Central bank confirms new Afghani banknotes to enter circulation

Da Afghanistan Bank, the country’s central bank, confirmed Sunday that new banknotes would soon enter circulation and replace the old, crumbling AFN.

DAB’s announcement came on the heels of US special envoy Thomas West’s comments on Friday that a decision had been made to replace the old banknotes with new notes.

Afghanistan’s central bank said in a statement that the issuance of new banknotes will be based on reasonable monetary policies, balanced with economic growth and market necessity.

DAB said the old notes will be systematically removed from circulation and replaced with the new banknotes.

It is not yet clear when and where the new notes will be printed.

On Friday, West said the new notes would enter the market soon.

Addressing a virtual townhall organized by a US-based Afghan diaspora group, Afghans for a Better Tomorrow, West said: “We all know the banking sector in Afghanistan is cut off from the international financial system, by and large, with the exception of one private bank.

“But there are some transactions that the ministry of finance technocrats and the central bank technocrats want to responsibly move forward with and are unable to do so unless the United States and a number of other countries in a corresponding banking chain really lean in and help to conclude.

“So I am very pleased to say that in the past 24 hours we have finally seen the conclusion of two currency transactions.

“This will mean that new printed Afghani will replace bank notes that … are virtually disintegrating in the system,” he said.