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Iraq’s in a pickle, if they stop or reduce the auctions, the dinar will drop to 1400 – 1 or so like it did earlier this year.

If they don’t, the reserves will continue to erode.

Without the dinar in in Article VIII, they can’t buy the imports they need and they can’t, according to the IMF, get into Article VIII until they’ve held the spread to 2% for 90 days.

Something’s got to give at some point.