RV

[teach]

I am posting here because most of what I have been trying to wrap my head around is addressed in this section. It is my understanding that certain things like the government being seated must be in place. Makes sense because decisions will have to be made. Once that occurs and it appears it may have or is almost complete, they will want to revalue their currency to give more buying power to their people. (Am I getting this?) But what would it be based on since they are a devastated country? Oil sales of course. It seems that just owning something doesn't mean anything unless you sell it to provide the backing for what you believe your currency is worth. So wouldn't they have to actually start exporting and bringing revenue in to substantiate any value of their currency? If so, isn't that the big thing to see actually take place before it can RV?

[imdamanz]

To the extent that oil is their main export, that is true. The only part of your post that needs further explaination is the flowing of the oil. As a commodity, it is traded in "futures". What that means is someone agrees to by a certain amount to be delivered in the future, usually 6 to 12 months, but pays for the contract in advance. Iraq does not have to be sending ships out of their ports full of oil in order to generate revenue.

[jola]

Yes, I believe the Oil Law has to be passed and enacted before we see anything ( of course, that on top of all the other stuff they need to get done). They said they will take care of that after the vote on the Strategic Council Law - next week - or something like that.

[GreginTexas]

Do not forget all the oil sold and shipped from 2003 until today. I if remember correct it is estimated at 1.5 million barrels per day. 70 % of the money was kept in a fund for Iraq and now they will have access to it.

[teach]

Thanks you guys!