Iraq’s currency revaluation is the first domino because Iraq’s gold reserves approximately 132.7 tonnes, accumulated through years of oil-for-gold arrangements with the World Gold Council and bilateral agreements provide the sufficient backing ratio for a revalued dinar at a rate that forces regional repricing. When the Iraqi dinar revalues, every currency in the region the Kuwaiti dinar, the Saudi riyal, the Jordanian dinar, the Turkish lira must reprice against it. That regional cascade triggers a global gold repricing as central banks across the world adjust their reserve compositions. The U.S. Treasury, through the ESF [Exchange Stabilization Fund], is positioned to execute the dollar’s own repricing in the immediate aftermath of the regional cascade. Iraq is not the end game. Iraq is the match. The powder is everywhere. :Ariel
