The Afghan afghani serves as the official currency of Afghanistan, abbreviated as “AFN,” and functions as a medium of exchange within the country. Since its introduction in 1925, the afghani has replaced the Afghan rupee and has undergone several redenominations throughout its history. Initially, the afghani was equivalent to 1.5 rupees when it was first introduced.

The most recent redenomination took place in 2003, where the exchange rate was set at 1,000 old afghanis for one new afghani. The Central Bank of Afghanistan acts as the primary regulatory authority for the afghani, tasked with maintaining the stability of the Afghan economy, including the currency's exchange rate. Additionally, the bank oversees commercial banks in the country and provides guidance on monetary policy.

The afghani is available in various denominations: 1, 2, 5, 10, 20, 50, 100, 500, and 1,000 afghanis, along with coins in denominations of 1, 2, and 5 afghanis. Furthermore, the afghani is subdivided into 100 puls.

Located in South Asia, Afghanistan has a population of around 38 million people and is recognized as one of the poorest countries globally. The Afghan economy heavily relies on agriculture, with opium being a significant export crop. Despite facing economic challenges, Afghanistan has seen progress in recent years, with an average GDP growth of approximately 2.5% over the past decade. Nonetheless, the country continues to grapple with substantial issues, including high unemployment, poverty, and security concerns.

In summary, the Afghan afghani is the official currency of Afghanistan, regulated by the Central Bank of Afghanistan. It has experienced several redenominations, the latest being in 2003. The currency is available in various denominations and is further divided into 100 puls. Despite recent advancements, Afghanistan still confronts considerable economic challenges.