Frankel, Jeffrey A., 1999, “No Single Currency Regime is Right for All Countries or at All Times,” NBER Working Paper No. 7338 (September), (National Bureau of Economic Research).
Prepared by Ron van Rooden and Louis Dicks-Mireaux.
See Chapter VI for a description of the state of the financial system in Afghanistan in 2001 and its development thereafter.
Due to the break in series because of the introduction of the new currency, the annual growth rate is calculated by multiplying estimated quarterly growth rates.
The government occasionally ran an overdraft in the third quarter of 2002/03 and was still in overdraft by the end of the quarter. These overdrafts remained fairly limited in size, however. To some extent, the occurrence of these overdrafts reflected the procedure by which the government received foreign assistance only after expenditures have been made and their eligibility to be covered by such assistance has been established. But it also reflected a lack of adequate monitoring and communication between DAB and the MoF. An increase in available foreign financing for the budget allowed for the overdraft to be eliminated in the fourth quarter of 2002/03.
Including $196 million of gold valued at $279 per ounce.
The amount of currency in circulation could be calculated simply as the amount of currency delivered by the printer, less the amounts remaining in DAB’s vaults. But little or no information was available on a timely basis on amounts held in the vaults of DAB’s branches. Until adequate communications have been established with the branches, currency that may be held there must be assumed to be in circulation.