Monetary Policy Formulation and Execution
Monetary Policy Committee (MPC) is responsible to formulate and make monetary policy decisions. This committee consists of DAB governor, first deputy governor, and members of the supreme council. MPC is chaired by the governor of DAB, First Deputy Governor acts as Deputy Chairman, members of the Supreme Council as members and Monetary Policy Director General acts as the Secretary of the Committee.
MPC is mainly responsible for determining monetary and foreign exchange policy, which held it meetings quarterly four times a year.
Generally, this committee makes decisions on setting the framework and operational targets of monetary policy, approving quantitative goals, determining the exchange rate regime and currency arrangements of Afghanistan, monetary policy instruments and the scope of their use, and the percentage of required reserves of commercial banks.