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280 APPENDIX IV Banking & Currency The remodelling of the currency in 1927 introduced the Afghani as the unit of the monetary system, as distinct from the old coin, Kabuli. An Afghani is a silver piece, weighing 10 Grams, 90 being fine. It is divided into 100 puls. The 50 puls pieces, called Kirans, are now mostly of nickel. Smaller pieces of 25 puls, 10 puls, and 5 puls are also used. Paper currency was introduced in 1936, and since then has proved to be extremely popular. Before the reign of King Mohammed Nadir Shah Afghanistan had no bank of its own, and the currency and other banking business were carried on by private bankers and moneylenders, mostly foreigners. There were no firms or trading concerns in the country : each trader used to take his goods on his own responsibility to foreign markets and dispose of them at the price ruling on the day or at the price offered. Being always short of funds and in a hurry to go back, he could not wait for better opportunities to sell his merchandise. Usually the foreign traders or business companies which were fully aware of his shortcomings and financial difficulties would join hands against him, making him accept the price offered, however low it might be. Representatives of foreign firms would enter Afghanistan and offer money in advance to local producers on condition that they would sell their goods to them alone at the stipulated prices, which were usually far below the market rates. The Government could not interfere, for they themselves had bound their hands by formal agreements and legal contracts. Moreover the Government had no control over foreign exchange and