Exchange Rate Policy
In the light of Article 69 of the Da Afghanistan Bank law, formulating, adopting and execution of exchange rate policy is one of the main duties of Da Afghanistan Bank. Da Afghanistan Bank has adopted the Managed Floating Exchange Rate regime. Under this regime, the exchange rate is determined by the demand and supply factors in the market and its serious fluctuations are controlled by DAB as much as possible.
This exchange rate regime is adopted based on the economic condition, balance of payments, and taking into account the degree of openness of the economy (currency inflow and outflow). Under this regime, DAB does not target the exchange rate.