There is a French Orientalist Painting by Etienne Dinet, "The Hunter", 1902, which shows a khodmi within the belt sash of an Algerian Man. I would assume that this is how they were worn either tucked into the belt or hanging from the suspension ring.
Rich, I believe you are correct in that the leather strip is threaded through the handle hole to keep a hard grip when using, as these are everyday knives that come in many different sizes and are still used today in Algeria.
-Geoff
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