The Central Bank of Afghanistan (CBA) on Monday said they pay nearly three AFs to print every Afghani bank note and that annually they collect and burn five billion AFs worth of worn-out and old Afghani notes.
According to Central Bank statistics, they have burned 41 billion AFs worth of worn-out Afghani bank notes in the past 11 years.
“Burning such a big amount of money is a big cost and people should keep the money new because we pay approximately 2.8 AFs to print every bank note,” said Emal Hashor, Central Bank spokesperson.
A number of Parliament Members (MPs) meanwhile said the collecting and burning process of old bank notes is not clear and it is possible that a large amount of the collected money is injected back in to the markets.
According to MPs, although the process of collecting worn-out bank notes has been ongoing, still there is a large amount of old bank notes in the market.
“The current process of collecting and burning old bank notes is very unclear and corrupt. So this method should be changed and the Central Bank should try more to prevent the old bank notes from returning back to market,” said Ramazan Juma Zada, MP.
Meanwhile a number of money exchangers in Saray Shahzada, the money market, said currently a large amount of bank notes, especially the five up to 100 Afghani bank notes are very old.
Although the Central Bank said they burn the money under supervision of an authorized commission, a number of economic analysts said the Central Bank should use more standard methods to burning old bank notes to prevent corruption.