As of 2023, the Kuwaiti dinar is the currency with the highest value per base unit, with KD 1 equallingUS$3.26,[3] ahead of theBahraini dinar withBD 1 equalling US$2.65 andOmani rial at US$2.60.
The dinar was introduced in 1961 to replace theGulf rupee, equal to theIndian rupee. It was initially equivalent to £1 sterling.[4] As the rupee was fixed at1s.6d., that resulted in a conversion rate of Rs.13+1⁄3 to KD 1.[5]
WhenIraq invaded Kuwait in 1990, theIraqi dinar replaced the Kuwaiti dinar as the currency and large quantities of banknotes were stolen by the invading forces.[6] Afterliberation, 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 bedemonetized.[5]
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 aboom ship, with year of minting in both Islamic and Common Era in Arabic. The reverse contains the value in Arabic within a central circle withالكُوَيت (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 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.
After the creation of theCentral 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November 1970, followed by the new KD 1 and KD 5 notes of the second series on 20 April 1971.[7] This second series was withdrawn on 1 February 1982.
The third series was issued on 20 February 1980, after the accession to the throne of late EmirJaber 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 theInvasion 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:
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.
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.
Central Bank of Kuwait brought the sixth series of Kuwaiti banknotes into circulation on 29 June 2014.[8][2][9] Some of the notes are coarse so that the blind can identify them by touch.[8]
In both 1993 and 2001, the Central Bank of Kuwait issued commemorative KD 1polymer 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.[11] 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.[12] 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 weightedcurrency basket. From 5 January 2003 until 20 May 2007, the pegging was switched toUS$1 = KD 0.29963 with margins of ±3.5%.[13] The central rate translates to approximately KD 1 =US$3.53.
From 16 June 2007, the Kuwaiti dinar was re-pegged to a basket of currencies,[14] and was worth about $3.28 as of December 2016. It is the world's highest-valued currency unit.[2]
^Linzmayer, Owen (2012). "Kuwait".The Banknote Book. San Francisco, CA: www.BanknoteNews.com.Archived from the original on 23 September 2015. Retrieved27 April 2012.
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