Page 344

imports and exports of the country. Generally imports exceeded exports, thereby greatly affecting the exchange value of the Afghan currency. It was to meet this great demand that King Mohammed Nadir Shah established (in 1930) a Joint-Stock Company-Shirkat-i-Ashami-the forerunner of the present Afghan National Bank. The exchange rate of the currency was fixed, private bankings was disallowed, local traders were en- couraged to do all foreign business through the bank and to keep the value of their exports and imports at par. In cases of financial difficulties the bank was to advance money at low interest, thus enabling them to withstand a dull market. Funds were required for launching various development schemes to make the country selfsufficient in certain commodities for which it has adequate supply of raw materials or what could be acquired by further development. So the need for establishing new banks and business concerns arose with the development of natural resources and ever increasing demand of the country for consumers' goods. At present Afghanistan has five banks-(1) Da Afghanistan Bank, (2) Bank-i-Millie (Afghan National Bank), (3) Pashtanay Tijarati Bank (Afghan Commercial Bank), (4) Construction Bank, and (5) Agriculture and Handicrafts Bank. There are no branches of any foreign bank in the country. Da Afghanistan Bank founded in 1938 is a Government concern which performs the function of a Central Bank. It is in reality the old Government treasury put on modern lines and is mainly concerned with issuing currency notes, transacting financial affairs of the State and controlling the exchange rate of the currency. The most important commercial bank in the country is the Bank-i-Millie, located in Kabul and founded in 1935. It has now