Administrator’s Weekly Report Economy — establish Baghdad Stock Exchange; Restructure National Debt — 14 أيار 2004 Arabic

Administrator’s Weekly Report Economy May 8 -May 14, 2004 HIGHLIGHTS -- Combined Joint Task Force Seven (CJTF-7) Civil Affairs units estimate that the CPA has created 423,639 jobs for Iraqi citizens (50 percent of the CJTF-7 target of 850,000). I. BUILD FINANCIAL MARKET STRUCTURES Modernize the Central Bank; Commercial Banking System; Re-establish Baghdad Stock Exchange; Restructure National Debt At the New Iraqi Dinar (NID) auction on May 13, the settlement price was 1,460 dinars per dollar, the same as the previous day, and unchanged for a week ago. The amount of dollars sold at the auction varied over the week from $8.8 - $17.6 million. New Iraqi Dinar monthly fluctuation: February 13 – March 13: NID appreciated 0.4 percent March 13 – April 13: NID depreciated 2.1 percent April 13 – May 13: NID depreciated 1.0 percent Source: CPA Senior Advisor to the Central Bank of Iraq The annualized weekly volatility of the New Iraqi Dinar this past week was 1.21 percent. II. DEVELOP TRANSPARENT BUDGETING AND ACCOUNTING ARRANGEMENTS Redrafting and Execution of 2004 Budget As of May 13, the balance in the Development Fund for Iraq (DFI) was $11.2 billion, comprised of $10.1 billion in the original Federal Reserve Bank of New York (FRBNY) account, and $1.1 billion on deposit in DFI-Baghdad. Of this, $4.5 billion is already committed to projects, and the remaining $6.7 billion is slated for projected 2004 budget items. Since establishment, the DFI investment program at FRBNY earned $24.6 million in interest. As of May 13, the total payments out of the DFI amounted to $8.0 billion. The Program Management Office (PMO) intends to commit $10.4 billion (56 percent of the $18.4 billion supplemental) toward contracts by July 1, 2004. As of May 11, $7.1 billion are committed to Iraq relief and reconstruction efforts, 68 percent of the July 1 goal. As of May 11, $3.7 billion of funds are obligated with contractors (35 percent of the committed fund’s goal). The following shows the money committed by sector as of May 11 against the July 1 target. Source: Program Management Office Section 2207 of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, FY 2004 (Public Law 108-106) enumerates the allotments granted to CPA for each sector and levies a quarterly reporting requirement to Congress detailing PMO’s spending. IV. LAY FOUNDATIONS FOR AN OPEN ECONOMY Provide IG Staff Capability; Trade Bank; WTO Observer Status; Develop Framework for Collateralizing Movable and Immovable Property Since opening in December 2003, the Trade Bank of Iraq has opened 203 letters of credit totaling $788.8 million, financing imports from thirty-two countries. Included is one letter of credit guaranteed by the Export-Import Bank of the United States for $6.9 million, nineteen letters of credit for $26.2 million pending issuance, and twenty-three letters of credit to be funded with Oil For Food funds pending issuance V. PURSUE NATIONAL STRATEGY FOR HUMAN RESOURCES DEVELOPMENT Begin to employ workers in Public Works programs around the country Ongoing security problems are still creating gaps in employment reporting, however figures for this week show an increase in Security / National Defense and a big jump in jobs from PMO contracts. Combined Joint Task Force Seven (CJTF-7) Civil Affairs units estimate that the CPA has created 423,639 jobs for Iraqi citizens (50 percent of the CJTF-7 target of 850,000): Security/national defense employs 237,696 National / regional jobs programs employ 44,031 CJTF-7 employs 54,738 Civilian contractors employ 85,624 (including 24,179 from PMO-related work) Governorate teams employ 1,550 PAGE PAGE 4 FOUO Prepared by the Information Management Unit PAGE 1 FOUO Prepared by the Information Management Unit