Investopedia

Continue to Site »

AFA (Afghanistan Afghani)

Filed Under » , ,
Dictionary Says

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:

Currency Symbol AFA (Afghanistan Afghani) - Forex - Investopedia
Investopedia Says

Investopedia explains '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.

Articles Of Interest

  1.

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.

  2. Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.

  3. 8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.

  4. Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.

  5. 6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.

  6. What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.

  7. If a country's currency is determined by the strength of its economy, why isn't the U.S. dollar worth more than the British pound?

    Generally speaking, when Country A's currency is worth more than that of Country B, it does not necessarily mean that Country A's economy is stronger than B's. For example, Japan's economy is ...

  8. The Yen Is Setting Up To Be An Attractive Long-Term Investment

    As Japan embarks on quantitative easing, the yen has come under pressure. Will it continue to be the source of big profits in the latter half of 2013?

  9. Trading Forex Trends With MACD And Moving Averages

    Although based on short-term trading, keeping the long-term picture in mind will help investors trade with the trend.

  10. Investopedia Forex Outlook For April 2013

    Looking forward into April, traders should watch for potential profit taking in the U.S. after its run-up and a potential bottom for the euro, after the aftermath of the Cyprus decision to tax ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center