DAB Presents Annual Performance Report

During a press briefing hosted at the Government Media and Information Center, representatives from Da Afghanistan Bank (DAB) the center bank of Afghanistan presented their annual performance report.

The officials outlined the institution’s key strategic priorities, which encompass Afghanistan’s monetary policy formulation, currency exchange management, administration of official reserves, currency printing and distribution, supervision of banks and non-banking financial entities, and the overall enhancement and fortification of the country’s financial and banking systems.

As per the officials, over the preceding year, Da Afghanistan Bank has upheld the Afghani’s value against foreign currencies through effective monetary policy implementation and has made notable strides towards meeting inflation control objectives.

They elaborated that, thanks to Da Afghanistan Bank’s persistent efforts, the Afghani appreciated by 17.25% against the U.S. dollar.

The bank also disclosed that weekly deposit limits for Afghani accounts surged from 70,000 to 150,000 Afghanis, with monthly limits increasing from 250,000 to 500,000 Afghanis. Similarly, in U.S. dollar accounts, weekly limits rose from $1,000 to $2,000, and monthly limits from $3,000 to $6,000.

The officials reported that over the year, Da Afghanistan Bank retrieved and disposed of worn-out banknotes totaling 7,186,544,000 Afghanis from urban and provincial areas, infusing fresh banknotes into circulation to facilitate smoother transactions.

Additionally, they highlighted the approval of a law for mechanizing money exchange and payment service providers by the Supreme Leader of the Islamic Emirate, leading to significant strides in regulating, standardizing, and mechanizing non-banking financial activities.

In the same period, 149 licenses were granted to money exchange offices and payment service firms, raising the total licenses issued to 1,780. The National Strategy for Electronic Money Usage was devised, with five electronic money institutions receiving operational licenses and 1,258 POS devices installed in various retail establishments, eateries, medical facilities, and public and private offices.

The successful management of inflation within acceptable bounds has bolstered confidence in the Afghani and improved Afghanistan’s economic prospects, underscoring the vital role of Da Afghanistan Bank in steering the nation through economic hurdles.

Serving as the regulatory body for the national banking system, Da Afghanistan Bank has diligently overseen bank operations. The institution has undertaken substantial measures to ensure banking system stability and security, including the formulation of banking laws and regulations, financial audits, liquidity assessments, identification and rectification of vulnerabilities, and proposal of corrective actions.

Throughout the year, Da Afghanistan Bank conducted five follow-up reviews, two targeted inspections, and 12 surprise audits, including liquidity management assessments, 20 anti-money laundering investigations, and 124 assessments of commercial banks.

Furthermore, 377 money exchange offices and payment service entities were monitored, alongside eight internal and six external audits of electronic money institutions. Additionally, 700 systems were registered and reviewed by the central bank.

Moreover, Da Afghanistan Bank has introduced essential facilities for opening individual accounts, making initial deposits, reactivating dormant accounts, and managing annual fees for both individual and corporate accounts.