The truth about the afghani currency

[JeffP]

The Afghani was simply revalued and

old currency was demonetized, and new currency was reissued.

No one made huge profits from this.

Basically, two zeros were chopped off;

01/01/2003 4726.30 Old AFA /1 USD

revalued / reissue to;

01/02/2003 42.7850 new AFA /1 USD

1'000'000 old Afghani (worth $211.58)simply became
10'000 new Afghani worth 1 apprx. $233 USD


Before the reissue there were more than 15 trillion Afghanis in circulation
after unrestrained printing under Taliban rule and during wars and occupation
with the old value of 4726 AFA/1 USD.

2The annual revenue target (floor) for the SMP is Afg 12.784 billion ($256 million). 7-12 Billions in circ with reserves at $147 -256 mill

Currently there are : 8'785 billion Afghani in circulation at the present rate:

1 US Dollar = 42.78500 Afghanistan Afghani
1 Afghanistan Afghani (AFA) = 0.02337 US Dollar (USD)

With $205 million USD reserves

Money supply was simply reduced with reissue to coincide with reserves under SMP monitored IMF implemented program.

http://www.imf.org/external/np/loi/2004/afg/02/#tab1

JeffP :wave:

[BRYAN]

Hey Jeff nice report!!!


Jan 1,2003 it was .0002 to 1 dollar

Jan 2,2003 was revalued .02 to 1 dollar

I believe that their currency won't venture to much farther upward :confused:

[Jerry]

"1'000'000 old Afghani (worth $211.58)simply became"
10'000 new Afghani worth 1 apprx. $233 USD

No one made money on this


Actually they did make money on this $21.42 per million :D

[Dinar Skeptic]

So, the models we have before us, Kuwait and Afghanistan, are neither valuable in a short time. Afghanistan's profit was neglible, and Kuwait's never dropped so low, nor did it rise quickly.

It all took a long time. So it's not going to happen, folks, I'm sorry. I know after the 16th you'll think I told you so, but it's just not in the cards.

(edited off topic remarks )

[J007m]

Found this statement from a seller on Ebay.



But I checked the rates on a currency exchange website - www.oanda.com and I was astonished. If you had bought about £165 worth of Afghanistani currency during the war on terror in the summer of 2002 the exchange rate was about 7400 = £1.

By February 2003 the exchange rate had dropped to around 68 = £1.

In other words your £165 was now worth over 100 times more!!! You would now have about £17,000."

Thanks to this thread our eyes are being opened to the Afgan money myth.

[gbarton13]

Found this statement from a seller on Ebay.



But I checked the rates on a currency exchange website - www.oanda.com and I was astonished. If you had bought about £165 worth of Afghanistani currency during the war on terror in the summer of 2002 the exchange rate was about 7400 = £1.

By February 2003 the exchange rate had dropped to around 68 = £1.

In other words your £165 was now worth over 100 times more!!! You would now have about £17,000."

Thanks to this thread our eyes are being opened to the Afgan money myth.

That statement is totally false and that guy is misleading people. Revaluing currency is not appreciation.

[Chaka]

JEFFP is correct re: afghani
therefore thread is closed