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Businessmen in trouble as banks deny fractional banknotes

Businessmen in trouble as banks deny fractional banknotes

author avatar
15 Aug 2022 - 08:25
Businessmen in trouble as banks deny fractional banknotes
author avatar
15 Aug 2022 - 08:25

KANDAHAR (Pajhwok): Factories’ owners and traders in southern Kandahar province complain that branches of Da Afghanistan Bank or central bank refuse to accept small denomination banknotes when monthly electricity bills are being deposited.

Gul Agha, owner of an ice factory, said the problem of not accepting small banknotes by the banks persisted since long but it had worsened recently.

He told Pajhwok Afghan News that customers brought them low denomination banknotes (like ten, twenty, fifty and hundred afghani banknotes), but the banks only accept ten to twenty percent of the notes and demand 500 or 1000 banknotes.

He said: “We received 1,300,000 afs electricity bill for our ice factory; the bank even does not accept 300,000 fractional banknotes. Where should we take these notes? If we want to change them to 1,000 or 500 banknotes, we need to change them to Pakistani rupees first, then back to afghanis, this deal is harming us a hundred thousand afghanis.”

He said if the problem remained unsolved, businessmen and industries would continue to face much financial losses or even default on utility bills.

Haji Gull Mohammad, a factory owner, told Pajhwok the government banks do not accept small currency notes because the tellers could not count them.

Ha said if the issue remained unaddressed, people may turn to the use of foreign currencies which may have a negative impact on the afghani.

He added: “Businessmen often accept small banknotes from their customers, but the banks accept only its 10 or 20 percent, it is damaging the business.”

SayedSarwarAmani, the head of Kandahar’s chambers of commerce, call the issue a big problem and said it would be more damaging to the business if not resolved.

Amani said if government banks continued to not accept small banknotes, the afghani will lose its value and foreign currency will remain dominant in circulation.

He added: “We ask the officials to respect the national currency, if banks do not accept fractional banknotes, the afghani will lose its value, if the banks accept 50% of fractional banknotes, the problems will be solved.”

Haji Qand Agha, the head of money changers union, said money changers helped a lot in this issue because they accepted all kinds of banknotes.

He asked the government to print new banknotes because the fractional banknotes were too old that was why the banks did not accept them.

He added: “The fractional banknotes are mostly old; the banks do not accept them because they are worn out and hard to count. The only solution for this problem is to print new banknotes.”

Pajhwok tried to get the opinion of Da Afghanistan Bank officials, but they did not want to comment on the issue.


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