The Kuwaiti Dinar, denoted by KWD, is the official currency of Kuwait. The KWD, which is divided into 100 units, was introduced to Kuwait in 1960 as a replacement for the Indian Rupee. The currency has maintained a very high exchange rate, making it one of the highest valued currencies in the world. Moody's Rating: A2 S&P Rating: A+
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
Kuwait is a small, rich, relatively open economy with proved crude oil reserves of about 98 billion barrels - 10% of world reserves. Kuwait's economy is heavily dependent on oil export revenues. Kuwait has the third largest oil reserves in the world after Saudi Arabia and Iraq. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income.
Industries: Petroleum, petrochemicals, desalination, food processing and construction materials.
Main Export Trading Partners: Japan, South Korea, US, Singapore, Taiwan and Pakistan.
Exports Commodities: Oil, refined products and fertilizers.
Imports Commodities: Food, construction materials, vehicles and parts and clothing.
- In 5\1\2003 H.E. Sheikh Salem Abdulaziz Al-Sabah, the Governor, has announced the parity rate of the Kuwaiti Dinar (KD) exchange rate against the US Dollar for the first day of business in January 2003 corresponding to Sunday 5 January 2003. This rate is set at 299.63 fils per dollar with a margin of ±3.5%. This announcement came in accordance with the Decree
- In 11\5\2007 Sheikh Salem Abdulaziz Al- Al-Sabah announced a rise in the exchange rate of the Kuwaiti dinar against the US dollar to 289.14 fils/dollar from 292 fils/dollar, as of 11/5/2006. by sabeen
This correlation between each of the Kuwaiti dinar and the dollar was not Kind long time but limited to three years only, under the guardianship of the Central Bank over the level must be based upon the dollar exchange rate agreed upon by the CBK. The new orientation of the Kuwaiti Central Bank to secede from the dollar across the basket of currencies and thus currency Gulf Standard. From my point of view, I think that the Central Bank reduced adoption Kuwaiti dinar to the dollar in the basket of currencies to them.
In the summary of the association Kuwaiti dinar in the American currency (dollar), we see many of the pros and cons of this interconnectedness, which makes them more complicated matter to take the appropriate decision. Nhaih which helps the Central Bank of Kuwait in support of the Kuwaiti dinar and the knowledge that his career in the association, which happened in the beginning of 2003, the impact on the rate of flow of financial and national income of Kuwait images directly and first-hand both in raising interest rate of the Central Bank of Kuwait on commercial banks three times in less than three years thus raising interest rates on borrowers either individuals or companies. Especially at the present time, after the Kuwaiti dinar dissented on the dollar three months ago we engage in the basket of currencies of Kuwait on the positive long-term especially given that the Central Bank Prepares for currency integration with the Gulf Cooperation Council states during the next seven years, and this makes the purchasing value of the Kuwaiti dinar balanced Currently strayed because of this decision, which was Adviser by the President CBK has reduced the adoption of the Kuwaiti dinar to the dollar to 70% in the basket of currencies currently.aneela ali