Afghanistan currency strengthens

The Afghani is expected to drop sharply if the US take military action

By the BBC's Afghanistan correspondent Kate Clarke

Money changers in Kabul have reported that the national currency of Afghanistan has strengthened, after losing 10% of its value in the initial aftermath of the attacks on America.

The money changers said the currency had rallied after the exiled former King of Afghanistan, Zahir Shah, made a rare public statement on radio, saying that efforts were underway to resolve the crisis.

Money changers also pointed to the sealing of Afghanistan's borders, which means that new inflation-causing money, printed by the opposition, is not getting through to Taleban controlled areas.

The rise in value, or more usually the fall, of the national currency of Afghanistan, is one of the more accurate barometers of people's hopes and fears in a country where there are no opinion polls.

Exiled king could play an important role in forming a post-Taleban transitional government

Demand for cash

Afghanistan relies heavily on imports for food and fuel. Rising prices and the withdrawal of western aid agencies have contributed to the currency rise as the demand for cash increases.

Money changers in Kabul pointed to people's hopes that limited and focussed military action would be followed by the return of the former king of Afghanistan, Zahir Shah.

He may have been in exile in Rome since 1973, he may be in his late eighties, and most people agree he was never a very effective ruler, but Zahir Shah was the last legitimate leader of Afghanistan and symbolises an era of peace and stability.

He enjoys broad support and is a figure-head in a transitional time.

He is probably the only person whom Afghans could unite behind.

He has spoken of the possibility of holding a gathering of tribal and ethnic leaders, intellectuals and Muslim clerics, with the intention of ushering in a legitimate government.