About Monetary Policy

Da Afghanistan Bank (DAB), as the central bank, is responsible for the formulation, adoption, and implementation of Afghanistan's monetary policy. The bank's monetary policy involves utilizing monetary instruments to influence the money supply or liquidity in the economy to achieve overall domestic price stability, which is the primary objective of Da Afghanistan Bank. According to Article 2 of the Da Afghanistan Bank Law, the bank's main objective is to stabilize domestic prices.

By achieving its main objective, DAB fosters investors’ confidence in using their available financial resources to increase production and employment, contributing to economic growth. In addition, the stability of this index influences household economic decisions and is considered a key factor in determining the level of savings. For this reason, DAB has prioritized price stability as its main objective to support economic growth in this way.