DEFINITION of 'AFA (Afghanistan Afghani)'
The currency abbreviation or currency symbol for the Afghanistan afghani (AFA). The Afghanistan afghani is made up of 100 pul. The new afghani replaced the prior currency in early 2003, due to the low relative value of the nation's currency.
The currency symbol that the Afgahanistan Afghani is represented by is:
BREAKING DOWN 'AFA (Afghanistan Afghani)'
The afghani was first introduced in 1925 to replace the Afghan rupee at a rate of 1 afghani to 1.1 rupees. This conversion was based on the silver contents of the last rupee coins compared to the replacement afghani coins. In 1936, AFA was pegged to the Indian rupee at a rate of 4 afghani to 1 Indian rupee. During most of its life, the afghani has been pegged to the U.S dollar (USD), at rates starting in 1940 of 13 afghani to 1 U.S. dollar, and devaluing to a rate of 50.6 afghani to 1 U.S. dollar in 1982.
The current afghani was introduced between October of 2002 and January of 2003, replacing the existing afghani at a rate of 1,000 to 1. The new afghani was valued at 43 afghani to 1 U.S. dollar. After depreciating for many years, in 2004 the afghani appreciated in value against the U.S. dollar. This can be attributed to the relative stability of the new currency and promotion of its use within the country.