Kuwait issued its own currency, which is now considered the strongest in the world, on April 1, 1961. This was before its independence was completed by officially getting rid of British protection on June 19, 1961.
Preparation for the issuance of the first series of the Kuwaiti national currency, the “Dinar,” began with the issuance of the Kuwaiti Currency Law and the establishment of the National Monetary Council in 1960, while the circulation of national currency notes began to replace the previous currency, the “Gulf Rupee,” on April 1, 1961.
The Kuwaiti dinar has maintained its position as the most expensive currency in the world for many years, and its exchange rate against the dollar is currently 1 to 3.25, while one Kuwaiti dinar is equal to 3.03 euros and 2.59 British pounds.
The secret of the strength of the Kuwaiti dinar…the strongest currency in the world
The strength of the Kuwaiti dinar is due to several factors, including its enormous oil reserves, which the authorities currently estimate at about 100 billion barrels. This country, which is small in area and sparsely populated, occupies third place in terms of oil production in the Gulf region after Saudi Arabia and Iran, in addition to its wealth of natural gas. The quantity produced last year amounted to approximately 5 billion cubic metres.
Moreover, Kuwaiti oil is distinguished by its quality, homogeneity, unique chemical composition, and low sulfur content, which is why it is described as the most ideal for refining operations.
Kuwait’s richness in oil, in addition to its strategic location, has been reflected in its citizens, and it is considered one of the richest countries in the world in terms of per capita GDP.
The secret of the strength of the Kuwaiti dinar…the strongest currency in the world
Kuwait was able to maintain relative stability, and despite the huge material losses that resulted from Iraq’s invasion of it on August 2, 1990 and its occupation of it for nearly 7 months, its national currency did not decline or lose its advantage.
Regarding the history of the Kuwaiti dinar, the exchange rate of the new national currency was initially calculated by focusing on the de facto British pound until the exchange rate of the Kuwaiti national currency was later changed in 1975, when the National Monetary Council took this decision in the wake of the British Bank abandoning the exchange rate. Fixed row for pounds.
The secret of the strength of the Kuwaiti dinar…the strongest currency in the world
Over the next 28 years, the Kuwaiti dinar exchange rate was calculated using a basket of multiple currencies until 2003. Since then, a fixed exchange rate for the dinar against the dollar has been set at a ratio of 1 to 3, with a maximum permissible fluctuation of 3.5 percent.
Four years after this step, Kuwait stopped pegging its national currency to the US dollar and began calculating the dinar’s exchange rate against a basket of currencies that was not disclosed in 2007. Until now, the Kuwaiti dinar has a fixed exchange rate that protects it from brokers and speculators, and makes it, along with other economic features, the most expensive and strongest in the world.
arabic.rt.com
