The only reason they have the imposed rate on their currency is not sanctions put on by the IMF…it is sanctions put on them by the UN under Chapter 7. The IMF is helping them get back on their feet as they transition into a market driven economy along with the rest of the world and that is the process that we have been watching. Once the UN removes Chapter 7 that means they also remove the sanctions that were imposed from Chapter 7 and that releases Iraq to reinstate/revalue their currency.
They will be working with the IMF to be prepped for that because there is a monetary reform process and an economic reform process…the revaluation of their currency is part of the monetary reform…this will kick start the economic reform…that is the trigger mechanism, IOO. But they have other things they have to do for the economic reform to be successful…because if you don’t have a sound economic environment this level of monetary reform is going to be difficult to support the valuation. Iraq has taken the position that they want their monetary reform to be successful and therefore their economic reform has to be successful as well.
