News Brief No. 02/93

News Brief: IMF Managing Director Welcomes Afghanistan's New Currency

September 4, 2002

International Monetary Fund Managing Director Horst Köhler issued the following statement today regarding Afghanistan's decision to introduce a new currency:

"The authorities' decision to introduce a new currency is an important step in their efforts to establish macroeconomic stability and to create an environment that is conducive to restoring sustainable economic growth in Afghanistan. The new Afghani will also be a symbol of national sovereignty and unity. The authorities fully recognize the outlook for the currency will to a large extent depend on the fiscal and financial policies of the government, and the Fund welcomes the authorities' demonstrated commitment to implement sound fiscal and monetary policies.

"Of course the introduction of a new currency is a major operation, with numerous logistical challenges to overcome, particularly in a country in a post-conflict situation. The authorities have been addressing these challenges systematically, with the assistance of the Fund as well as other international donors. As a result, the preparations for the changeover are well underway. The Fund will continue to provide technical assistance for this, as well as assist the authorities with the formulation of monetary policy."