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Gold/Mining/Energy : Trico Marine Services (TMAR)
TMAR 22.420.0%9:47 AM EST
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To: D.J.Smyth who wrote (724)8/25/1998 10:01:00 AM
From: JZGalt   of 1153
 
Darrell, a significant portion of the Russian economy is done in dollars. One of the reasons for changing the face of the $100 bill was the amount of currency floating overseas in countries where their own currency is suspect.

I think you might be missing the point in what I was saying. Since oil is denominated in dollars and your friends point out they will only accept dollars, what do they do with that money? Some of it is spent on western equipment and services, but some is also spent on paying workers, etc. Those costs are in roubles. Now if the cost of your workforce were cut in half, couldn't you accept a lower dollar amount for the oil you produce? Understand?

As far as the construction business goes, I was not talking about the oil field sort of construction (perhpas you were). I am talking about buildings and other construction which is supported by the native currency. Buildings to support an export business denominated in a strong currency will continue. Consequently you might see construction in the former Soviet republics bordering Iraq and Iran and around Baku benefit from the expansion of the oil industry by foreigners, but the majority of Russia as a whole will suffer without foreign capital that cannot be hedged against the currency. The recent moves to propose a moratorium on removal of capital from the country will only heighten fears. Dumb. 180 degrees off.
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