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:
 March 13 – April 13:
 April 13 – May 13:
1800
NID appreciated
NID depreciated
NID depreciated
0.4 percent
2.1 percent
1.0 percent
Exchange Rate Movements
1600
1400
1200
12
/3
1/
2
1/ 003
7/
1/ 200
14 4
/
1/ 20 0
21 4
/
1/ 20 0
28 4
/2
2/ 0 04
4/
2/ 200
11 4
/
2/ 20 0
18 4
/
2/ 20 0
25 4
/2
3/ 0 04
3/
3/ 200
10 4
/
3/ 20 0
17 4
/
3/ 20 0
24 4
/
3/ 20 0
31 4
/2
4/ 0 04
7/
4/ 200
14 4
/
4/ 20 0
21 4
/
4/ 20 0
28 4
/2
5/ 0 04
5/
5/ 200
12 4
/2
00
4
New Iraqi Dinars (NID) per US $1

Street Market Price
Settlement Price (Auction)
1
FOUO
Prepared by the Information Management Unit
Source: CPA Senior Advisor to the Central Bank of Iraq
Annualized Weekly Volatility of the NID
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
5/
13
/0
4
5/
6/
04
4/
29
/0
4
4/
22
/0
4
4/
15
/0
4
4/
8/
04
4/
1/
04
3/
25
/0
4
3/
18
/0
4
3/
11
/0
4
3/
4/
04
2/
26
/0
4
2/
19
/0
4
0.00%
Settlement Price NID Volatility

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.
FOUO
Prepared by the Information Management Unit
2
PMO: Supplemental Money Committed by July 1
6000
5000
Millions of Dollars
4000
3000
2000
1000
0

Oil
Electricity
Security
Water
Transport/
Telecom
ED &
Human
Rights
Roads/
Bridges
Private
Sector
Justice &
Public
Safety
2207 Report
1701
5539
3243
4148
500
259
370
184
1038
793
451
July 1 Target
1701
2079
3057
861
601
618
4
131
540
325
458
Updated Apportionment April 21
1701
2538
2976
816
467
259
270
136
825
512
451
Total Committed May 11
1447
1837
1949
490
221
37
213
54
354
214
326
Health Care Democracy
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
FOUO
Prepared by the Information Management Unit
3
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
National / regional jobs programs employ
CJTF-7 employs
Civilian contractors employ
(including 24,179 from PMO-related work)
Governorate teams employ
FOUO
Prepared by the Information Management Unit
237,696
44,031
54,738
85,624
1,550
4