Finance:Kuwaiti dinar

Short description: Official monetary currency of Kuwait

Kuwaiti dinar

دينار كويتي (Arabic)
1 Dinar banknote of Kuwait (sixth edition)
ISO 4217
Code	KWD (numeric: 414)
Subunit	0.001
Unit
Symbol	د.ك or KD‎
Denominations
Subunit
​1⁄1,000	fils
Banknotes
Freq. used	KD ​1⁄4, KD ​1⁄2, KD 1, KD 5, KD 10, KD 20
Coins
Freq. used	5, 10, 20, 50, 100 fulūs
Demographics
User(s)	Kuwait
Issuance
Central bank	Central Bank of Kuwait
Website	www.cbk.gov.kw
Valuation
Inflation	3.15%
Source	[[Company:Bank of America|]]The World Factbook, 2017 est.
Pegged with	Undisclosed currency basket $1 USD = 0.29963 KD

The Kuwaiti dinar (Arabic: دينار كويتي, code: KWD) is the currency of Kuwait. It is sub-divided into 1,000 fulūs.

As of 2023, the Kuwaiti dinar is the currency with the highest value per base unit, with KD 1 equalling United States dollar 3.25, ahead of the Bahraini dinar with BD 1 equalling US$2.65 and Omani rial at US$2.60.

History

The dinar was introduced in 1961 to replace the Gulf rupee, equal to the Indian rupee. It was initially equivalent to £1 sterling. As the rupee was fixed at 1/6d, that resulted in a conversion rate of ₹​13 ¹⁄₃ to KD 1.

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.

Coins

The coins in the following table were introduced in 1961. The design of all coins is similar and has not changed since they were first minted. On the obverse is a boom ship, with year of minting in both Islamic and Common Era in Arabic. The reverse contains the value in Arabic within a central circle with الكُوَيت (Arabic for The Kuwait) above and KUWAIT in English below.

Unlike many other Middle Eastern currencies, Kuwait has a coin worth 0.02 of its main currency unit rather than 0.025 or 0.25 - though this latter does exist as a banknote (see below).

The 1 fils coin was last minted in 2014.

Coins of the Kuwaiti dinar
Obverse	Reverse	Value	Diameter	Thickness	Weight	Composition			1 fils	17 mm	1.2 mm	2 g	Nickel-brass			5 fils	19.5 mm	1.2 mm (1961-2011) 1.45 mm (2012-)	2.5 g (1961-2011) 2.55 g (2012-)	Nickel-brass (1961-2011) Brass-plated steel (2012-)			10 fils	21 mm	1.5 mm	3.75 g (1961-2011) 4 g (2012-)	Nickel-brass (1961-2011) Brass-plated steel (2012-)			20 fils	20 mm	1.36 mm	3 g	Cupro-nickel (1961-2011) Stainless steel (2012-)			50 fils	23 mm	1.54 mm (1961-2011) 1.7 mm (2012-)	4.5 g	Cupro-nickel (1961-2011) Stainless steel (2012-)			100 fils	26 mm	1.71 mm (1961-2011) 1.8 mm (2012-)	6.5 g (1961-2011) 6.7 g (2012-)	Cupro-nickel (1961-2011) Stainless steel (2012-)

Banknotes

Six series of the Kuwaiti dinar banknote have been printed.

First series

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 KD ​¹⁄₄, KD ​¹⁄₂, KD 1, KD 5 and KD 10.

Second series

After the creation of the Central Bank of Kuwait in 1969 as a replacement to the Kuwaiti Currency Board, new KD ​¹⁄₄, KD ​¹⁄₂ and KD 10 notes were issued from 17 November 1970, followed by the new KD 1 and KD 5 notes of the second series on 20 April 1971. This second series was withdrawn on 1 February 1982.

Third series

The third series was issued on 20 February 1980, after the accession to the throne of late Emir Jaber Al-Ahmad Al-Sabah, in denominations of KD ​¹⁄₄, KD ​¹⁄₂, 1, 5 and KD 10. A KD 20 banknote was introduced later on 9 February 1986. As a result of the state of emergency after the 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 had 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
KD ​1⁄4 (د.ك١/٤)	54-86
KD ​1⁄2 (د.ك١/٢)	30-37
KD 1 (١د.ك)	47-53
KD 5 (٥د.ك)	18-20
KD 10 (١٠د.ك)	70-87
KD 20 (٢٠د.ك)	9-13

Fourth series

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 KD ​¹⁄₄, KD ​¹⁄₂, KD 1, KD 5, KD 10 and KD 20.

Fifth series

The fifth series of Kuwaiti banknotes was in use from 3 April 1994 and included high-tech security measures which have now become standard for banknotes. It was withdrawn on 1 October 2015. Denominations were as in the fourth series.

Fifth series Kuwait banknotes ("We Seek God's Assistance")
Obverse	Reverse	Value	Obverse	Reverse
		KD ​1⁄4	Coat of arms of Kuwait; Vignette of Kuwaiti Dhow "Al-Mouhaleb"; Vignette of a Kuwaiti Chest	Vignette of young girls playing traditional game
		KD ​1⁄2	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
		KD 1	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
		KD 5	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
		KD 10	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
		KD 20	Coat of arms of Kuwait; Cannon; Red Fort at Jahra	Central Bank of Kuwait building; City gate of the old wall

Sixth series

Central Bank of Kuwait brought the sixth series of Kuwaiti banknotes into circulation on 29 June 2014. Some of the notes are coarse so that the blind can identify them by touch.

Sixth series Kuwaiti banknotes
Obverse	Reverse	Value	Dimensions (millimeters)	Color	Obverse	Reverse	Date of issue
		KD ​1⁄4	110 x 68 mm	Brown	Liberation Tower and a dhow ship	A traditional wooden Kuwaiti door and the first Kuwaiti coin	June 29, 2014
		KD ​1⁄2	120 x 68 mm	Green	Kuwait Towers and a dhow ship	Hawksbill sea turtle and the silver Pomfret fish (Al Zubadi)	June 29, 2014
		KD 1	130 x 68 mm	Grey	The Grand Mosque, a bateel dhow ship	Illustration of many influences of Ancient Greek Civilization in Kuwait's Failaka Island	June 29, 2014
		KD 5	140 x 68 mm	Purple	The new headquarters of the Central Bank of Kuwait	Oil refinery and an Oil Tanker	June 29, 2014
		KD 10	150 x 68 mm	Pink	The National Assembly of Kuwait, a sambuk dhow ship	Falcon and camel dressed in a sadu saddle	June 29, 2014
		KD 20	160 x 68 mm	Blue	Seif Palace, a dhow ship	Kuwaiti pearl diver and Al-Boom traditional Kuwaiti dhow ship	June 29, 2014

Commemorative issues

In both 1993 and 2001, the Central Bank of Kuwait issued commemorative KD 1 polymer banknotes to celebrate its Liberation from Iraq. The first commemorative note, dated 26 February 1993, was issued to celebrate the second anniversary of its 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. The second commemorative note, dated 26 February 2001, was issued to celebrate the tenth anniversary of its 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. Even though they were denominated as KD 1, both of the commemorative notes state that they were not legal tender.

Average exchange rate of Kuwaiti dinar against US dollar (fils)

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 United States dollar 1 = KD 0.29963 with margins of ±3.5%. The central rate translates to approximately KD 1 = United States dollar 3.53.

From 16 June 2007, the Kuwaiti dinar was re-pegged to a basket of currencies, and was worth about $3.28 as of December 2016. It is the world's highest-valued currency unit.

See also

• Kuwait
• Economy of Kuwait

References

• This article draws heavily on the corresponding article in the German Wikipedia, retrieved 2 March 2005.

External links

• Images and description of banknotes ( New Central Bank of Kuwait website )
• The banknotes of Kuwait (in English and German)