Breitling: How can Iraq de-dollarize it’s economy without raising the value of the dinar. Well, they can’t. The velocity is part of the formula.
So, if they de-dollarize, it’s going to force Iraq to use the dinar & it’s got to go up. The value has got to go up. It has to be a combination. They have to de-dollarize and raise the value of the dinar at the same time.
Their value of the dinar right now is fake. A recent article said that their reserves went from 65 billion to 110 billion, so they could add value to it today. They are trying to put steps in place so their wealth doesn’t leave their country. The key for us is timing.
There is a 2 year process for them to get the dinar to a buck and from a buck they will go back to their original rate of $3.22.