With stronger local currencies the state would get fewer dirhams, dinars or riyals for every petrodollar.

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The dollar went from 1.5 to 1.8 dinars in the first ten days of July.

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This presents an enormous temptation to Mr Hussein, who has billions of Swiss dinars squirreled away in warehouses.

ECONOMIST: Dwindling dinars

So when the rest of the country switched to locally printed dinars, the Kurds stuck with their old money.

ECONOMIST: Dwindling dinars

Kurdish officials say his agents pay a local tax on smuggled rice out of this stash of Swiss dinars.

ECONOMIST: Dwindling dinars

Strpce Serbs tend to pay for bigger items like TV sets in euros, using dinars for such things as groceries.

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Iraq will benefit greatly as the price of oil escalates going forward as many countries currently hold Dinars and will become customers for decades!

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That could force the Kurds to eke another 14 billion dinars-worth of economic activity each year out of the same physical supply of cash.

ECONOMIST: Dwindling dinars

The convoy carried coins with denominations ranging from 25 Iraqi dinars to 100 Iraqi dinars (about 2 cents to about 7 cents in U.S. currency).

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Even if the government kept its mitts off, the central bank would still have no reliable gauge to tell it if it's printing the right amount of dinars.

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But it also hints at the capricious Mr Hussein's power to cripple the Kurdish economy overnight, should he decide to flood it by releasing billions of Swiss dinars.

ECONOMIST: Dwindling dinars