Iraqi Dinar Discussion Board

[Aerospace]

The success in bringing down inflation has allowed us to slow down the pace of appreciation of the dinar from roughly ½ percent per month in the second half of 2007 toabout ¼ percent per month in the period January–June 2008. Since November 2006 the dinar has appreciated by 18¾ percent vis-à-vis the U.S. dollar, to ID 1,195 per dollar at end- June 2008. Net international reserves continued to grow and reached a level of $38.3 billion at end-April. The Central Bank of Iraq (CBI) also reduced its policy interest rate in three steps from 20 percent at end-2007 to 16 percent as of July 1, 2008.