Afghan currency hawkers hit by Taleban crackdown

By Sayeed Salahuddin

KABUL, Jan 20 (Reuters) - Hundreds of Afghan currency hawkers have lost their livelihoods because of a crackdown by the Taleban on foreign exchange traders, market sources said.

``There were more than 800 hawkers like me in the two main money centres but we have lost our jobs due to the Taleban's policy,'' one former hawker complained.

The Taleban, who say they are on a mission to create the world's purest Islamic state, announced three days ago that foreign currency traders would have to be licenced and registered.

The movement ordered the closure of the currency market for three days, bringing trading to a halt in Kabul's main three-storey money market and in the formerly bustling streets surrounding it, where the hawkers would proffer bundles of 10,000 Afghani (33 cent) notes for smaller buyers. The 10,000 Afghani note is the highest denomination in circulation.

The edict marked the first attempt by the Taleban to regulate foreign currency trading. Rates for the Afghani currency in Kabul normally are pegged to prices from the Pakistani border town of Peshawar.

Dealers are now required to buy a licence for one million Afghanis ($33) and pay a deposit of 20 million Afghanis.

Money markets reopened on Tuesday after the closure, but the small hawkers are upset.

``I cannot work, because I do not have the money for the Taleban's registration rule,'' said a former hawker.

``Big dealers can pay for registration because they have money, and they can fix their favourite rate for currencies in our absence,'' said the man, who wanted to remain anonymous.

``They (the Taleban) said the big dealers had proposed the change. The big dealers have paid for a license and can make it (back) in one day. They openly buy one dollar for 30,800 and sell then to 31,800,'' another former hawker said.

No-one knows how much money changed hands at the market prior to the Taleban directive, but the market, and similar ones in smaller towns, provided the only access to foreign currencies. Afghanistan's banking system has collapsed after more than 20 years of war.

The Taleban have warned that anyone found contravening the directive would be punished and have their money confiscated.

There has been little fighting in recent months between the Taleban and the opposition based in the north of the country and the currency has remained relatively stable.

The price of the Afghani is one of the more sensitive barometers of public opinion in Afghanistan and the value has been known to swing as much as 30 percent in a day.