Afghanistan Afghani
The currency used in Afghanistan is the afghani, it is a straightforward decimal system and originally was sub-divided into 100 pul.
The afghani was initially introduced in 1925, but in its present guise it is a fairly new currency having only been circulated from 2002 onwards. This time it has no sub-divisions, just plain straightforward afghanis.
The afghani is identified by the letters AFN.
History
The afghani was originally introduced in 1925 as a replacement for the Afghan rupee. Like many currencies in this area, it was originally pegged to the Indian rupee, but since 1940 has been pegged to the US $.
The afghani was for some time a relatively stable currency, albeit one that did not have a great influence.
However, periodically from 1979, it experienced significant periods where its value fluctuated wildly. It also found itself under threat due to the fact that what seemed like everyone in Afghanistan was actually printing their own money! Warlords and counterfeiters as well as some political parties were all busily creating their own banknotes, so that they could literally buy what they wanted: the difficulty was that they were often without the required funds to make sure that people could get their money if they wanted to cash them in. So the whole fiscal system was in chaos and no-one really knew what was legitimate money and what was not.
This situation changed in 1996, when the Taliban took control over running the country. The Taliban were (and still are) a fairly radical Islamist movement, based on the Sunni teachings of Islam. They ruled Afghanistan in the years 1996-2001.
So in 1996, the governor or chairman of the national Taliban Bank decided to announce that the 100 trillion afghani notes that were in circulation were actually worthless. He then cancelled any further money being printed. By this time inflation had crept up to such an extent that the afghani was indeed worthless on the international market, with 1 US $ being worth 21,000 afghani. However, political wrangling then ensued and although the afghani stabilised somewhat in 2000, when it was worth some 6,400 to a dollar, it was then to go into meltdown and the result was that by the year 2002 (just after the US invasion) it took 43,000 afghanis to buy just one US $.
So there was little choice but to issue a new afghani, since the old one was simply so worthless. But the issuing of the new currency was actually far from straightforward, due to the fact that it was issued with 2 separate values. One related to banknotes that had been issued by the new Northern Alliance (a US backed regime) and the other value was for notes issued under the auspices of the former President. That must have proved quite a logistical headache for banks and indeed Joe Public when they were trying to buy and sell items! US dollars had been in wide use from 2002 until 2004, when the Central Bank of Afghanistan made a specific ruling that the afghani should be the measurement of currency used.
The Money
The notes are circulated in denominations of 10, 20, 50, 100, 200, 500 and 1000 afghani. Coins are issued in the form of 1,2 and a 5 afghani piece. There are no sub-divisions.
Travel to Afghanistan
Due to the fact that Afghanistan has seen more than its share of political problems over the last few years, with the Soviets invading, power being taken by the Taliban, Osama Bin Laden reputedly holed up in the countryside as well as the US invasion, travel to Afghanistan is really not recommended.
Foreigners are perceived to be a very high risk, particularly foreigners who are non-Muslim. As a result the government decreed in 2007 that it would not allow non-Muslims to travel either from or to Kabul (the capital of Afghanistan) without an armed escort. So travelling to this area is really inadvisable and since the major international airport is located at Kabul, this makes it a very high risk destination.
Some people feel that it is still worth the risk because if you venture into the interior, you will find a country that is so wild rugged and uncivilised it is an absolute joy for anyone who wants to see a country that is really different.
That being said, the risks when travelling to Afghanistan really are high and it is a country that exists with only partial supplies of electricity as well as poor road networks and an ever constant threat of landmines that have been planted for some time. Around 60 people every month die due to landmines.
Generally the north of the country is the one area that is considered to be reasonably safe: but only by Afghani standards, not by general western standards.
The Taliban has actually stated that one of its main goals is to target foreign nationals with the purpose of either abducting them or killing them (or in some instances both).
Thus if you are considering travelling to Afghanistan you need to first ask about getting an armed escort for the duration of your stay and, needless to say, this is one area that you really should not skimp on. Always try to make sure that you can find a reputable company that will not simply take your money, but when the going gets tough, they will simply disappear.
You should also check with your embassy before your travel. Is it safe to visit Afghanistan? Will they assist if you come into difficulties? What exactly will they do to help you and your family/friends if you are abducted?
These are important questions, because if you do not check with the embassy and simply pack your bags and land in Afghanistan, you may well find that if you are abducted, the embassy will do little to assist, since they may feel that your trip has been foolhardy.
Another potentially expensive issue that you need to consider is insurance. Increasingly, insurance companies are unwilling to pay out if something happens in a country that is considered to be exceptionally dangerous (as Afghanistan is). Thus you could find that if you are injured or require medical assistance, you will have to pay the bill yourself, as your insurance company will not meet the cost. You may have to take out very costly and specific insurance, just to ensure that you are adequately covered and even then it is unlikely that you will be covered for all eventualities.
Indeed the situation is so bad that even the United Nations has actually stopped any road missions and it is unlikely that these will be re-instated for some time.
The reality is therefore that there are a lot of reasons why travelling to Afghanistan is not a good idea, unless you absolutely have to travel to the area. In which case you should exercise extreme caution and also ensure that any advice that has been issued by your government has been carefully followed. This means that you should not travel if you are advised not to unless your visit is deemed necessary.
If your visit is indeed necessary and cannot be put off, then extreme care should be taken at all times during your visit. Afghanistan is effectively a war zone and people should be mindful of this as well as aware of the fact that there are some people who hate westerners and hold them accountable for all the evils of the world.
Getting Hold of Afghanis
Travel to Afghanistan is therefore not to be taken lightly and some careful planning is required before you travel. But at least there is one more positive angle to Afghanistan: the good news is that there are ATM machines in Kabul, so at least you will be able to use your plastic to get hold of some money. However, the ATMs are really only located in Kabul, so if you go into some of the more remote areas of Afghanistan, they will simply be non-existent. You will also find that they are not everywhere and so you will need to use a guide or a member of your security staff to ensure that you know where they are located.
You may find it easier to take travellers cheques in US dollars and then cash them in at the bank. This also avoids the need for you to linger in the street at an ATM, when you might be quite vulnerable. It is also not a good idea for you to have to scour the streets looking for an ATM, since this could actually mean that you get lost or take a trip down a less than salubrious street.
Remember the terrorist threat is real and there are pockets of anti-western feeling throughout Afghanistan, which means that if someone sees a foreigner who is obviously a little lost, there instinct may not be to help, but simply to exact some kind of revenge on the west.
Hotels are also a specific risk, since these are the places that foreigners will reside in when in Afghanistan.
Overview
Due to the fact that Afghanistan has experienced significant turmoil over a long period, it is unlikely that the situation will be resolved for some time. There are pockets of Taliban supporters all over Afghanistan and there is also a deep rooted mistrust of many westerners. This means that it will not simply become a 'safe' destination overnight and it is possible that the anti-western feelings will continue to make Afghanistan an unsafe destination for some time.
It is undoubtedly a very beautiful country and one that seems to offer a mysterious face to the world, with little known or understood about its culture and its people. Some of them live in the most inhospitable areas of the world, with the wind blowing dust into their faces for almost 24 hours a day.
Yet the people of Afghanistan are a proud people and not all of them are influenced by Taliban thinking or anti-western feelings. Whether these people will be enough to turn Afghanistan around, no one yet knows, but all we can do in the interim is to hope that indeed they can!