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