Libra and Inflation

The white paper mentions that Libra will be stable and have lower inflation. I’m a little confused, so here’s a scenario.

I get $100 worth of Libra, I wait a year, and I cash it in for USD. How much should I expect to get back?

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The white paper suggests that libra will be a stable coin backed by a reserve in USD, Euro, Pounds and Swiss franc. I would reason that the exchange rate may most likely depend on the distribution of the reserve currencies i.e. If 60% of the reserve is in Euro and 40% is in Pounds at the present exchange rate the value of libra in USD would be greater than 1 ( you can determine the exact value by performing the suggested calculation). If the reserve currencies see a growth your libra value may increase. The inflation in reserve currency will most likely (ideally) reflect in the value of libra. The exact dimensions of exchange value would definitely depend on a lot more than the exchange rate. To best answer your question, I assume the ideal situation where the inflation in your fiat currency (USD) is reflected in reserve currencies, you should expect a return of around $100.

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