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[ This message has been sent to you via the CASI-analysis mailing list ] Moments after sending the previous message I received the latest from our correspondent, which basically answers my question: the dollar is falling sharply against the dinar and Iraqis who are paid in dollars are suffering. Important article, please read... --------- Original Message -------- From: Dahr Jamail <dahrma90@yahoo.com> To: dahrma90@yahoo.com <dahrma90@yahoo.com> Subject: 15 Jan, Baghdad News Date: 15/01/04 05:54 > > > > 15 January 2004 > Economic Crisis, Threats of Jihad, and more Violence > in Iraq > > The big news today is the plummeting value of the US > dollar in Iraq. Here are some figures to give you an > idea of the current financial crisis in Iraq: > > 2 months ago: > 1$ = 1950 Iraqi Dinars (ID) > > The value continued to drop, and 2 days ago the value > was: > 1$ = 1410 ID > > Yesterday: > 1$ = 1100 ID > > Keep in mind that all Iraqis working for the CPA are > paid in US dollars. In addition, all of the severance > pay for Iraqi ex-Army personnel, unemployment > payments, and a large percentage of Iraqis are paid in > US dollars. > > When an Iraqi ex-Army man was being paid 60$ per month > by the CPA, this translated to 120,000 ID’s 2 months > ago. Now he makes 60,000 ID’s. At the same time the > cost of basic food products has been rising, and > continues to rise. How is this man going to make ends > meet? > > Imagine if your pay scale remained the same at your > job, yet in two months time the value of the US dollar > dropped by 50%, so it now took you twice as much money > to buy food and pay your mortgage? Getting a second > job would be impossible, because unemployment is 60% > in your country and rising. > > Khalil Abrahim works as a carpenter. He had a business > agreement with a man to repair his home and make him > some furniture. They agreed on an amount to be paid > for the work at 1,100,00 Iraqi Dinars ($550 US), made > a little over two months ago when the exchange rate > was 2000 ID’s per US dollar. Khalil was advanced > 400,000 ID ($200), and used this money to buy his > supplies. > > He finished the job the day before yesterday, and went > to collect his money. The man told Khalil he would pay > him the remaining amount, ($350), at the rate of > exchange that day, which was 1410 ID per US dollar. So > both men lose money. If Khalil is paid at the rate of > 1410 ID, he will lose $103.25 (205,500ID). If the man > who hired him pays him at the original exchange rate > of 2000 ID’s per dollar, he will lose the same amount. > > Unable to reach a compromise thus far, Khalil remains > unpaid, and doesn’t know how to resolve the situation. > > This is but one example of a problem plaguing > businesses, big and small, in Iraq on the day, > ironically, that Iraqi currency with the face of > Saddam Hussein on it is no longer valid. > > Where will this lead? How will this be resolved? > > Mr. Shuker is a Jordanian business man who does much > work with the Iraqi government. He bought several > containers of televisions to import to Iraq to sell, > at $20,000 per container of TV’s. If he sells these in > Iraq, he will lose money on his merchandise now. He > told me he cannot do any business now with the dollar > so low. Any transaction he makes will lose him large > amounts of money. > > When the ID was over 2000 per US dollar, businesses > and the government of Kuwait bought heaps of them and > took them out of the country. Now, because of the > physical lack of ID’s in Iraq, their value has risen > strongly against the US dollar. Think about the > disparity now caused that businesses in Iraq have to > deal with. > > If the CPA does not step in to resolve this economic > crisis, the likelihood of crime increasing in an > already abysmal security situation is very high. > > Meanwhile, food costs continue to rise and there is no > solution to the rampant unemployment problem. > > All of this with the backdrop of tens of thousands of > people (mostly Shia) demonstrating in Basra today, > demanding democratic elections within the next 2 or 3 > months. At the demonstrations Ali al-Hakim al-Safi, a > senior Basra cleric, told the crowd that the Shia > people would seek their goals by peaceful means at > first, but were prepared for other measures if > necessary. He stated, > > “We do not need to use violence to get our rights > while there are still peaceful ways we can work > together, but if we find peaceful means are no longer > available to us we will have to seek other methods.” > > Thus the specter of Jihad looms over Iraq. > > At the same time, violence continues to the north of > Baghdad. 14 people died in various attacks on US > troops. 8 Iraqis were killed during an attack on US > troops near Samarra. On a road between Samarra and > Tikrit guerrillas attacked vehicles carrying KBR > employees, killing three men as well as wounding a US > soldier and US civilian. > > Also last night, a soldier with the 101st Airborne > Division died in a ‘non-hostile incident’ in Mosul. > > > > > > __________________________________ > Do you Yahoo!? > Yahoo! Hotjobs: Enter the "Signing Bonus" Sweepstakes > http://hotjobs.sweepstakes.yahoo.com/signingbonus > ________________________________________________ This email is a service of www.endthewar.org _______________________________________ Sent via the CASI-analysis mailing list To unsubscribe, visit http://lists.casi.org.uk/mailman/listinfo/casi-analysis All postings are archived on CASI's website at http://www.casi.org.uk