Iraqi Swiss dinar
From Wikipedia, the free encyclopedia
| Iraqi Swiss dinar | |||
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| ISO 4217 Code | IQD | ||
|---|---|---|---|
| User(s) | Iraq under Saddam | ||
| Banknotes | dinars | ||
| Central bank | Central Bank of Iraq | ||
Swiss dinar is a term used to describe the Iraqi currency printed in Switzerland prior to the 1990 Gulf War with the United States. After the war, subject to economic sanctions authorised by United Nations resolutions, continued importing of the Swiss made currency was prohibited, and the Central Bank of Iraq began domestic printing of a new Iraqi dinar.
After a change-over period, the Iraqi government disendorsed the old currency and it ceased to be legal tender. However, the old currency still circulated in the politically isolated Kurdish regions of Iraq until it was replaced more than a decade later following the 2003 invasion of Iraq. During this inter-war period the Swiss dinar retained its market value, while the new replacement Iraqi currency consistently lost value (sometimes at 30% per annum).
During this period the Swiss dinar was endorsed by no central authority or government (in fact it was a disendorsed currency) and was not redeemable by any issuing agent, or backed by any commodity. Its persistent and sustained market value derived purely from its utility as a culturally accepted medium of exchange. As such it is often cited in economic discussions about money and the origin of money's value.
Following the 2003 invasion, Coalition Provisional Authority installed by the United States created another new currency, making the post-1991 Iraqi-dinar, and the Swiss dinar redeemable for exchange.
[edit] References
- Budget and Finance (2003). Iraq Currency Exchange. The Coalition Provisional Authority. Retrieved on 2008-03-19.
- Hal R. Varian. "Why Is That Dollar Bill in Your Pocket Worth Anything?", The New York Times, 15 January 2004. Retrieved on 2008-03-19.
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