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What happened when Kuwait revalued?


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#1 1palmetto

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Posted 09 February 2010 - 09:28 AM

Perhaps someone can enlighten me on this subject. When Kuwait came back after the invasion by Iraq, how exactly did their money revalue? When we first got into this investment, there were many references to Kuwait and the fact that people made a ton of money by doing exactly what we hoping will happen with Iraq. But when they RV'd did they also remove zeros from the printed (lop) as well as revalue? I guess what I am getting at is has any country in the entire history of the world EVER RV'd without removing zeros like we keep hearing in the press from CBI? To me, it seems highly unlikely that we will become instantly rich off this investment. I can see an RV of 1:1.40 , then climbing over the next couple of years to 1:$3 or something along those lines, and us making a decent return, but not hundreds of thousands or millions like everyone has hoped for all this time. I really want to believe this thing, but I am starting to have serious doubts. I have read lots of posts and even my financial planner and accountant believe we might make tons of $$$$ on this, and I want to believe that is true, but really, has a scenario like this EVER happened?
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#2 john1025

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Posted 09 February 2010 - 09:46 AM

I keep hearing Iraq compared to Kuwait. It is not the same at all. In the first place, Iraq's rate was set by Saddam Husien. It was never traded, I repeat never traded on the world currency market! Secondly, Kuwait's economy did not depend on Oil, never did, never will. Third, if we are basing any of this on the fact that Iraq has so much oil and it will help to boost their economy then i ask you this. Has it helped Venezuela? They are the second or third largest producer of oil in the world and their currency is crap. It sure isn't up there with Kuwait or the dollar.
I hope that at least partially answers your question. I don't know if Iraq will revalue or not. I've always been in for the long haul. Anytime I want to get out my dealer will buy back from me and only charge a small fee. I'm content to hold on for another year or two.
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#3 Torey0112

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Posted 09 February 2010 - 09:49 AM

Due to lack of experience, some speculators thought that with the war over, the Iraqi dinar would strengthen like the Kuwaiti dinar after the 1990-1991 Gulf War. But the Kuwaiti dinar was always a strong currency and the invasion there was short-lived, unlike Iraq.

http://www.bankintro...com/kuwait.html

IMF History

http://www.imf.org/e....ition_flag=YES
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-The infrastructure & banking system remained intact,unlike Iraq
-The government remained stable,unlike Iraq
-The GDP and Oil production resumed normal operations within 7 months

**The Government never officially devalued the KWD,the people lost confidence in the KWD,and uncertainty of the future and sold for USD at a lower rate(0.10 -$1.00 USD)

This happened again,albeit briefly at the start of OIF ;(above re: confidence factor)

Kuwaiti Dinar Exchange Rate Falls in Border Areas
30/03/2003

http://www.menafn.co...p?StoryId=16742

-The Government reissued the Currency in a 4th issue at the previous rate prior to Gulf War

Conversion Table: USD to KWD
and KWD to USD (Interbank rate)

http://www.oanda.com/convert/fxhistory

currency tools-FX history- oanda.com
set starting date:07/01/90 and ending date: 03/03/91.

07/30/1990 0.28950-07/31/1990 0.2880-currency per U.S. $
3.41880-U.S. $ equivalent

03/28/1991 0.29050 03/29/1991 0.29050-currency per U.S. $
3.4790-U.S. $ equivalent


Central Bank Kuwait-http://www.cbk.gov.kw/WWW/index.html

under market data, click:exchange rates- click:Avg. KD/USD Exchange Rate for history
this third issue was
withdrawn from circulation effective March 24, 1991 when the 4th issue was introduced
The unit of currency in Kuwait is the Kuwaiti Dinar (KD), divided into one thousand Fils.
rate is set at 299.63 fils per dollar with margins of 3.5%.
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#4 1palmetto

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Posted 09 February 2010 - 11:24 AM

Thanks to both of you. Makes more sense now.
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#5 jocko129

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Posted 09 February 2010 - 11:50 AM

Kuwait did not RV it RI
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#6 dasft

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Posted 09 February 2010 - 12:12 PM

Thanks for info
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