Why is kuwaiti dinar so strong

Initially, it was pegged to the pound sterling, which would be the national currency of the United Kingdom plus various British territories. However, changing circumstances mean that the Kuwaiti dinar has been pegged to various other things since that time. For instance, it was pegged to a basket of currencies chosen by the Kuwaiti Currency Board from to After which, the Kuwaiti dinar was pegged to the U. Something that continued until , which was when the Kuwaiti Currency Board switched back to a basket of currencies.

Of course, maintaining a peg is much easier said than done. Certainly, countries can say what they want about the official value of their currencies, but if they want their words to have power, they need to use various tools to make it so. Moreover, the Kuwaiti government has been pouring a lot of resources into the sovereign wealth fund set up by the Kuwait Investment Authority, which is a sensible move in preparation for the future.

With that said, it is important to note that the value of the Kuwaiti dinar relative to other currencies is pretty much meaningless in most contexts. Kuwait is a small country, meaning that people outside of Kuwait have very little reason to make use of Kuwaiti dinars. Unlike Nigeria and some African countries where sales of oil is a disaster which the politicians and public officials embezzle and mismanage, revenue from sales of oil in Kuwait is used by its to build infrastructure, develop microeconomic sectors to increase GDP.

The above advantages enable Kuwait to peg its exchange rate at a high level as this earns them more income because their exports are much more valued than their imports. Kuwait is a tiny oil-rich country with a population of 4.

Save my name, email, and website in this browser for the next time I comment. Subscribe To Our Newsletter. Or which one does have the highest value?

Or which currency is the oldest of all? Well, there are currencies used in countries at present. US Dollar or Euro is the currency that strikes the mind of most people when they think of currencies with the highest value or the strongest currency, which is not true at all. I know its bit hard to digest the fact that a small country like Kuwait will occupy the first position on this list. Kuwait came into circulation in , after the independence of Kuwait.

Fun fact: This currency can be openly used for any purpose, even for online gambling without any regulations and additional charges. The Bahrain Dinar is the second-highest in the world that came into existence in the year Bahrain is a Persian Gulf island state with an overall population of just around 1 million people.

Before Bahrain used the Persian Gulf rupee as their currency. Another strong from the Middles East that came into circulation in the year , the Omani Rial is the third-highest in the world. Fun fact: Oman used to have INR as its local before , later replaced with a stronger currency. The Jordanian Dinar came into circulation in , Jordanian Dinar has been ranked as the fourth-highest in the world, although Jordan is not much economically developed and also lacks essential resources, like oil.

GBP is the currency of Great Britain. The KWD is divided into fils, a coin that is used in many Arab countries. The Kuwaiti Dinar is widely regarded as the world's most powerful currency.

The Kuwaiti dinar is the strongest circulating currency as of May , with one Kuwaiti dinar equaling 3. Kuwait has no taxes and a relatively low unemployment rate.

Click here to convert the rupee to Kuwaiti dinar KWD. The Gulf rupee was a currency tied to the Indian rupee. The Gulf rupee, issued by the Indian government in , was intended for use outside of India, primarily in the Persian Gulf region. As of May , the Bahraini dinar is the second most valuable circulating currency, with one Bahraini dinar equaling 2.

Bahrain is an island nation in the Persian Gulf with a population of slightly over one million inhabitants. Its primary source of revenue, like Kuwait's, is global gas and petroleum export. Surprisingly, the Saudi Riyal, along with the Bahraini Dinar, is officially recognised as legal money in Bahrain. Their exchange rate is also set, with 1 Dinar equaling 10 Riyals. The Oman Rial is the national currency of Oman, which is located on the Arabian Peninsula, and it is currently ranked third among the world's most valuable currencies.

Before , Oman's local currency was the Indian rupee INR , which was quickly replaced by a more powerful currency. Oman's economy is based mostly on its oil reserves, which are located on the southeastern coast of the Arabian Peninsula. The Omani riyal is tied to the US dollar. Jordan's government maintains stable exchange rates, which is one of the main reasons behind the currency's high value.