Monetary Policy Communication

Article 105 Reporting on monetary policy

105.1 Da Afghanistan Bank shall report in writing to the President and the Minister of Finance of Afghanistan if at any time, the net foreign reserve position across the Da Afghanistan Bank reserve accounts declines by more than 20% over a 7 day period.

105.2 Semi-annually, Da Afghanistan Bank shall deliver to the parliament of Afghanistan and publish a policy statement that shall contain:

1) a description of, and an explanation of the reasons for, the monetary policies to be followed by Da Afghanistan Bank during the next six months period;

492) a description of the principles that Da Afghanistan Bank proposes to follow in the adoption and execution of monetary policy during the next two years, or a longer period of time

3) a review and assessment of the adoption and execution by Da Afghanistan Bank of monetary policy during the period to which the last preceding six monthly policy statement relates.

Monetary Policy Decisions are issued in every quarter four times a year after the meetings of Monetary Policy Committee (MPC) members. They contain brief analysis of economic conditions and rationale behind the monetary policy decisions made to achieve the ultimate objective of Monetary Policy i.e. Prices Stability in Afghanistan.

DAB communicates its monetary policy stance primarily through its websites and DAB's social media accounts. The Governor makes a press conference usually after each MPC meeting to present the monetary policy stance to media in addition to uploading the decisions on website and press release. In a bid to improve the communication of monetary policy and transparency, DABwill also publish minutes of the Monetary Policy Committee meetings on its website.

In addition, to raise the level of public awareness towards Da Afghanistan Bank as the central bank and the Monetary Policy stance in particular, Da Afghanistan Bank's staff especially Monetary Policy employees deliver presentations and lectures at various forums, universities and events, and gives interviews to print and electronic media to further clarify the monetary policy stance of DAB.

Recently, the public awareness directorate has been established in the Governor's Office Directorate General to ease the process of Monetary Policy Communication to the general public and promote the use of Afghani in the country through public awareness campaigns, conduct of lectures, TV and Radio ads, installation of billboards, distribution of DAB brochures, manuals etc. and through any other possible means to educate Afghans on main objectives, tasks and policies adopted by the central bank.