In a bid to create a market driven interest rate structure and fine tune liquidity, the Afghan Central Bank will on Sunday issue its first "capital notes" - the only financial instrument available in the war-damaged country.
Available only to the 10 licensed commercial banks, the notes will be auctioned at par, denominated in Afghani and issued in book entry form - although there are plans to swiftly move participants to an electronic trading system.
"This is just a first step, but an important first step for the banking system," said Dan Berney, a financial expert with the US Agency for International Development (USAID), which is helping the central bank re-organise after decades of conflict.
The notes will be issued initially with overnight and 128-day maturities, but there are plans to also introduce 91- and 182-day versions.
There will be a maximum of 50 million Afghanis (around $1.11 million) available on overnight maturity and 500 million on one-month.
"There is certainly interest ... all the local banks sent representatives to a test auction we carried out," said Berney.
After decades of conflict during which the Afghan banking system was reduced to little more than mistrusted paymaster for the civil service, the economy is slowly recovering.
The replacement of the currency last year brought money supply under control and regional warlords have stopped printing their own notes.
But many Afghans still prefer the stuffed-mattress approach to savings and with debt considered such a high risk, there is little opportunity for banks to invest their deposits domestically.
Institutions will be allowed to use their compulsory liquidity deposits at the central bank for settlement of the notes, and officials hope the auction will eventually create a market-driven interest rate for guiding debt and credit markets for the Afghan commercial banking sector.
Afghan banks currently offer around 6 percent interest on savings deposits, but loans attract interest of around 2 percent a month - almost a quarter of the principle per year.
Central Bank officials would not speculate on what interest rates Sunday's auction would attract, but at a trial run last week, bids ranged from 2 to 10 percent, and the entire allotment was taken up.
Afghanistan goes to the polls on October 9 for its first direct presidential election, which sees interim leader Hamid Karzai facing 17 opponents.
Economists say a successful and peaceful election could help kick-start the economy of one of the region's poorest nations.