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Iraqi Swiss Dinar

Iraqi Swiss Dinar

Iraqi Swiss Dinar

Since the frenzy is all about the Iraqi Dinar IQD we though it would be a great idea to have a little look at the history of recent times, some of you will remember the Iraqi Swiss Dinar.

Prior to the 1990 Gulf War the Swiss Dinar was the Iraqi currency in circulation at the time of the 1990 war with the foreign coalition forces.

It’s an unusually unique scenario because they chose the word “Swiss” but there are indeed two possible explanations.

  • The printing plates for the currency came from Switzerland, although the notes were eventually printed in the United Kingdom. Even after the war, due to the economic sanctions that were authorized by the United Nations, they hit a dead end because importing of the Swiss notes became illegal. At which point the Central Bank of Iraq had no other choice but to begin in-house domestic printing of a new Iraqi Dinar.
  • The other scenario which is very possible is that prior to the Gulf War, 1990, Iraq had shown itself to be a traditionally low inflation country, similar to Switzerland.

The monetary situation was further complicated by an essentially separate currency in northern Iraq. The Kurdish area continued to use the banknotes that Iraq had used before the Gulf War, the Kurdish Government did not have access to the printing plates for the Swiss dinars—and because they refused to follow Saddam’s example and print low-quality notes of their own—the supply of Swiss dinars in the north had remained essentially fixed for 13 years.

The Kurdish area actually flourished because of the stance they took not to adopt the new Iraqi Dinar, inflation rates for the Swiss Iraqi Dinar remained low and fairly unaffected by the happenings in the rest of Iraq.

The coalition eventually settled on officially pegging the currency at 150 Saddam dinars per Swiss dinar.

Ultimately the goal was to unify the two currencies, and since Saddam was no longer in power, the aim was to take the two currencies and merge into one. One thing for sure they wanted to take the image of Saddam away from the ordinary Iraqi going about his day to day life.

Swiss Dinar Exchange

Reminds us of other currencies, an example being the Tunisian Dinar TND – the image below depicts that of the 10 Dinar Note which has an image of the Roman ruins of Sufetula, a real source of pride for they are among the very best preserved in the world. Then you see the image of the satellite, which is a constant reminder that under the reign on Ben Ali you were/are being watched.

Tunisan Dinar

It’s a real modern day version of subtle propaganda whereby just purchasing a newspaper and paying with your 10 TND note you are given a subtle reminder. For the majority it wouldn’t even become apparent but the subconscious mind works in wonderful ways.

So that’s the story, get Saddam of the note and remove as much of the reminders as possible, besides the currency itself was out of control and needed to be kept under control, a task the coalition was very much interested to see come to fruition.

The new Swiss currency was created in a different color to differentiate from the old currency and in fairness the exchange was pretty quick and without any real problems

Okay, now a question for you, knowing that the Coalition Forces pegged the currencies and did a straightforward exchange, and knowing that today the New Iraqi Dinar is out of control. Do you fear Iraq will decide to simply issue a new currency altogether?

After all the previous Saddam Currency represented him, is it possible that Iraq with its Shia fuelled agenda backed by Iran, what do you think is the possibility of Iraq deciding to cut ties with the current New Iraqi Dinar which was implemented at the direction of the Coalition Provisional Authority, remembering that the last 10 years have not exactly been a blessing. Could it be that the Shia Dominated government will take it out of circulation all together and go their own route?

It is very much a power struggle at the moment; is Iraq going to go with China, Russia and Iran or is she to stay with the Americans?

All the while the security situation is a mess we think it is prudent not to do anything with the currency, as ultimately future ongoing growth is dictated by economic activity at home and abroad. Record death tolls are increasing and many international companies are pulling out. If Iraq were to do something major with the currency it would ultimately be a flop meanwhile the socio situation is a mess.

You can’t have a prosperous currency whilst having a messed up country. If something is to happen, it certainly gives no impression of taking place any time soon, Iraq frankly speaking is a complete mess. Just yesterday according to the Iraq Body Count – 33 were killed Friday 20th December 2013.

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27 comments

  1. Far too many deaths, but maybe the Revaluation will sort that out?!

    • Once the RV is done, i don’t want to hear the word Iraq ever again.

    • Economics doesn’t work that way Ed, if so half of the countries would of rved along time ago. Great article BI, I’ve been trying to explain this on my posts lol. The one thing you didn’t say which I think is very important there are over 30 trillion dinars printed for a pop of 32 million and a gdp of 120 billion. When you add the fact of them in a horrible living situation how can anybody with higher than a 5th grade knowledge of economics think that it will revalue in 5 yrs let alone anytime soon. I do believe there is a battle behind the scenes trying to rid us of a debt based world but that has nothing to do with the Iraq Dinar. They are trying to rid the world of the slavery of putting people into debt by printing worthless paper that is backed by nothing to a world that gives people the rights to have food and shelter without spending your whole life doing something that you do not want to do just to be able survive. The Iraq Dinar will not make ANYBODY rich except for the dealers and the gurus who sell you that false dream.

  2. Greetings folks! All the way from Ireland. Merry Christmas to you all, let’s hope she sorts herself out sooner rather than later and puts some cash in our pockets.

  3. If Iraq knew what was best she would steer well clear of the Americans for they have been nothing but a disaster.

  4. Nice story, I still have some of them Iraqi swiss dinars, keeping them as a memento.

  5. So long as the country is fucked up there aint going to be an rv. #Period!

  6. Hey Baghdad Invest, i got some of them Tunisian Dinars too :-) A few years back before the president left for Saudi Arabia we were on holiday there. Nice place.

  7. I remember those notes hehe

  8. Not many mention this, but i agree the currency will never be attractive so long as there is fighting.

  9. the good old swiss iraqi dinar ;-) got myself a fair few of them.

  10. After the Gulf War in 1991, previously used Swiss printing technology was not available, resulting in new notes being of lesser quality. The previous versions of the Iraqi Dinar started being called Swiss Dinars.

  11. The new Iraqi Dinar was released on October 15, 2003. It replaced all “old” Dinar and “Swiss” Dinar banknotes, which as of January 15th 2004 were no longer legal tender.

  12. why they didnt just give them the printers?

  13. ENjoyed that read Baghdad Invest, thanks!

  14. I can confirm “The frenzy is most definitely about the iRAQI DINAR”!! For all the wrong reasons lol

  15. They should have just left them in and got rid of the sanctions and sorted out new machinery.

  16. Thanks BI – nice read but i wonder what would of happened if iraq kept the swiss dinar.

  17. 33 died in Iraq wow….,,13,567 died in the US of course that’s approx. from Goggle, but they seem a lot better off. Time to RV. And please I was beginning to like you guys, This is a totally uneducated question and is not even a little possible for a list of resons.

    • They are documented civilian deaths from violence. We would all say no – they will not issue a new currency because we do not allow such idea to enter our thought process because we are so damn focussed on making money out of this and if it did be a new currency all together then we would make very little if anything! Wake up dude, this is an investment not a marriage, some investments you win and some you lose. Such is life.

    • What is ideal for you may not be for an independent nation who let’s face it, has their own choice and to be completely honest with you, the options we offer are far less attractive than those of the emerging growth economies.

      Who wouldn’t go that way, it’s like saying well you are my best mate, so I will buy your house despite it having only 1 bedroom and i have 3 kids…. America et al offer very little where as China, Brazil, Russia and Iran offer a real club of growth.

    • we have to consider all options! Ignoring it makes you a terrible investor, try to detach your emotions from you investment decisions.

  18. DEAR SIRS/MADAM
    JUST I SEE THE IRAQI DINAR WITH THE PICTURE OF LATE PRESIDENT SADAM HUSSIEN I REMMBER THAT VERY GOOD MAN WHO BUILD THE STRONG ARMY WHICH
    USA AND ENGLAND AND OTHER WEST COUNTRIES ARE COME TO IRAQ FOR DISTROY THIS STRONG ARMY.
    I HOPE THAT IRAQ REBUILD THIS ARMY BECAUSE IRAQ ALL THE WEST COUNTRY
    UNDER THE USA FLAGE WANTS TO MAKE THE IRAQ COUNTRY STILL WEEK WITHOUT
    STRONG ARMY AS THEY DONE WITH GERMAN AFTER THE WORLD WARS.

  19. DEAR SIRS/MADAM
    JUST I SEE THE IRAQI DINAR WITH THE PICTURE OF LATE PRESIDENT SADAM HUSSIEN I REMMBER THAT VERY GOOD MAN WHO BUILD THE STRONG ARMY WHICH
    USA AND ENGLAND AND OTHER WEST COUNTRIES ARE COME TO IRAQ FOR DISTROY THIS STRONG ARMY.
    I HOPE THAT IRAQ REBUILD THIS ARMY BECAUSE IRAQ ALL THE WEST COUNTRY
    UNDER THE USA FLAGE WANTS TO MAKE THE IRAQ COUNTRY STILL WEEK WITHOUT
    STRONG ARMY AS THEY DONE WITH GERMAN AFTER THE WORLD WARS.

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We're on a mission to show you the real Iraq.

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