AFA (Afghanistan Afghani)

AAA

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 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.

RELATED TERMS
  1. Currency

    A generally accepted form of money, including coins and paper ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  4. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
Related Articles
  1. Currency Exchange: Floating Rate Vs. ...
    Forex Education

    Currency Exchange: Floating Rate Vs. ...

  2. Top 7 Questions About Currency Trading ...
    Forex Education

    Top 7 Questions About Currency Trading ...

  3. 8 Basic Forex Market Concepts
    Forex Education

    8 Basic Forex Market Concepts

  4. Dollarization Explained
    Forex Education

    Dollarization Explained

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center