The Swiss dinar () was the Iraqi currency in circulation prior to the 1990 Gulf War.
Name
While the reason for the adjective "Swiss" is unknown, two possible explanations have been offered.
It has been claimed the printing plates for the currency came from Switzerland, although the notes were actually produced in the United Kingdom by De La Rue. While this claim is widespread, the actual origins of the plates are unknown as no sources close to De La Rue or the Central Bank of Iraq have made any comment on the matter.
The second possible explanation is that prior to the Gulf War, Iraq was historically a low inflation country, similar to Switzerland.
History
Inter-war period
After the Gulf War, the Iraqi government disendorsed the old currency, favoring newly printed Saddam dinars, and the Swiss dinar ceased to be legal tender. However, the old currency still circulated in the politically isolated Kurdistan region of Iraq. The government of the Kurdistan region did not have the printing plates of the Swiss dinar, but it also refused to accept lower-quality Saddam dinar banknotes (which were issued in huge amounts). Since the supply of Saddam dinar banknotes increased while the supply of Swiss dinar banknotes remained stable (even decreased because of notes taken out of circulation), the Swiss dinar appreciated against the Saddam dinar. By having its own stable currency, the Kurdistan Region of Iraq effectively evaded inflation, which ran rampant throughout the rest of the country.