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When the list of the most preferred countries for employment is concerned, countries in the middle east come on top of the list, and undoubtedly, Kuwait is one of them. Simply, the currency of Kuwait, i.e. Dinar, is quite strong when compared to other ones in the world. Here is a table stating how a Kuwait Dinar is equivalent to.   

Currency 1 KWD Equivalents
Euro 2.921727
US Dollar 3.289591
British Pound 2.491309
Canadian Dollar 4.407819
Australian Dollar 4.653685
Indian Rupee 229.068249

People like us are often curious about how the currency rates are determined, and most importantly, which authority decides it. Going beyond, one more question rises which these currencies are different from country to country? Kuwait currency rate is one of the strongest, even more than the US Dollar and the Euro. Indian Rupee is far away from all these currencies. Let’s check why this difference is.

Kuwait Dinar’s rate is decided based on the interest rate that the central bank of Kuwait offers while conversion. The government or even the central bank cannot allow printing currency excessively as the trade of goods and prices may fall and bring unnecessity in the entire process. Handing over too much money to the people may result in instability, they will start bidding on all the possible things, as a result of which inflation will go high. Keeping this in continuation may further result in hyperinflation, i.e. prices of goods and services will go high more than 50% per month and so on. To simplify, consider you have purchased one thing in the morning for KD10, by the end of the day, the same thing will be sold at KD15 or more. Usually, in such scenarios, stockpiling is noticed, which results in falling down the economy. This is why the government and central authorities restrict currency printing, which results in a difference in the currency rates.

A particular country’s economic growth and financial stability also determines the exchange rate. Better opportunities offered by the world economic leaders allow investors to invest more and more in the country.

To conclude, all these things determine the Kuwait currency rate in the world. One of the fastest developing countries, Kuwait is building its economy stronger. Since it is the producer of petrochemical and natural gases, the Kuwait currency rate is a bit high. Banks in Kuwait offer currency exchange centres in almost every city all over the country where you can get converted your currency into Kuwaiti Dinar and vice-a-versa.  

Post Author: Fathiyya Al Shaikh

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