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
-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
-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withdrawn from circulation effective March 24, 1991 when the 4th issue was introduced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%.