Between October 7, 2002, and January 2, 2003, a new afghani was introduced with the ISO 4217 code AFN. No subdivisions have been issued. It replaced the previous afghani at two distinct rates. Issues of the government of President Burhanuddin Rabbani were replaced at a rate of 1000 to the new afghani, whilst the issues of Abdul Rashid Dostum (the Northern Alliance) were replaced at a rate of 2000 to the new afghani. The new afghani was valued at 43 afghani to the U.S. dollar. Prior to the reissue, there were more than 15 trillion afghani in circulation after unrestrained printing under Taliban rule and during wars and occupation.
In October 2003, Afghan Central Bank governor Anwar Ul-Haq Ahadi announced that Afghans should use their own afghani currency in daily transactions rather than United States dollars or Pakistani rupees. This was in preparation for October 8 when all prices in the Afghan marketplace were to be specified in afghani.
On 7 October 2002, banknotes were introduced in denominations of 1, 2, 5, 10, 20, 50, 100, 500, and 1000 afghanis. The 1, 2 and 5 afghani notes were replaced by coins in 2005. In 2004 and 2008, the security features on several denominations were improved.