Administrator’s Weekly Report
Economy
April 24-April 30, 2004
HIGHLIGHTS

As of April 25, 2004, estimated crude oil export revenue reached $5.1 billion for 2004 (crude
oil export revenue for 2003 [June - December] was $5.1 billion).
I. BUILD FINANCIAL MARKET STRUCTURES
Modernize the Central Bank; Commercial Banking System; Re-establish Baghdad Stock
Exchange; Restructure National Debt

Training for employees of the Iraq Stock Exchange has begun in earnest, with the recent
arrival of Bearing Point technical experts. All equipment has been installed in the new site,
and renovations are nearly complete. Outfitting the site for security is also nearing
completion. CPA staff has hired a prominent Arab accounting firm to manage all of the
Exchange's financial records.

Ernst & Young was selected in late February to provide services related to the reconciliation
of Iraq’s sovereign debt. Their team arrived in Baghdad and commenced work this week.

At the Central Bank of Iraq auction for the New Iraqi Dinar (NID) on April 29, the settlement
price was 1,440 dinars per dollar, the same as the previous day, but up 1.03 percent from a
week ago. The amount of dollars sold at the auction varied over the week from $14.0 - $22.2
million.

New Iraqi Dinar monthly fluctuation:
 January 29 – February 29:
 February 29 – March 29:
 March 29 – April 29:
NID depreciated 4.1 percent
No change
NID appreciated 1.3 percent
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1800
1600
1400
Saddam Rate (250 per $)
Street Market Price
4/29/2004
4/22/2004
4/15/2004
4/8/2004
4/1/2004
3/25/2004
3/18/2004
3/11/2004
3/4/2004
2/26/2004
2/19/2004
2/12/2004
2/5/2004
1/29/2004
1/22/2004
1/15/2004
1/8/2004
1/1/2004
1200
12/25/2003
New Iraqi Dinars (NID) per US $1
Exchange Rate Movements
2000
Old Saddam Rate (10K per $)
Settlement Price (Auction)
Source: CPA Senior Advisor to the Central Bank of Iraq
Annualized Weekly Volatility of the NID
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
2/
14
/2
00
4
2/
21
/2
00
4
2/
28
/2
00
4
3/
6/
20
04
3/
13
/2
00
4
3/
20
/2
00
4
3/
27
/2
00
4
4/
3/
20
04
4/
10
/2
00
4
4/
17
/2
00
4
4/
24
/2
00
4
2/
7/
20
04
0.00%
Settlement Price NID Volatility

Street Market Price NID Volatility
The annualized weekly volatility of the New Iraqi Dinar this past week was 1.00 percent.
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II. DEVELOP TRANSPARENT BUDGETING AND ACCOUNTING ARRANGEMENTS
Redrafting and Execution of 2004 Budget

As of April 30, the balance in the Development Fund for Iraq (DFI) was $10.4 billion,
comprised of $9.3 billion in the original Federal Reserve Bank of New York (FRBNY)
account, and $1.1 billion on deposit in DFI-Baghdad. Of this, $2.9 billion is already
committed to projects, and the remaining $7.5 billion is slated for projected 2004 budget
items. Since establishment, the DFI investment program at FRBNY earned $23 million in
interest. As of April 30, the total payments out of the DFI amounted to $7.5 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 April 28, $6.5 billion are
committed to Iraq relief and reconstruction efforts, 63 percent of the July 1 goal. As of last
week, $2.69 billion of funds are obligated with contractors (26 percent of the committed
fund’s goal). The following shows the money committed by sector as of April 28 against the
July 1 target.
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 April 28
1366
1824
1576
510
219
37
211
54
350
31
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.
III. PRIVATE SECTOR INITIATIVES
Streamline Existing Commercial Codes/Regulations; Facilitate Lending to Private Businesses;
Technical Assistance for Small and Medium Enterprises (SMEs); Encourage Iraqi Participation
in Reconstruction Subcontracts; Facilitate Business Development
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
On April 29th, the PMO held a training seminar for Iraqi companies on how to successfully
compete for PMO contracts. Attended by approximately 100 business persons at the
Baghdad Convention Center, the seminar included a step by step approach on preparing bids
for the PMO and its prime contractors. The next seminar is scheduled for Thursday, May 6th
and will incorporate feedback from this first pilot session.

Microfinance assets nation-wide now total almost $4 million, with over 2,000 clients. These
loans aim to stimulate growth in the private sector and create employment by providing
credit services to financially viable micro and small businesses.
IV. DESIGN OIL TRUST FUND
Proposal for Oil Trust Fund

As of April 25, 2004, estimated crude oil export revenue reached $5.1 billion for 2004 (crude
oil export revenue for 2003 [June - December] was $5.1 billion).
V. LAY FOUNDATIONS FOR AN OPEN ECONOMY
Provide IG Staff Capability; Trade Bank; WTO Observer Status; Draft Intellectual Property law
to IGC by April 15, 2004; Develop Framework for Collateralizing Movable and Immovable
Property

Since opening in December, the Trade Bank of Iraq has issued 200 letters of credit totaling
US$767.5 million in imports from thirty-two countries. These numbers include 30 letters of
credit totaling US$ 123.4 million pending issuance and 21 letters of credit totaling $37.6
million under the oil for food program.

CPA Administrator L. Paul Bremer III signed CPA Order 80, the Trademark and
Geographical Indications Law. The order revises and amends the existing Iraqi Trademark
and Descriptions Law (renaming it the Trademark and Geographical Indications Law) to
provide for its modernization and increase protections for those individuals, companies,
lenders, and entrepreneurs who create and utilize trademarks, service marks, collective
marks, and certification marks in the course of their business affairs. The order brings the
current Iraqi Trademark and Geographic Indications Law into accordance with
internationally-recognized standards of protection.

Administrator Bremer signed CPA Order 81, the Patent, Industrial Design, Undisclosed
Information, Integrated Circuits and Plant Variety Law. This order brings current Iraqi
Patent and Industrial Design Law into accordance with internationally-recognized standards
of protection. The order increases protections for those individuals, companies, lenders, and
entrepreneurs who create innovative products, manufacturing processes, or solve specific
problems in a field.
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V. PURSUE NATIONAL STRATEGY FOR HUMAN RESOURCES DEVELOPMENT
Begin to employ workers in Public Works programs around the country
Ongoing security problems have reduced the reliability of data on Iraqi employment by CPA and
CJTF-7 this week. Where data is available, it indicates a small decline in the jobs identified as
created by CPA/CF. However, until the employment numbers are confirmed in official reports,
no new employment figures will be reported.
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