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 Kurdish regions of Iraq. The government of the Kurdish region did not have the printing plates of the Swiss Dinar, but it also refused to accept lower-quality Saddam notes (which were issued in huge amounts). Since the supply of Saddam notes increased while the supply of Swiss dinar notes remained stagnant (even decreased because of torn notes), the Swiss dinar appreciated against the Saddam note. By having its own stable currency, the northern part of Iraq effectively evaded inflation, which ran rampant throughout the rest of the nation.
Read more about this topic: Iraqi Swiss Dinar
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“The post-office had a great charm at one period of our lives. When you have lived to my age, you will begin to think letters are never worth going through the rain for.”
—Jane Austen (1775–1817)