Market Operations Directorate General
Vision:
To have an efficient system for managing foreign currency reserves aimed at safeguarding assets, ensuring adequate foreign currency liquidity, obtaining suitable returns, and effectively implementing monetary policy to maintain the stability of the afghani’s value.
Mission:
The mission of the directorate is to manage foreign currency reserves, implement monetary policy by conducting regular foreign currency and capital notes auctions, provide necessary banking facilities, issue letters of credit to government and semi-government offices, and publish official foreign exchange rates in accordance with the established procedures.
Objectives:
The Market Operations Directorate General has the following objectives:
- To effectively implement monetary policy;
- To manage international foreign exchange reserves;
- To provide sufficient foreign currency liquidity;
- To provide Letters of Credit facilities to the government and semi-government institutions;
- To provide necessary banking facilities for the DAB’s relevant directorates and eligible banks; and
- To regularly release the official exchange rate.
Structure:
The Market Operations Directorate General has 22 employees, who, in accordance with their job descriptions, are assigned to and carry out their duties within the following five sections:
1. Foreign Currency Reserves Management Section
The main duties of the section are:
- To manage and invest foreign currency reserves and prepare periodic reports on them;
- To maintain regular contacts with correspondent banks and relevant foreign financial institutions;
- To ensure availability of enough foreign currency reserves for fulfilling liquidity needs;
- To coordinate investment committees’ meetings; and
- To oversee the performance of investments and deposits.
2. Foreign Currency Reserves Risk Analysis Section
The main duties of the section are:
- To conduct risk management of foreign currency reserves;
- To prepare periodic analytical reports on foreign currency reserves–related risks;
- To conduct research on international markets and potential investment opportunities for foreign currency reserves; and
- To perform periodic rebalancing of index portfolios.
3. Foreign Currency Auction and Exchange Rate Section
The main duties of the section are:
- To prepare the official exchange rates and respond to related inquiries from relevant institutions;
- To conduct regular market surveys on matters related to foreign exchange rates;
- To conduct foreign currency auctions in accordance with the relevant regulations and procedures; and
- To communicate with auction participants and national and international institutions on auction-related matters.
4. Capital Notes and Banking Facilities Section
The main duties of this section are:
- To manage capital notes auctions and the acceptance of securities and banking products in accordance with the relevant regulations and procedures;
- To oversee the secondary market for capital notes as stipulated in the regulation;
- To provide banking facilities to relevant directorates and eligible banks; and
- To adjust the required reserves and process other obligations of financial institutions in line with the applicable procedures.
5. Letters of Credit Section
The main duties of this section are to:
- To issue letters of credit for government and semi-government institutions and prepare status reports;
- To provide facilities for the amendment, termination, and settlement of letters of credit; and
- To communicate with relevant authorities and correspondent banks on matters related to letters of credit.