Afghani

The Afghani is the official currency of Afghanistan, issued by the Da Afghanistan Bank, the country's central bank. Introduced in 1925, it replaced the Afghan Rial at a rate of 1 Afghani equaling 100 Rials. The currency is abbreviated as "AFN" and is divided into 100 pul (singular: puli), though smaller denominations are rarely used in circulation.

The Afghani is primarily issued in banknotes of 1, 2, 5, 10, 20, 50, 100, 500, and 1000 denominations, with coinage limited to 1 and 2 Afghani pieces. The banknotes feature a range of historical and cultural motifs, including portraits of Afghan leaders, landmarks, and traditional art. Security features such as watermarks, holograms, and microprinting help prevent counterfeiting.

The Afghani's value has fluctuated significantly over the decades due to economic instability, political turmoil, and international sanctions. Following the Taliban's takeover in 2021, the currency faced renewed volatility, with concerns over its long-term stability. The Afghan economy relies heavily on remittances from Afghan diaspora workers, foreign aid, and limited domestic production, contributing to the currency's instability.

The Afghani is not widely traded on global foreign exchange markets, and its exchange rate is determined by supply and demand in local markets. The currency is used alongside the United States dollar in many transactions, particularly in urban areas, due to its perceived stability. The Taliban government has encouraged the use of the Afghani to reduce reliance on foreign currencies, though enforcement remains inconsistent.

The Afghani's design and issuance reflect Afghanistan's complex history, blending elements of tradition with modern economic necessity. Despite challenges, it remains the primary medium of exchange within the country.