Standard prices of goods in Iraq today (formerly "new bread thread")

[joec]

Would someone currently living or serving in Iraq be inclined to let us in on the costs of items like the following:

*Loaf of bread

*Pack of cigarettes

*Gallon of gas

*Any random other small things

Also, are people paying in dinars or dollars?

We can all find articles from many different time frames that state many different prices for many different items (whew....haha)...but how about someone actually stepping on the soil as they type filling us in?

:wave:

[Kuna]

JoeC, this is similar to the information that I wanted to try to get. I look forward to seeing the replies.

[AF Sergeant]

Ok, this information is going to really hurt, so be forewarned!


When an Iraqi pulls up to a gas station, compliments the American taxpayer, they will be the large sum of 1 red nickel each liter. The average size car will need less than $1 to fill the tank.

Do they pay in USD or IQD? Most Iraqi's I've talked to (please don't take this as a scientific poll) prefer to pay for things in USD. It's easier to carry larger amounts and widely accepted.

[joec]

Very interesting! Thank you! So a tank of gas is roughly 1,460 dinars at present. Lucky folks over there...haha!

[wilsonm24]

You have to be careful when comparing certain things from this region of the world (specifically where I am in Bahrain)to things in the US. A comparison:

1 pack of Marlboro lights only costs $1.50 on the local economy. Still $4.00+ on base
1 gallon of gas is only $1.00
1 case of heineken aprox $56.00 on the local economy. aprox $20.00 on base

The taxes on alot of these things are what drive the price up in the US and the taxes just aren't the same here. Also most of the middle eastern countries have a barter type of economy. This means that pretty much anything you go out to buy is up for barter. You can pay anywhere from $50-200 for the same necklace from the same person depending on how much you barter (nationality also matters they tend to charge americans more because we "have more money").

Granted this is all in a much more settled and less conflict country. But their money is exceptionally stable (has not moved from $2.66 per 1 Bahraini Dinar since I have been here since 99).

[AF Sergeant]

Here is what the average Iraqi is paying for ordinary items in the northern portion of the country:

Milk - 1000 Dinar for 1/2kg (about 17 ounces). Fresh milk is hard to get, so everything is powdered

Bread - 50-250 Dinar

Meat (not good steaks) - 4,000 to 6,000 Dinar a pound

Rent - Middle class home 100,000 to 200,000 Dinar a month

Electricity - 2,000 to 3,000 Dinar a month

Cars - New vehicles are impossible to get still, but a mid 90's car in good condition will run $3,000 to $5,000 Dollars

Salaries - (they are going up quickly)
entry level - 150,000 to 200,000 Dinars a month
experienced - 300,000 a month
professionals - 500,000 a month

Taxes are not being collected yet, no agency exists to collect them.

Hope this helps with some of the questions, feel free to ask me more.

[Sindino]

If what AF Sgt. has posted with regards to salaries is correct, then I will again reiterate a previous post with regards to dinar value.
Based on his info, it would seem that if the dinar went to dollar that almost every single person in the country from beginner to professional would be millionaires on a yearly salary alone. Does this make sense?
What will happen when people start to have to pay taxes? They will want raises to cover the decrease in buying power. So then what , even street sweepers will have salaries of $2-3 million dollars in buying power as a salary?
I'm not knocking this investment but these are concerns I have had. I have a bunch of dinars myself. But realistically I don't think we will ever see $3 for a dinar and not even $1. But hey I'll take even a penny, I hope for .10 and would ecstatic with .30.
One last thing, even if it opens high, the market will determine its ultimate value and at this stage I don't see more than a penny (if we are lucky)
Anyway, just my commentary on how people should look at the overall picture and adjust expectations accordingly.

[joec]

If what AF Sgt. has posted with regards to salaries is correct, then I will again reiterate a previous post with regards to dinar value.
Based on his info, it would seem that if the dinar went to dollar that almost every single person in the country from beginner to professional would be millionaires on a yearly salary alone. Does this make sense?
What will happen when people start to have to pay taxes? They will want raises to cover the decrease in buying power. So then what , even street sweepers will have salaries of $2-3 million dollars in buying power as a salary?
I'm not knocking this investment but these are concerns I have had. I have a bunch of dinars myself. But realistically I don't think we will ever see $3 for a dinar and not even $1. But hey I'll take even a penny, I hope for .10 and would ecstatic with .30.
One last thing, even if it opens high, the market will determine its ultimate value and at this stage I don't see more than a penny (if we are lucky)
Anyway, just my commentary on how people should look at the overall picture and adjust expectations accordingly.

The same goes for me. I don't see how if someone is making 250,000 dinars per month we can expect the rate to hit even $0.31! That would be like $8,000 U.S. per month for the lowest of low jobs! Not even janitors in the U.S. make $96,000 per year!

[Blake]

The same goes for me. I don't see how if someone is making 250,000 dinars per month we can expect the rate to hit even $0.31! That would be like $8,000 U.S. per month for the lowest of low jobs! Not even janitors in the U.S. make $96,000 per year!Salaries would be adjusted, as would price of goods. Given the frequent use of the U.S. dollar over there, dinar salaries are not written in stone.

I'm not sold on the belief that it will open at $.31 either, but the point about salaries is not a compelling argument against it, IMO.

[Sindino]

Don't quite agree Blake. If they adjust salaries that would mean they are either devaluing the dinar(which hurts dinar holders ) or they could cut salaries(realistically who would sit still for that). Also like I said once the Iraqis are taxed they will want even more money for salaries.
I just think this common sense look at the economic factors will limit any big jump in value. I'll stick to my original .01-.10 in a year or two and hopefully .30 3-5 yrs out.(again even at .30,think about it, even common laborers would be looking at $30,000 monthly income. )Unfortunately, the more I look at all these factors the more I think while some money will be made down the road, it won't be anywhere near what people think it will be.
Hey I could be wrong(wouldn't mind if I am)

[wilsonm24]

Don't quite agree Blake. If they adjust salaries that would mean they are either devaluing the dinar(which hurts dinar holders ) or they could cut salaries(realistically who would sit still for that). Also like I said once the Iraqis are taxed they will want even more money for salaries.
I just think this common sense look at the economic factors will limit any big jump in value. I'll stick to my original .01-.10 in a year or two and hopefully .30 3-5 yrs out.(again even at .30,think about it, even common laborers would be looking at $30,000 monthly income. )Unfortunately, the more I look at all these factors the more I think while some money will be made down the road, it won't be anywhere near what people think it will be.
Hey I could be wrong(wouldn't mind if I am)


I don't think the iraqi people would actually mind to much if their pay was adjusted to match the rate of the dinar. As long as they can still get what they need from the store and afford to live then their pay isn't actually being cut. It is being adjusted to match the economy.

Plus if they are smart they are saving as much of thier pay in dinar as they can and the jump in dinar rate willl benifit them as much if not more than it will us.

[Blake]

Don't quite agree Blake. If they adjust salaries that would mean they are either devaluing the dinar(which hurts dinar holders ) or they could cut salaries(realistically who would sit still for that). Also like I said once the Iraqis are taxed they will want even more money for salaries.Any thoughts on how the adjustment was handled in Kuwait when their currency appreciated "overnight"?? I say this realizing fully Iraq is not the same situation, but only for the point you mentioned.

[AK Boy]

Another interesting article...

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2004/August/business_August197.xml&section=business&col=

Kind of scary numbers!

[Sindino]

Blake, to tell the truth I don't know how adjustment was handled. But I also think in Kuwait most work is done by imported help, so maybe they could just arbitrarily cut/adjust pay etc. since that only affected mostly immigrants. In Iraq, everyone needs and seems to want a job to get ahead, so adjusting their salary would be an iffy proposition. Also while imported goods would drop a little in price, the middlemen would not pass on all the savings (they never do) plus housing costs I doubt would go down to either rent or buy(how often does that happen) Like I said, I don't know but every time I think of a street sweeper making the equivalent of a million a year let alone what the professionals would make I just don't think it will go as high as everyone hopes. One last time(I hope I'm wrong)but.....

[krachon]

If the posted salaries are correct, it is by far the worst news I've heard. :confused: