2-26-11 UN prepares comprehensive Briefing Book on Iraq

Highlights/Thoughts
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1. The UN prepared a briefing book, which was created by international partners for the purpose of informing forthcoming discussions between Iraqi authorities and international partners on key areas of mutual interest
2. There are 2 parts:

• Part I addresses key policy issues, including: macroeconomic challenges; development planning and prioritization; governance and public sector reform; anti-corruption; private sector development; social protection; and the challenges of regional cooperation and internal disputed territories.
• Part II focuses on sectoral and cross-cutting issues, including: human rights protection, civil society and the media; gender mainstreaming; basic social services; water resources management; agriculture; environment; energy; transport and telecommunications; and cultural heritage.

3. An except from the Economic Development Challenges Recommendation section is below.

RECOMMENDATIONS
Continue to adhere to a sound monetary and exchange-rate policy framework. To preserve
hard-won gains in disinflation and de-dollarization, an appropriate monetary and exchange-rate
policy framework needs to be set in place. In that regard, maintaining a healthy level of
international reserves is crucial in preserving the stability of the Iraqi dinar, and in avoiding the
resurgence of currency substitution and inflation with accompanying socioeconomic effects,
particularly on the poor. To address this, monetary authorities should continue to carefully
monitor the emergence of possible inflationary pressures in the economy.

Isn't that interesting?  "To preserve had-won gains in disinflation and de-dollarization, an appropriate monetary and exchange rate framework needs to be set in place".  Please note there are many tools that can be used to support a country's monetary policy.   One such tool is exchange rates.  So, this recommendation is for Iraq to use exchange rates to support their monetary policy in order to preserve the gains in disinflation and de-dollarization (removal of US dollars).   The words "to be set in place" are also important because they tell us they obviously haven't yet put this exchange rate framework in place.  Now what could this all mean?  RV?