy

Albeit today the AFN appreciates generally low rates of inflation, Afghanistan has encountered extreme episodes of inflation in the past. Somewhere in the range of 1982 and 1992, hyperinflation caused the exchange rate of AFN to [U.S. dollars (USD)](/usd-US dollar) to rise from 50.60 to 16,000. In later times, inflation came to almost 15% in 2011, and has drifted around 5% each year since.

A restored takeover of the country by the Taliban and the withdrawal of U.S. Once more and allied powers has driven a few analysts to fear that hyperinflation and economic stagnation might return to the country.

As per the World Bank, economic growth in Afghanistan has been hampered by diligent political unsteadiness inside the country. These factors have discouraged private investment and hosed consumer demand.

The annual growth rate of Afghanistan's gross domestic product (GDP) has floated around 2% in recent years. As far as concerns its, the AFN has depreciated intensely against the USD beginning around 2012, devaluing from just under 50 AFN per USD to around 80 AFN per USD from 2019 through 2021.

Features

• The country has confronted episodes of hyperinflation over its time. Be that as it may, inflation has diminished in recent years and the value of the AFN has remained genuinely stable.
• The Afghan afghani (AFN) is the national currency of Afghanistan.
• The AFN arose because of modernizing changes that occurred in 2002 to normalize the currency in the country.