The impact on the Dominican economy of the August 2007 hurricane was severe. Damage to housing and infrastructure, and loss of export earnings is estimated at 20 percent of GDP. • The authorities have made a request for a purchase under the Fund's policy on emergency assistance for natural disasters along with a subsidy on the rate of charge of such purchase (see letter of intent dated January 17, 2008). • The last Article IV consultation was concluded by the Executive Board on July 16, 2007.

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... that time, Directors commended the authorities for their continued commitment to sound policies which were instrumental in the remarkable recovery of the economy. They supported the government's medium-term fiscal targets, and welcomed the recent surge in budgetary aid, but highlighted the associated policy challenges. Directors supported the authorities' commitment to structural reforms in the financial sector and pension system, but called for implementation of further structural reforms to foster private sector-led growth. • Dominica has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions. The currency is the Eastern Caribbean dollar of the Eastern Caribbean Currency Union, which has been pegged to the U.S. dollar since 1976.