Kuwaiti Dinar

The Kuwaiti dinar is the official currency of the country of Kuwait. The Kuwaiti dinar was introduced in 1960 but didn’t replace the Indian rupee until Kuwait gained its independence in the year 1961. After establishing their independence a currency board was established to issue the banknotes of the Kuwaiti dinar and maintain reserves of the currency.

Soon after the emergence of the currency board the Central Bank of Kuwait was established and this bank assumed the responsibility of issuing the Kuwaiti dinar. Initially the Kuwaiti dinar was issued at a value equal to one pound sterling. The Indian rupee was fixed against the pound at a rate that made one Kuwaiti dinar equal to 13 1/3 Indian rupees.

The Kuwaiti Dinar in Circulation

The Central Bank of Kuwait issues the Kuwaiti dinar both in coins and banknotes. The coins in the Kuwaiti dinar are issued in fils and they include the 1, 5, 10, 20, 50 and 100 with the 1 fil being extremely rarely used.

The paper money in the Kuwaiti dinar includes the ¼ dinar, ½ dinar, the 1 dinar as well as the 5, 10 and 20 dinar. The 1 dinar has a value that is equal to 1000 fils and the ½ dinar is equal to 500 fils and the ¼ dinar is equal to 250 dinar.

Investing in the Kuwaiti Dinar

The Kuwaiti dinar is considered one of the most valuable forms of currency with the currency exchange being one United States dollar currently equal to approximately 0.2921 Kuwaiti dinar. Despite the relative high value of the Kuwaiti dinar it may not be a sound investment or good for currency trading and currency speculation.

The value of the dinar has showed an overall decline over the past five years. The decline has not been significant nor has it been steady but the overall value has had at least a minimal decrease in recent years.

* This post from Iraqi-dinar.org

Posted in Dinar