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Kuwait's Fourth Issue was produced before the Iraqi invasion of August 1990 but could not be released as planned — the occupation froze the Central Bank's operations entirely. When liberation came in February 1991, the Kuwaiti government faced an immediate currency crisis: the Third Issue dinars had been looted en masse by Iraqi forces and flooded into regional black markets, some reportedly used to finance arms purchases. A rapid demonetization was ordered, and the Fourth Issue — this series — was rushed into circulation with a tight redemption window deliberately designed to strand the stolen notes.
The replacement exercise was one of the fastest demonetizations of the post-war Gulf, completed in a matter of weeks in 1991.