International Monetary Fund
Iraq: Letter of Intent
Memorandum of Economic and Financial
Policies, and Technical Memorandum of Understanding
February 23, 2007
http://www.imf.org/External/NP/LOI/2007/irq/022307.pdf
5. We have tightened our exchange rate and monetary policies to fight inflation. The
exchange rate of the Iraqi dinar was pegged to the U.S. dollar through most of the year at a
rate close to ID 1,477 per U.S. dollar. From mid-November this policy has been adjusted to
permit a gradual appreciation of the dinar; the daily auction-rate declined to ID 1,325 per
U.S. dollar at end-December and reached ID 1,290 per U.S. dollar by end-January. Net international reserves continued to grow and reached a level of $15.3 billion at end-
November 2006. The CBI also raised its policy interest rate to 16 percent on November 12,
2006, and further to 20 percent as of January 7, 2007.