IRAQ INCREASES FOOD PRICES, TELEPHONE RATES<br />


IRAQ INCREASES FOOD PRICES, TELEPHONE RATES

  • 15-01-1996 15:00:00   | Armenia  |  World News
BAGHDAD, Jan 15 (AFP -NT) - The Iraqi government has announced a sudden hike in food prices, telephone rates and other services to counter a new drop in the national currency and stem the hemorrhaging of state coffers. Telephone calls to western Europe were increased this week to 17,500 dinars for five minutes, while the same call last week would have cost less than 1,000 dinars. The dinar is worth 3.2 dollars at the official rate but it changes on the black market at 2,800 dinars to the dollar. The average Iraqi earns around 4,000 dinars per month or 1.4 dollars on the black market. The Iraqi currency is in free fall since UN sanctions were imposed after the invasion of Kuwait in August 1990. Sanctions were renewed last week by the UN Security Council which said Iraq had still failed to comply with UN resolutions ending the 1991 Gulf War, which include requiring it to dismantle its weapons of mass destruction. The rates for train and bus trips between different provinces in Iraq were also increased by more than 50 percent this week. The ministry of agriculture meanwhile raised the price of a liter of milk to from 200 dinars to 600 dinars. To try to cut costs the government recently sold a quarter of the government-owned cars as well as kitchen appliances belonging to the ministry of commerce for 10 percent less than the market rate. AFP /AA1234/110931 GMT JAN 96
  -   World News