IMF Staff Country Reports

This 2005 Article IV Consultation highlights that over the last 12 months, the Afghan authorities have made further progress in rebuilding institutions and stabilizing the economy. In a challenging environment, dominated by the difficult security situation and parliamentary elections, the authorities have continued to pursue prudent fiscal and monetary policies and have implemented a number of important institutional and structural reforms that have contributed to strong growth, moderate inflation, a stable exchange rate, and fiscal consolidation. The authorities have also modernized central bank operations and reinforced its supervision capacity.