At a press conference held at the Government Media and Information Center, officials from Da Afghanistan Bank presented their annual performance report.
Officials outlined the institution’s strategic priorities, including the formulation of Afghanistan’s monetary policy, currency exchange management, the maintenance and administration of the country’s official reserves, the printing, minting, and distribution of currency, the licensing and regulation of banks and non-banking financial institutions, and the overall management, development, and strengthening of the nation’s financial and banking systems.
According to the officials, over the past year, Da Afghanistan Bank, through the implementation of effective monetary policies, has maintained the value of the Afghani against foreign currencies, and has taken significant steps toward achieving the set goals for controlling inflation.
They added that, due to the continued efforts of Da Afghanistan Bank, the value of the Afghani against the U.S. dollar increased by 17.25%.
The bank also reported that weekly deposit limits in Afghani accounts have increased from 70,000 to 150,000 Afghanis, and monthly limits from 250,000 to 500,000 Afghanis. Similarly, in U.S. dollar accounts, weekly limits have increased from $1,000 to $2,000, and monthly limits from $3,000 to $6,000.
Officials stated that in the past year, Da Afghanistan Bank collected and destroyed 7 billion, 186 million, and 544 thousand Afghanis worth of worn-out banknotes from the capital and provinces and injected new banknotes into the market to facilitate smoother transactions.
They also mentioned that the law for mechanizing money exchange and payment service providers was approved by the Supreme Leader of the Islamic Emirate, under which significant steps have been taken to regulate, standardize, and mechanize the activities of non-banking financial institutions.
In the past year, 149 licenses were issued to money exchange offices and payment service companies, bringing the total number of licenses issued to 1,780. In addition, the National Strategy for the Use of Electronic Money was developed, with five electronic money institutions receiving operating licenses and 1,258 (POS) devices installed in retail outlets, restaurants, hospitals, and both government and private offices.
Maintaining inflation within a desirable range has bolstered confidence in the Afghani and improved Afghanistan’s economic outlook, underscoring the pivotal role of Da Afghanistan Bank in navigating the nation’s economic challenges.
As the supervisory authority for the national banking system, Da Afghanistan Bank has diligently monitored the activities of the banks. The institution has also undertaken substantial efforts to ensure the stability and security of the banking system, including the drafting of banking laws and regulations, conducting financial inspections and liquidity assessments, identifying and addressing weaknesses, and proposing corrective measures.
Over the past year, Da Afghanistan Bank carried out five follow-up reviews, two targeted inspections, and 12 unannounced audits, including liquidity management assessments, 20 reviews aimed at combating money laundering and crime-related proceeds, and 124 evaluations of commercial banks.
Furthermore, 377 money exchange offices and payment service companies were monitored, and eight internal and six external audits of electronic money institutions were conducted. Moreover, 700 systems have been registered and reviewed by the central bank.
Moreover, the Bank has introduced necessary facilities for opening individual accounts, making initial deposits, reactivating dormant accounts, and managing annual fees for both individual and corporate accounts. #
