IRAQ: OIL DEAL RUMOURS SURROUNDING UNITED NATIONS AND IRAQ LEAD TO FALL IN MARKET PRICES FOR BAGHDAD SHOPPERS

Record ID: 337809

  • Title: IRAQ: OIL DEAL RUMOURS SURROUNDING UNITED NATIONS AND IRAQ LEAD TO FALL IN MARKET PRICES FOR BAGHDAD SHOPPERS
  • Date: 25th January 1996
  • Summary: BAGHDAD, IRAQ (JANUARY 25, 1996) (RTV (W) - ACCESS ALL) 1. GV STREET SCENES IN BAGHDAD'S AL-SHOURJAH AREA 0.05 2. GV CROWDED MARKET/ VARIOUS OF SHOPPERS AND MARKET TRADERS (4 SHOTS) 0.22 3. GV/SV SACKS OF FLOWER/FLOUR RE-PACKED FOR SALE(5 SHOTS) 0.45 4. GV/SV/VARIOUS OF MARKET STALLS SELLING EGGS AND OTHER FOOD STUFFS (4 SHOTS) 0.51 5. SV MONEY TRADERS 0.58 6. GV MARKET TRADERS 1.10 7. SV PEOPLE CARRYING FOOD STUFFS PURCHASED 1.15 8. GV TEA STALL 1.17 9. SV RICE STALL, PEOPLE SMILING AND CHEERING 1.25 10. GV WIDE VIEW OF MARKET 1.30 11. SV OLD MAN WITH CHILD 1.35 12. GV SACKS OF RICE 1.40 Initials Script is copyright Reuters Limited. All rights reserved.
  • Embargoed: 9th February 1996 12:00
  • Keywords:
  • Location: BAGHDAD, IRAQ
  • City:
  • Country: Iraq
  • Reuters ID: LVA3T430WCQVW290QZKGXK46LF8P
  • Story Text: Rumours of an imminent oil deal with the United Nations delighted Baghdad shoppers on Thursday (January 25) as prices fell sharply in the Iraqi capital.

    They began to fall last week with rumours that Iraq, which has been under U.N. sanctions since its 1990 invasion of Kuwait, may agree a deal enabling Baghdad to sell limited amounts of oil to pay for urgent humanitarian needs.

    Rumours of the deal have boosted the value of the Iraqi dinar against the dollar, making dollar-denominated imports cheaper to buy.

    The United States dollar was quoted on Thursday at less than 1,000 dinars compared to 3,000 just last week.

    Prices of some foodstuffs have fallen by as much as 70 percent on a week ago. The cost of a tray of 30 eggs, for example, had dropped to 2,000 dinars (now two U.S. dollars) from 6,000 dinars (six U.S. dollars) while a kg of sugar cost 500 dinars (50 U.S.

    cents) compared to 1,700 (1.70 U.S. dollars) earlier.

    The slump in food prices has spread to other goods, with shopkeepers reporting similar reductions for electrical appliances and cars, as well as spare parts and tyres.

    Baghdad has agreed to discuss with the United Nations the deal it had previously rejected on the grounds that its conditions infringed Iraq's sovereignty. No date has been set for the talks.

    Five years of sanctions has brought hardship to many Iraqis.

    The sanctions can continue until the United Nations is satisfied Iraq has destroyed its weapons of mass destruction.


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