The Reason Kuwait Dinar Had The One To One Rate

[Wheelman]

The Central Bank is canceling the value of Kuwaiti dinars that were seized from the Central Bank and put into circulation by the Iraqis. The invalid serial numbers were posted today in front of all banks in the city.

 

All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.

[Longtimelurker]

32 minutes ago, Wheelman said:

The Central Bank is canceling the value of Kuwaiti dinars that were seized from the Central Bank and put into circulation by the Iraqis. The invalid serial numbers were posted today in front of all banks in the city.

 

All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.

Interesting timing..

[gregp]

NY Times article from 1991 reporting the revaluation of the Kuwaiti dinar

 

http://dfsu.org/wp-content/themes/bizstream/timthumb.php?src=http://dfsu.org/wp-content/uploads/2015/02/bloglogo5.png&w=700&h=280&zc=1

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05 Mar 2015  vweb  In IRAQComments Offon NY Times article from 1991 reporting the revaluation of the Kuwaiti dinar

Jul 19, 2013

When Iraq invaded Kuwait in August of 1990, the value of the Kuwaiti dinar dropped to about 5 cents. In other words, it took 20 Kuwaiti dinars to buy one dollar.

In February of 1991 Iraq was expelled from Kuwait, and a month later, the banks revalued their currency to $3.47, the highest valued currency in the world. When this occurred, the New York Times reported the event on March 25, 1991.

http://www.nytimes.com/1991/03/25/world/after-the-war-no-electricity-but-kuwait-reopens-its-banks.html

It still has no water and little electricity or food, but Kuwait revived its banking system today, introducing a new currency.

Banks reopened for the first time since Iraqi occupation forces shut them down in December. Thousands of people lined up to exchange their old Kuwaiti dinars for crisp new ones and to withdraw a limited amount of money….

All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.

At the same time, the UN put Iraq under trade sanctions, crashing the value of the Iraqi dinar (IQD) from $3.22 to about 4000 to the dollar. Their currency could only be spent in Iraq itself, and people had to carry around wads of 25,000 dinar notes to buy groceries.

Then in 2003 coalition forces invaded Iraq and overthrew Saddam Hussein. By 2004 we gave them a new currency without Saddam’s picture on it. The value soon doubled and went up to 2000 to the dollar. A few years ago the Central Bank of Iraq managed to stabilize the value at 1166 per dollar.

On June 27, 2013 the UN removed Iraq from Chapter VII sanctions, allowing Iraq to regain control of close to $80 Billion in frozen funds that had been sitting in western banks since 1990. This also allowed Iraq to be reinstated on the world’s banking network, as soon as they are ready. At the same time many expect to see the IQD revalued at or near its former position.

– See more at: http://www.gods-kingdom-ministries.net/daily-weblogs/2013/07-2013/ny-times-article-from-1991-reporting-the-revaluation-of-the-kuwaiti-dinar/#sthash.RptXNXjK.dpuf

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[rvmydinar]

13 hours ago, Wheelman said:

1.  All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid.

 

2.  The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.

Let me get this straight, so i can understand better.

 

1. This means 1 old kuwaiti dinar= 1 new kuwaiti lower denoms ( i am talking about denomination notes ) right.

2. Is this exchange applied to iraqi citizens only? Because it said 1 new kuwaiti dinar=$3.47. What about dinar investors ( out of kuwaiti ) who hold old kuwaiti dinars? If dinar investors out of kuwaiti hold old kuwaiti dinar, can they exchange their old kuwaiti dinar for dollars in the us at that time with the same exchange rate=1 old kuwaiti dinar: $3.47? 

[Wheelman]

1 minute ago, rvmydinar said:

Let me get this straight, so i can understand better.

 

1. This means 1 old kuwaiti dinar= 1 new kuwaiti lower denoms ( i am talking about denomination notes ) right.

2. Is this exchange applied to iraqi citizens only? Because it said 1 new kuwaiti dinar=$3.47. What about dinar investors ( out of kuwaiti ) who hold old kuwaiti dinars? If dinar investors out of kuwaiti hold old kuwaiti dinar, can they exchange their old kuwaiti dinar for dollars in the us at that time with the same exchange rate=1 old kuwaiti dinar: $3.47? 

They collected all invalid serial numbers of the streets. That’s why they did a 1 to 1.

[rvmydinar]

3 minutes ago, Wheelman said:

They collected all invalid serial numbers of the streets. That’s why they did a 1 to 1.

So this is applied to kuwaiti citizens only inside of kuwaiti and this exchange was done in country of kuwaiti only.. Therefore, for dinar investors, out of kuwaiti, have to fly to kuwaiti in order to exchange their old kuwaiti dinars with new kuwaiti dinar note at 1 :1 first. Then after that, they can exchange their new kuwaiti dinar for dollar at the rate 1 new kuwaiti dinar : $3.47. Is it right?