Newbie Question that I can't find an answer to....

[mariodi]

I am pretty new to currency investing and cannot figure out, in my mind, how the revaluation can possibly go to $3 US per $1 Dinar. If all of sudden, Iraq pegs this rate to the dollar, isn't the country just creating instant millionaires among their own citizens? If I am correct, it takes about 250,000 dinars to buy a loaf of bread, and I don't know what the average income is in Iraq, but I would assume that normal Iraqi citizens are holding millions of dollars for every day goods. All of a sudden the Dinar gets pegged to the US dollar and now we all citizens holding millions of US dollars also. How can this be? Wouldn't this cause an imbalance in economies?

A second question I had, is how is it possible for Iraq "cash us out" with so many people holding trillions of dollars of dinars? Iraq does not have trillions of dollars to give to foreign investors wanting cash in their dinars as soon as revaluation happens. It just not possible for Iraq to hold that much in US dollars.

I might be thinking of this wrong, but I cannot wrap this around my head at this time of how it's possible for Iraq to supply all that cash in US dollars for investors turning in their Dinars.

Thanks for your thoughts ahead of time.