November 29, 2001	Thursday	Ramazan 13, 1422

PESHAWAR, Nov 28: The exchange value of Afghanistan’s national currency — afghani — against Pakistani rupee fell during the last couple of days, market forces told Dawn here on Wednesday.

“Investors, big and small, exercising restraint, are not making investments,” said a big currency dealer operating in the Peshawar’s hub of currency dealing — Chowk Yadgar.

Afghani on Wednesday started with an exchange value of Re1 to 641 Afghani (selling) and 632 Afghani (buying) — the benchmark at which the rate closed down on Tuesday.

Though a large number of small investors drew to the Faiz plaza, the centre of Afghani trading in Chowk Yadgar, the market did not experience a hectic day as the investors appear to be cautious, the sources said.

Recession has mainly been attributed to major factors: 1) Afghani currency bills are available in abundance in the local currency market and 2) investors are hesitant to exhaust their existing stocks of Afghani currency bills or add more to their stocks amidst mixed reports emanating from Bonn — the venue of the under-progress Afghan peace summit.

The Afghan national currency experienced boom with its exchange value against Pakistani rupee jumping from Re1 to 1,174 Afghani before September 11 to Re1 to 350 Afghani in the last week of September following the reports that former Afghan king Zahir Shah has accepted to play a future role in the post- Taliban situation.

One month back, market was buzzing with hopes that Afghani would gain major ground against Pakistani rupee when peace talks aiming to bring king Zahir Shah back in the government gets underway.