Thursday, January 15, 2004

::The exchange price for the ID against the US dollar has increased considerably in the last few days; from 1620 ID for 1 $ to about 1000 ID for 1 $ then declined again to settle at about 1400 ID for 1 $ this morning.
People are in a state of confusion for this wide range of price variation, and no one could determine what the actual reason is.

::Some suggest that this situation is caused by, reaching the end of the time limit for dealing with the old currency. And as the new one is well protected from faking and still available in fewer amounts than the old one (there were huge sums of faked money in Iraq and these are out of exchange now), then it’s natural to have its exchange value increased.

::Others suggest that there have been huge (money smuggling operations) across the borders, by merchants from the neighboring countries who desire to make benefit from illegal money transfer, ie. Withdrawing the money from the Iraqi market to increase the price of the ID and later pump the money back to Iraq to get the price difference.
I see(from my experience) that the 1st. theory is more acceptable, and if that was true and the price remained around 1400 then this means that salaries will be more capable of satisfying the needs of people.

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