Kuwaiti Dinar Currency

Introduction

Kuwaiti dinar is the official currency of Kuwait. This country is among the richest countries in the world. Kuwaiti dinar was established in 1960 replacing the gulf rupee when it gained its independence.

This currency has secured a place of high value currency leaving even the strongest currencies such as Great Britain Pound as well as United States dollar far behind. Unlike other currencies this dinar is also dividing into 1000 fils.

The Kuwaiti dinar currency code is KWD and 414 is the numeric code as per ISO standards. The English symbol is ‘KD’ and they follow a floating rate regime as the monetary system, but it does not fluctuate much.

Popularity

Dinar is the popular official currency unit that constituted the Ottoman Empire. ‘Dinar’ this word is taken from "denarius". This was the word representing the previous times currency of Rome. Kuwaiti dinar has great importance and high value. Moreover, it maintains its reputation and keeps a very high exchange rate in comparison to other major currencies of the world such as United States dollar, Great British pound, Euro etc.

The highest per capita income is sustaining owing to its highly valued currency. The Kuwait economy is dependent on the oil revenues and earns by exporting oil. This country has 10% crude oil reserves earning 75% of the income. However, the crude oil exported does not use the dinar and the oil is indeed valued in dollar terms.

As their climate is unfavorable for agriculture, they import all the basic essentials including water. Hence maintaining high currency exchange rate assists in purchasing power as it has to offer less in imports.

Structure

The coins in circulation are in denominations as fils such as 1, 5, 10, 20, 50 and 100 fils coins. The central bank has issued banknotes for circulation in different series, but the coins remain unchanged till date.

The fifth issue of notes is in circulation. But, during the Iraqi invasion, many dinar notes were stolen from the central bank vaults and hence notes are not exchanged by central bank. The features are advanced in technology and serve right security in the banknotes.