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History

Before 1891, silver rupees circulated with copper falus and gold mohur. The three metals had no fixed exchange rate between them, with different regions issuing their own coins.

In 1891, a new currency was introduced, based on the Kabuli rupee. The rupee was subdivided into 60 paisa, each of 10 dinar. Other denominations issued included the shahi of 5 paisa, the sanar of 10 paisa, the abbasi of 20 paisa, the qiran of 30 paisa and the tilla and later the amani, both of 10 rupee. In 1919, Treasury notes were introduced in denominations of 1, 5, 10, 50 and 100 rupee. The rupee was replaced in 1925 by the afghani

First afghani, 1925-2002

The first afghani was introduced in 1925, replacing the rupee. In addition to being subdivided into 100 pul, 20 afghani were equal to the amani. The rate of conversion from the rupee is sometimes quoted as 1 afghani = 1.1 rupee, based on the silver contents of the last rupee coins and the first afghani coins. The afghani initially contained 9 grams of silver.

Between 1925 and 1928, Treasury notes were introduced in denominations of 5, 10 and 50 afghani. In 1936, 2, 20 and 100 afghani notes were added. The Bank of Afghanistan took over paper money production in 1939, issuing notes for 2, 5, 10, 20, 50, 100, 500 and 1000 afghani. The 2 and 5 afghani notes were replaced by coins in 1958. In 1993, 5000 and 10,000 afghani notes were introduced.

In 1936, the afghani was pegged at 4 afghani = 1 Indian rupee. From 1940, the afghani was pegged to the U.S. dollar at various rates.

Second afghani, 2002-

Between October 7, 2002, and January 2, 2003, a new afghani was introduced with the ISO 4217 code AFN. No subdivisions have been issued. It replaced the previous afghani at two distinct rates. Issues of the government of President Burhanuddin Rabbani were replaced at a rate of 1000 to the new afghani, whilst the issues of Abdul Rashid Dostum (the Northern Alliance) were replaced at a rate of 2000 to the new afghani, The new afghani was valued at 43 afghani to the U.S. dollar. Prior to the reissue, there were more than 15 trillion afghani in circulation after unrestrained printing under Taliban rule and during wars and occupation.

After depreciating during the last quarter of 2003/04, the afghani has been appreciating steadily, gaining 8 percent against the U.S. dollar between end-March 2004 and end-July 2004. This appreciation, at a time of increasing inflation, appears to reflect a greater willingness by the population to use the afghani as a medium of exchange and as a store of value. This trend appears to be attributable to the relative stability of the exchange rate since the introduction of the new currency, administrative measures aimed at promoting its use, such as the requirement that shopkeepers must price goods in afghani. Donors are increasingly making payments in afghani instead of U.S. dollars and this appears to be widely accepted.

On October 1, 2004, Afghan Central Bank governor Anwar Ul-Haq Ahadi announced that Afghans should use their own afghani currency in daily transactions rather than United States dollars or Pakistani rupees. This was in preparation for October 8th, when all prices in the Afghan marketplace were to be specified in afghani.

Here is a nice little chart that helped me 'read' the Arabic numbers for attribution.

A 50 'Old' Afghanis note dated SH1358 (1979). The note is greenish-black with black text and multicolor underprint. The reverse features the Dar-al-Aman Palace in Kabul. This note has 2 signature varieties, this note is the first.

• Krause# Pick-57a

Reverse

This is a 100 'Old' Afghanis note SH1358 (1979). This note features deep red-violet on multicolor underprint. The obverse shows a farm worker in a wheat field on the right. The reverse shows a hydro-electric dam in the mountains. This note has 2 signature varieties, this note is the first.

• Krause# Pick-58a

Reverse

Here is a 100 'Old' Afghanis note dated SH1370 (1991). This note features deep red-violet on multicolor underprint. The obverse shows a farm worker in a wheat field on the right. The reverse shows a hydro-electric dam in the mountains.

• Krause# Pick-58c

Reverse

This is a 500 'Old' Afghanis note dated SH1370 (1991). This note is reddish-brown, deep green and deep brown on multicolor underprint. The obverse depicts horsemen competing in Buzkashi. The obverse shows the Fortress at Kabul.

• Krause# Pick-60c

Reverse

A 1,000 'Old' Afghanis note dated SH1370 (1991). This note is Dark brown and deep red-violet on milticolor underprint. The obverse depicts the Mosque at Mazar-e-Sharif. The reverse shows the Arch near kabul.

• Krause# Pick-61c

Reverse

A 5,000 'Old' Afghanis note dated SH1372 (1993). This note is violet and blue-black on multicolor underprint. The obverse depicts a Mosque with a minaret, and the reverse shows the Tomb of King Habibullah Jalalabad.

• Krause# Pick-62

Reverse

Here is a 10,000 'Old' Afghanis note dated SH1372 (1993). This note is Black, deep-olive green, and deep blue-green on multicolor underprint. The obverse depictsa gateway between 2 minarets, and the reverse shows teh Arched gateway at Bost.

• Krause# Pick-63b

Reverse

Here is a 1 'New' Afghanis note dated SH1381 (2002). The note is purple on multicolored underprint, showing the bank name around an ancient coin, with a pair of cornucopia below. The reverse shows the Mosque at Mazar-i Sharif in the center.

• Krause# Pick-64

Reverse

Reverse