The Kuwaiti Dinar is the official currency of Kuwait, a nation that lies on the north-western shore of the Persian Gulf. It is bordered by Saudi Arabia to the south and Iraq to the north. The emirate covers an area of 17,820 square kilometers (6,880 sq mi) and has a population of about 3.6 million.
Economy
Kuwait has a GDP (PPP) of 167.9 billion USD and per capita income of 81,800 USD, which makes it the fifth richest country in the world per capita.
Kuwait has proven crude oil reserves of 104 million oil barrels (15 km³), estimated to be 10% of the world’s reserves. According to the Constitution of Kuwait, all natural resources in the country and the associated revenues are government property.
As Kuwait is a tax-free country, the oil industry represents 80% of government revenue. Petroleum and petrochemicals account for nearly half of the GDP and 95% of all export earnings.
Since 2003, increasing oil prices have led to an increase in the economy of Kuwait.
In 2007, estimated exports stood at 59.97 billion USD and imports were about 17.74 billion USD.
The main exports are petroleum, petrochemicals, fertilizers, and financial services.
Kuwait imports a wide range of products, from food and textiles to machinery.
Kuwait's most important trading partners are Japan, the USA, India, South Korea, Singapore, China, the European Union, and Saudi Arabia.
Japan is the largest consumer of Kuwaiti oil, followed by India, Singapore, and South Korea.
History
The Kuwaiti Dinar was introduced in 1961 to replace the Gulf Rupee. At first it was equivalent to British Pound Sterling. As the Rupee was fixed at 1 shilling 6 pence, this resulted in a conversion rate of 13⅓ Rupees to the Dinar.
When Iraq invaded Kuwait in 1990, the Iraqi Dinar replaced the Kuwaiti Dinar. Coins and a large quantity 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.
To date five series of Kuwaiti Dinar banknotes 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 April 1, 1961 to February 1, 1982 and consisted of denominations of ¼, ½, 1, 5, and 10 dinars.
After the Central Bank of Kuwait replaced the Kuwait Currency Board, new ¼, ½, and 10 dinar notes were issued in November, 1970, followed by new 1 and 5 dinar notes in April, 1971. This second series was withdrawn on February 1, 1982.
