Exchange Rate Policy
In accordance with Article 69 of the Da Afghanistan Bank law, formulating, adopting, and implementing exchange rate policy is one of the primary responsibilities of Da Afghanistan Bank. Da Afghanistan Bank has adopted the Managed Floating Exchange Rate regime. Under this regime, the exchange rate is determined by market demand and supply factors, with DAB managing significant fluctuations.
This exchange rate regime is adopted based on the economic conditions, balance of payments, and taking into account the economy's openness (currency inflow and outflow). Based on this system, DAB does not set a specific target for the exchange rate.