Da Afghanistan Bank History

According to CM (Council of ministers) approval number 152 dated 3/2/1318, Wolesi Jirga (House of Representatives) approval number 11 dated 19/6/1318, Meshrano Jirga (House of Elders) historical approval dated 12/6/1318 and then-king’s approval number 1317/5280 dated 17/11/1318, Da Afghanistan Bank was established in capital Kabul with initial asset of 120 million Afghanis, which, with its defined authorities and responsibilities, was able to set up its branches and subsidiaries inside and outside the country.

Afghanistan’s banking system was first founded with the institution of Bank Millie Afghan in 1312 HS, which was managing Afghanistan’s state banking affairs before the establishment of Da Afghanistan Bank. After DAB’s establishment, state banking responsibilities were transferred from Bank Millie Afghan to Da Afghanistan Bank.

As of establishment date until 1380 HS, Da Afghanistan Bank was carrying out commercial activities as other commercial banks alongside managing of state banking affairs. But after 1381 HS and as per article 12 of Afghanistan Constitution, Da Afghanistan Bank as an independent institution with its specific duties, goals and responsibilities promoted to as Central Bank of the country. 

Based on DAB law, stability of price is the primary objective of this bank and therefore devising, implementing and adopting of monetary policies, foreign currency policy and provision, printing of banknotes and minting of coins are considered among Central Bank duties. Furthermore, as the banker and the financial institution of the state, DAB, according to the law, issues licenses to and supervises banks, FX dealers, financial services providers and securities and provides safe and sound payment system as well.