Monetary Policy Directorate General
The Monetary Policy Directorate General is one of the key directorates of Da Afghanistan Bank bearing the responsibility of formulating, adopting, and implementing the country’s monetary and foreign exchange policies. Adhering to the monetary variable targeting framework, the Monetary Policy Directorate General makes an effort to manage liquidity in the economy and ensure domestic price stability by using available tools.
In addition, the directorate seeks to curb fluctuations in the exchange rate following the Managed Floating Exchange Rate Regime. Overall, the directorate strives to achieve Da Afghanistan Bank’s primary goal, ensuring and maintaining domestic price stability by applying internationally accepted techniques and procedures aligned with the country’s economic condition.
Vision
Ensuring and maintaining domestic price stability, and curbing exchange rate fluctuations in the country.
Mission
Applying methods and procedures to achieve domestic price stability and curbing exchange rate fluctuations in the country.
Goals
The Monetary Policy Directorate General aims to:
• Ensure and maintain domestic price stability
• Curb exchange rate fluctuations
• Manag liquidity in the economy
Structure
The Monetary Policy Directorate General consists of three deputy directorates outlined below:
• Real and Foreign Sectors Deputy Directorate
• Monetary and Financial Sectors Deputy Directorate
• Research and Reporting Deputy Directorate
The Monetary Policy Directorate General also consists of the following Sections:
• Monetary Sector Section
• Real Sector Section
• Foreign Sector Section
• Financial Sector Section
• Economic Research Section
• Economic Publication and Reports Section
Monetary Sector Section
The Monetary Sector Section collects and prepares monetary and financial statistics using initial figures from different sources and standard methods. The figures are then finalized for use in analytical reports and the formulation of monetary policy.
Real Sector Section
The Real Sector Section is responsible for collecting and analyzing the statistical data on economic indexes, including Gross Domestic Product (GDP), the Consumer Price Index (CPI), and other indexes. The section is also tasked with analyzing and forecasting the relevant economic variables based on which effective monetary policies should be devised and implemented.
Foreign Sector Section
The Foreign Sector Section is responsible for collecting and analyzing data on balance of payments statistics and the country’s international investment positions. The data are used for the purpose of developing monetary and foreign currency policies. In addition, the data matter to the macroeconomic policymakers and the private sector.
Financial Sector Section:
The Financial Sector Section is tasked with collecting and analyzing statistics and data relevant to revenues and expenditures. The data and statistics help to develop and implement the monetary and foreign currency policies in collaboration with the country’s financial policy.
Economic Research Section:
The Economic Research Section bears the responsibility to conduct economic research, which supports the authorities in the Monetary Policy Directorate General in devising, adopting, and executing the monetary policy.
Economic Publication and Reports Section:
The Economic Publication and Reports Section, in collaboration with other Sections of the Monetary Policy Directorate General, is responsible for preparing and submitting the economic and publication reports to the relevant departments.
In addition to the Sections mentioned above, regional economists and economic analysts serve under the supervision of the Deputy Directorate of Research and Reporting. Through conducting surveys and economic analysis, they assist the Monetary Policy Directorate General in formulating and implementing monetary policies.