Excitement at new Afghan currency

One new Afghani is worth 1000 old ones

By Kylie Morris in Kabul

Afghanistan has begun distributing new bank notes in an attempt to introduce one currency for the whole country.

And in the lobby of the Central Bank in Kabul there is a real sense of excitement at the changeover.

Crowds have gathered to exchange their old notes for new money that is a thousand times more valuable.

Before, if people wanted to buy bread, they had to take stacks of money with them to do it

President Hamid Karzai

Bank tellers are sitting at windows where notices are displayed to inform people where they should hand over their old notes and where they should collect their new.

There is a sense of nervousness though, and it is not only ordinary Afghans who are worried about this change.

Potentially it is a massive step for the new government of Hamid Karzai and it could, if all goes well, boost its authority and credibility.

Wads of notes

Under the old system different groups printed their own money in Afghanistan so the Central Bank did not really control the issuing of cash and did not really know how much money was out there in the market place.

It is a massive logistical exercise to change the currency in Afghanistan where telecommunications and transport are poor.

People are still being educated about the notes and they will have two months to upgrade from the old to the new.

The introduction of the new afghani is a risky business for all concerned but if managed well it promises economic and political benefits.

Before the change people had to carry huge wads of notes for even a simple transaction.

"Before if people wanted to buy bread, they had to take stacks of money with them to do it," President Hamid Karzai said.

"With the new money you'll be able to take one note and buy what you want."

The new notes were printed in Germany and Britain and once the changeover has taken place the old money will be burnt.