DAB Supreme Council's newsletter on status and prospects of Monetary and Currency policy

November 03, 2015 - the third alternate session of Da Afghanistan Bank's Supreme Council was held on October 31 to November 1, 2015. Beside other issues included in the agenda of the session, a report on the general status of monetary and currency policies of Afghanistan along with the measures in the first 3 quarters of the current year with respect to the monetary and currency policies; were presented in the meeting.

According to this report, decrease in the expenses of foreign troops this year in Afghanistan has put considerable impact on aggregate demands and through this on real economic growth, and financial and monetary variables. Change in real economic growth along with decrease in international prices of raw materials (especially crude oil) on the other, has caused decline in the general prices level.

In regional and international level, the national currency value of most of developed and developing economies has unprecedentedly plummeted while by adopting appropriate and prudent policies and implementation of primary and operational monetary and currency policy objectives, Da Afghanistan Bank was able to handle the currency and monetary fluctuations in an appropriate manner. After hearing the report, Supreme Council of DAB comprehensively and deeply reviewed the measures taken by Central Bank with respect to management and implementation of monetary and currency policies of the country and assessed them effective, satisfactory and positive.

Meanwhile, Supreme Council tasked the respective departments to keep up drafting and the implementation of realistic and appropriate policies considering the developments and impacts and make reasonable and effective use of available instruments towards achieving monetary and currency objectives.

As a result, after reviewing and analyzing the prospects of monetary and currency variables, Supreme Council assessed the monetary and currency sector outlook as positive and hoped that with preserving the gained achievements and with the continuity of appropriate, prudent and practical measures; the monetary and currency policy indexes status will witness further improvements.