TALEBAN ARREST 69 AFGHANS ON CURRENCY CHARGES

03:39 a.m. Feb 05, 1998 Eastern

By Aziz Haidari

ISLAMABAD, Feb 5 (Reuters) - Afghan Taleban security forces have arrested 69 currency traders in Kabul for trading without a licence in contravention of new foreign exchange laws, the Islamic militia's Radio Shariat reported.

The radio said the men were detained for dealing without a licence and for buying foreign exchange at rates above those officially set by the Taleban.

It was the first time the Taleban authorities had announced the arrest of hawkers who used to make their living buying and selling foreign exchange to individuals near Kabul's main bazaar.

This week the Taleban effectively banned a free market in dollars and Pakistani rupees by announcing a daily rate at which the currencies can be bought and sold against the afghani unit.

The Taleban have also introduced a licensing system for foreign exchange dealers who have to pay one million afghanis (about $33.0) for a permit and a further deposit.

Major currency traders with offices in the bazaar have registered and bought licences but hundreds of small traders or hawkers who mad their living on small transactions have been forced out of business, Kabul residents said.

In its report monitored in Pakistan on Wednesday, Radio Shariat said currency traders without a licence faced up to two years imprisonment and the confiscation of their money.

It said currency traders should ``rush'' to the authorities in their area to get a licence and to trade only at rates set by the central Bank of Afghanistan.

The Taleban have set a new rate of 30,100 to a dollar against the previous free market rate of 31,200.

Dealers said the imposition of a fixed rate was aimed at stabilising the currency market. The Taleban closed all banks.

But they said a small underground free market still existed, despite the crackdown. No rates were immediately available.

Most foreign currency in Kabul comes from foreign aid workers and a limited number of residents who have relatives or family members abroad and access to foreign exchange.

The afghani has seesawed since the collapse of a communist backed government in 1992. The factional fighting that followed has divided the country in two with both the Taleban in the south and the opposition alliance in the north using their own afghanis.