Kuwaiti dinar

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Kuwaiti dinar
دينار كويتي (Arabic)
1 Kuwait-Dinar(1994).jpg
1 dinar of 1994
ISO 4217 code KWD
Central bank Central Bank of Kuwait
 Website www.cbk.gov.kw
User(s)  Kuwait
Inflation 4.7%
 Source The World Factbook, 2011 est.
Subunit
11,000 fils
Symbol د.ك or K.D.
Coins
 Freq. used 5, 10, 20, 50, 100 fils
Banknotes 14, 12, 1, 5, 10, 20 dinars

The dinar (Arabic: دينار, ISO 4217 code KWD) is the currency of Kuwait. It is sub-divided into 1,000 fils.

History[edit]

The dinar was introduced in 1961 to replace the Gulf rupee. It was initially equivalent to one pound sterling. As the rupee was fixed at 1 shilling 6 pence, this resulted in a conversion rate of 13 13 rupees to the dinar.

When Iraq invaded Kuwait in 1990, the Iraqi dinar replaced the Kuwaiti dinar as the currency and large quantities of banknotes were stolen by the invading forces. After liberation, the Kuwaiti dinar was restored as the country's currency and a new banknote series was introduced, allowing the previous notes, including those stolen, to be demonetized.

For a wider history surrounding currency in the region, see The History of British Currency in the Middle East.

Coins[edit]

The following coins were first introduced in 1961:

  • 1 (١) fils (No longer issued)
  • 5 (٥) fils
  • 10 (١٠) fils
  • 20 (٢٠) fils
  • 50 (٥٠) fils
  • 100 (١٠٠) fils

Banknotes[edit]

A 10 Kuwaiti Dinar banknote of the Central Bank of Kuwait.

To date five series of the Kuwaiti dinar banknote have been printed. The first series was issued following the pronouncement of the Kuwaiti Currency Law in 1960 which established the Kuwaiti Currency Board. This series was in circulation from 1 April 1961 to 1 February 1982 and consisted of denominations of 14, 12, 1, 5 and 10 dinars.

After the creation of the Central Bank of Kuwait in 1969 as a replacement to the Kuwaiti Currency Board, new 14, 12 and 10 dinar notes were issued from 17 November 1970, followed by the new 1 and 5 dinar notes of the second series on 20 April 1971.[1] This second series was likewise withdrawn on 1 February 1982.

The third series was issued on 20 February 1980, after the accession to the throne of Emir Jaber al-Ahmad al-Jaber al-Sabah, at that time in denominations of 14, 12, 1, 5 and 10 dinar. A 20 dinar banknote was introduced on 9 February 1986. As a result of the state of emergency after Iraq's invasion of Kuwait, this series was ruled invalid with effect from 30 September 1991. Significant quantities of these notes were stolen by Iraqi forces and some have appeared on the international numismatic market. The "Standard Catalog of World Paper Money" (A. Pick, Krause Publications) lists notes with the following serial number prefix denominators as being among those stolen:

Denomination Prefix Denominators
14 (١/٤)dinar 54-86
12 (١/٢)dinar 30-37
1 (١) dinar 47-53
5 (٥) dinar 18-20
10 (١٠) dinar 70-87
20 (٢٠) dinar 9-13

After the liberation, a fourth series was issued on 24 March 1991 with the aims of replacing the previous withdrawn series as quickly as possible and guaranteeing the country's swift economic recovery. This fourth series was legal tender until 16 February 1995. Denominations were 14, 12, 1, 5, 10 and 20 dinar.

The fifth series of Kuwaiti banknotes has been in use since 3 April 1994 and include high-tech security measures which have now become standard for banknotes. Denominations were as in the fourth series.

In both 1993 and 2001, the Central Bank of Kuwait issued commemorative 1-dinar polymer banknotes to celebrate its Liberation from Iraq. The first commemorative note, dated 26 February 1993, was issued to celebrate the second anniversary of the Liberation. The front features the map of the State of Kuwait, the emblem of Kuwait and on the left and right side of the note is the list of nations that assisted in its Liberation, in both English and Arabic.[2] The second commemorative note, dated 26 February 2001, was issued to celebrate the tenth anniversary of the Liberation. One feature from the note is an optically variable device (OVD) patch that shows a fingerprint, a reference to the victims of the invasion and occupation of Kuwait.[3] Even though they were denominated as 1 dinar, both of the commemorative notes state that they were not legal tender.

Banknotes of the Kuwaiti dinar (1994 "We Seek God's Assistance" issue)
Image Value Obverse Reverse
[1] 14 dinar Coat of arms of Kuwait; Vignette of Kuwaiti Dhow "Al-Mouhaleb"; Vignette of a Kuwaiti Chest Vignette of young girls playing traditional game
[2] 12 dinar Coat of arms of Kuwait; Vignette of Kuwaiti Money Changers' Stalls; Vignette of a Kuwaiti Coffee Pot Vignette of young boys playing traditional game with marbles
[3] 1 dinar Coat of arms of Kuwait; Vignette of a traditional Oil Lamp; Vignette of Kuwait Towers Vignette of Mina Al-Shuwaikh; Vignette of a traditional Water Storage Vessel on Stand
[4] 5 dinars Coat of arms of Kuwait; Vignette of the new telecom Tower 'Liberation Tower'; Vignette of a traditional Grinding Stone Vignette of an Oil Refinery; Vignette of A’Zour Power Station; Vignette of Kuwaiti Water Tanks; Vignette of Electricity Pylons
[5] 10 dinars Coat of arms of Kuwait; Traditional water vessel; The state great Mosque Fishermen; Vignette Dhow under full sail; A traditional Kuwaiti door; A pearl diving scene; Vignette of a Kuwaiti incense burner
[6] 20 dinars Coat of arms of Kuwait; Cannon; Red Fort at Jahra Central Bank of Kuwait building; City gate of the old wall

Exchange rates[edit]

From 18 March 1975 to 4 January 2003, the dinar was pegged to a weighted currency basket. From 5 January 2003 until 20 May 2007, the pegging was switched to 1 US dollar = 0.29963 dinar with margins of ±3.5%.[4] The central rate translates to approximately 1 dinar = $3.53 (USD)

From 16 June 2007, the Kuwaiti dinar was re-pegged to a basket of currencies,[5] and is now worth about (). It is the world's highest-valued currency unit.

Average exchange rate of Kuwaiti dinar against US dollar (fils)[6]
Current KWD exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD
From Investing.com: AUD CAD CHF EUR GBP HKD JPY USD
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD

See also[edit]

References[edit]

  1. ^ Linzmayer, Owen (2012). "Kuwait". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. 
  2. ^ Kuwait 1 dinar commemorative banknote (1993) Banknote Museum (banknote.ws). Retrieved on 11 February 2013.
  3. ^ Kuwait 1 dinar commemorative banknote (2001) Banknote Museum (banknote.ws). Retrieved on 11 February 2013.
  4. ^ Exchange Rates, Central Bank of Kuwait
  5. ^ "Kuwait pegs dinar to basket of currencies". Forbes. 20 May 2007. Retrieved 6 June 2007. 
  6. ^ Central Bank Of Kuwait Website
  • This article draws heavily on the corresponding article in the German Wikipedia, retrieved 2 March 2005.

External links[edit]

Preceded by:
Gulf rupee
Ratio: 1 dinar = 1313 rupees = 1 British pound
Currency of Kuwait (pre war)
1961 – August 2, 1990
Succeeded by:
Iraqi dinar
Reason: Iraqi invasion of Kuwait
Preceded by:
Iraqi dinar
Reason: liberation of Kuwait
Ratio: = pre-war Kuwaiti dinar
Currency of Kuwait (post war)
early 1991 –
Succeeded by:
Current