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In Iraq s Dire Economy, Poverty Is Rising — And So Are Fears Of Instability

Alice Fordham/NPR toggle caption Alice Fordham/NPR Now, because of the rise of the dollar and the pensions people aren t receiving, there are two classes of people, says Saad Salman, the owner of a Baghdad sweet shop. A poor class and a rich class. Alice Fordham/NPR With the gold domes of the famed Kadhimiya shrine as a backdrop, nearby streets full of shops, markets and tea-sellers in Baghdad look bustling and vibrant, even at night. Tempting windows display sparkly clothes and cascades of candy in rainbow colors. But shopkeepers say no one has been buying much since Iraq devalued its dinar against the dollar last year.

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