Afghan Finance Minister Ashraf Ghani said on Thursday that a move to replace the troubled afghani currency with new bank notes showed the government’s commitment to the independence of the central
bank.
Ghani told a joint press conference with Anwar Ul-Haq Ahady, head of the Da Afghanistan Bank, that the implementation of the currency change would be left in the hands of the central bank.
”Today underlines the commitment of the government to the independence of the central bank,” said Ghani.
”It is the central bank that is taking charge of the implementation of this very important policy.”
Ghani also promised that government would never resort to a policy of deficit finance.
”Our fiscal policy is going to be prudence. We will never issue a request to the bank which is not backed by the resources.”
He was speaking a day after President Hamid Karzai said that new banknotes would be issued in a bid to bring stability to volatile exchange markets.
The new currency, which will still be called the afghani, will be worth 1 000 of the replaced currency, Karzai said in an address on state television.
Ahady said the currency revamp was essential as the afghani’s ”current value is too low and transaction costs too high”.
Afghans will be able to exchange the old currency for new banknotes from October 7, said Ahady. At least 75 exchange centers are to be set up around the country and the whole process should be completed by December 5.
”No one’s wealth should increase or decrease as a result of the programme,” the bank chief added.
The move will also mean just one currency will be legal tender.
There are currently three versions of the afghani in circulation.
One version of the note which is in use in northern Afghanistan is worth just a half of the currency which is used in the rest of the country.
Another note in use in a small corner of northeastern
Afghanistan dates back to the time when the region remained in the hands of the Northern Alliance while the rest of the country was ruled by the Taliban.
Lakhdar Brahimi, the United Nations’ special envoy to
Afghanistan, also gave his backing to the programme Thursday.
”The introduction of a single currency will bring to an end the use of the multiple afghani currencies that are currently in circulation,” Brahimi said in a statement.
”This currency reform is going to help bring monetary stability to the country and is a necessary precondition for the establishment of an effective national banking system.” – Sapa-AFP