Can someone explain to me how the Kuwaiti currency RVd?

[cashman54]

Can someone explain to me how the Kuwaiti currency RVd? What was the value before the RV and then what was the value after? Was it true, like the Iraqi Dinar, that things did not "appear" optimistic before the change happened? Any details would be great, tried looking online but didn't find too much of nothing.

[keepmwlknfny]

Can someone explain to me how the Kuwaiti currency RVd? What was the value before the RV and then what was the value after? Was it true, like the Iraqi Dinar, that things did not "appear" optimistic before the change happened? Any details would be great, tried looking online but didn't find too much of nothing.

From my understanding the Kuwait dinar didnt really RV....the street value of the Kuwait dinar plummeted when Saddam invaded because he flooded the country with Iraqi dinar....the Kuwait dinar was basically worthless and then once we got Saddam out and they changed the Kuwait dinar, the real value was returned....But from what I have heard, you wont be able to find where the actual exchange rate dropped and was then revalued.....completely different scenerio then whats going on in Iraq today.....Im sure there are some here that can go into more detail about what really went down with the Kuwaiti dinar....

[jomans]

I agree with Keep. What really happened was when Sadaam invaded Kuwait, the Kuwaiti Dinar was assumed worthless on the street. Some lucky folks took advantage of that and bought the Kuwaiti Dinar at the time for the street value, which was pennies. When Sadaam was ousted by the US, the Kauaiti Dinar value was reinstated by their banks (which actually,the banks never officially did devalue). So, those lucky enough to have bought Kuwaiti Dinar from the street at low values went to the banks and cashed in.... and made a bundle

[Nani?]

From my understanding the Kuwait dinar didnt really RV....the street value of the Kuwait dinar plummeted when Saddam invaded because he flooded the country with Iraqi dinar....the Kuwait dinar was basically worthless and then once we got Saddam out and they changed the Kuwait dinar, the real value was returned....But from what I have heard, you wont be able to find where the actual exchange rate dropped and was then revalued.....completely different scenerio then whats going on in Iraq today.....Im sure there are some here that can go into more detail about what really went down with the Kuwaiti dinar....

I think what the poster is trying to get at is what procedures happened in Kuwait that allowed their currency to rise back to its value, and how can we look at the situation and compare it to Kuwait course Keepm does not want an RV so I wouldn't ask him

[jomans]

See my previous post Nani7....

[Darin]

I think what the poster is trying to get at is what procedures happened in Kuwait that allowed their currency to rise back to its value, and how can we look at the situation and compare it to Kuwait course Keepm does not want an RV so I wouldn't ask him

Ha - Poor KeepM

Anyways, some points to add that I have read:

The printing plates for the KWD were stolen (which was meant S.H. could print his own stash of KWD)

The attempted to enforce the use of IQD within the country

Also, prior to the R/I (Re-instatement) they informed the nation they had no intention of bringing back the value. (Which lead to a R/I very shortly after)

Looking back, it would be hard to believe that to be true considering the bank value was completely separate from the currency value.

I would "love" to hear more details to the story... Because if they were to R/I, how come I have heard stories about how the market reached as high as $7 at some point(s). I take it the KWD is not a pegged currency or was not at the time??

[hunz]

From my understanding the Kuwait dinar didnt really RV....the street value of the Kuwait dinar plummeted when Saddam invaded because he flooded the country with Iraqi dinar....the Kuwait dinar was basically worthless and then once we got Saddam out and they changed the Kuwait dinar, the real value was returned....But from what I have heard, you wont be able to find where the actual exchange rate dropped and was then revalued.....completely different scenerio then whats going on in Iraq today.....Im sure there are some here that can go into more detail about what really went down with the Kuwaiti dinar....

Actually I think it plummeted because Saddam stole the currency plates from Kuwait and started printing a ton of Kuwait dinars.

[Legolas]

The KWD reinstatement has been discussed in detail dozens of times on this site. A search of the archives will reveal many excellent posts describing what occurred. Bottom line, as Keep aptly put it......there's is no comparison between what occurred in Kuwait and what we're hoping to see in Iraq. Many of the pumpers have used it as an example to aid in their push to sell the Iraqi Dinar, and many investors have believed them. It's apples and oranges, and should never be used to bolster confidence in the RV of the IQD.

[nointel]

It didnt

anyone who tries to tell you it did rv is full of you know what...

[Darin]

It didnt

Semper Fi

Funny - many people refer to KWD as a R/V when in reality it was a R/I (Re-instatement)

However, so many of us here use a slang term LOP which is used in a sense of R/D, when the correct term to use is R/D (Re-denomination)

Regardless, the value was brought back.. And the OP is asking how it went down.

[keepmwlknfny]

I think what the poster is trying to get at is what procedures happened in Kuwait that allowed their currency to rise back to its value, and how can we look at the situation and compare it to Kuwait course Keepm does not want an RV so I wouldn't ask him

Yea your right, I don't want an rv, I only bought dinar to stare at it whenever I got bored and to roll joints with since its cleaner then USD......

[Darin]

Yea your right, I don't want an rv, I only bought dinar to stare at it whenever I got bored and to roll joints with since its cleaner then USD......

cleaner than USD?? -- They refer to it as toilet paper....

Just make sure you only have uncirculated.

[Butifldrm]

Here's a little KWD history.

Kuwait - Dinar

History of Kuwait's Currency

"The first issue was the result of the promulgation of the Kuwaiti Currency Law in

accordance with the Amiri Decree No. (41) of 1960. This Law stipulated that the

Kuwaiti Dinar shall be the national monetary unit and established the Kuwaiti

Currency Board under the chairmanship of then Minister of Finance and

Economy, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, currently the Amir of Kuwait. Accordingly, on the first day of April 1961, the first issue was put into circulation, replacing the then circulating "Indian rupee". It was withdrawn from circulation effective February 1, 1982 and ceased to be a legal tender on May 31, 1982.

The Second issue followed the establishment of CBK in replacement of the Kuwaiti Currency Board, thus taking over the latter's function of issuing currency notes and coins in addition to much broader tasks. The second issue was put into circulation starting on November 17, 1970 for 1/4, 1/2, and 10 dinar notes and on April 20, 1971 for 1 and 5 dinar notes. The second issue was withdrawn effective February 1, 1982, and ceased to be a legal tender on May 31, 1982

Following the accession of H. H. Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, the third issue was put into circulation by CBK on February 20, 1980, in the denominations of KD 10, 5, 1, 1/2 and 1/4. On February 9, 1986, a 20 dinar note was put into circulation. Due to the exceptional circumstances ensuing from the Iraqi invasion of Kuwait in 1990, this third issue was withdrawn from circulation effective March 24, 1991, and ceased to be a legal tender after 45 days from that date. The right of exchanging these notes at

the CBK expired on Saturday, September 30, 1991.

Soon after liberation, the fourth issue was put into circulation on March 24, 1991, so as to allow for a speedy exchange of the withdrawn third issue and to ensure the country's swift economic recovery. The fourth issue was withdrawn from circulation on August 17, 1994 and ceased to be a legal tender effective February 16, 1995. These notes can still be exchanged at CBK until Monday, August 16, 2004.Soon after liberation, the fourth issue was put into circulation on March 24, 1991, so as to allow for a speedy exchange of the withdrawn third issue and to ensure the country's swift economic recovery. The fourth issue was withdrawn from circulation on August 17, 1994 and ceased to be a legal tender effective February 16, 1995. These notes can still be exchanged at CBK until Monday, August 16, 2004.

The Fifth Issue of the Kuwaiti Currency was placed into circulation effective Sunday, April 3, 1994. It is the current circulating currency of the State of Kuwait and utilizes high-level technology utilizing technical features and security developments realized by the Bank Note printing industry."

http://ezforex.wetpaint.com/page/Kuwait+-+Dinar

[FatMan]

Yea your right, I don't want an rv, I only bought dinar to stare at it whenever I got bored and to roll joints with since its cleaner then USD......

Haha Nice! I KNOW Mine is clean! Haha

Krem

[Gasketman]

And the price of the Kuwaiti Dinar was never nearly as low as the Iraqi Dinar. The cheapest it got was about $10,000.00 US Per Million. There are many countries that have RVed over the years where currency traders like George Sorros have made a killing. We will make $ on this investment eventually ( I already have on the Dinar I bought in 2004 ) But don't plan on retiring if you only hold a million or less.

[Junior1]

I believe that it didnt r.i. Right away, it took a few years to regain its original value

[skepticaldinar]

I think what the poster is trying to get at is what procedures happened in Kuwait that allowed their currency to rise back to its value, and how can we look at the situation and compare it to Kuwait course Keepm does not want an RV so I wouldn't ask him

If that is the question,then no comparisons are there between Iraq and Kuwait. The Kuwaiti Government was still in tact and the infastructure was still there.It took about 8 months for the well oiled money making machine of Kuwait to get right back on track with business as usual after the short lived invasion.

[Tom 777]

Can someone explain to me how the Kuwaiti currency RVd? What was the value before the RV and then what was the value after? Was it true, like the Iraqi Dinar, that things did not "appear" optimistic before the change happened? Any details would be great, tried looking online but didn't find too much of nothing.

Go to google and type in Kawait currency, push enter and then go from there. Even what you find there isn't the complete information for they change their currency a few times before going with what they have now. Each time they reprinted the money they would give you time to exchange but a lot of people lost everything if they weren't able to exchange. At one time it had dropped down over 700 dinars to the dollar but you can't find this information anywhere today but it was posted at one time. Hope this helps.

[wishwell11]

The KWD reinstatement has been discussed in detail dozens of times on this site. A search of the archives will reveal many excellent posts describing what occurred. Bottom line, as Keep aptly put it......there's is no comparison between what occurred in Kuwait and what we're hoping to see in Iraq. Many of the pumpers have used it as an example to aid in their push to sell the Iraqi Dinar, and many investors have believed them. It's apples and oranges, and should never be used to bolster confidence in the RV of the IQD.

I may stand corrected, but I believer there was not as much printed currency in circulation like Iraq has now and the instability duration for Kuwait was way shorter than Iraq. Kuwait resumed their economic stability and Iraq isn't resuming stability, they're creating it.

Wishwell11

[rkpdwp]

Go to google and type in Kawait currency, push enter and then go from there. Even what you find there isn't the complete information for they change their currency a few times before going with what they have now. Each time they reprinted the money they would give you time to exchange but a lot of people lost everything if they weren't able to exchange. At one time it had dropped down over 700 dinars to the dollar but you can't find this information anywhere today but it was posted at one time. Hope this helps.

the kwd went down to 10 cents per dinar, i was over there.

[jmw]

Go to google and type in Kawait currency, push enter and then go from there. Even what you find there isn't the complete information for they change their currency a few times before going with what they have now. Each time they reprinted the money they would give you time to exchange but a lot of people lost everything if they weren't able to exchange. At one time it had dropped down over 700 dinars to the dollar but you can't find this information anywhere today but it was posted at one time. Hope this helps.

You can't find it because it never got that low...at most about .10 per dinar....but this was a street value as the official exchange rate never changed. Kuwait also had to change currency due to Saddam stealing money from the central bank as well as the printing plates. They closed their borders to keep any of the stolen money from being exchanged. As many have stated...the situation is very very different...you would be better off looking at how much they have in circulation as well as what their GDP is...to get an idea of why their currency is so valuable.

[hunz]

You can't find it because it never got that low...at most about .10 per dinar....but this was a street value as the official exchange rate never changed. Kuwait also had to change currency due to Saddam stealing money from the central bank as well as the printing plates. They closed their borders to keep any of the stolen money from being exchanged. As many have stated...the situation is very very different...you would be better off looking at how much they have in circulation as well as what their GDP is...to get an idea of why their currency is so valuable.

So it seems it would have been impossible for anyone outside of Kuwait to profit from this at all.

[jmw]

So it seems it would have been impossible for anyone outside of Kuwait to profit from this at all.

Not impossible...but very difficult. They would have had to have contacts there or a bank account there....but if memory serves me correctly...they had 45 days to make the exchange.

[JoeB]

... how come I have heard stories about how the market reached as high as $7 at some point(s).

I hear stories every day that right now in Iraq they are cashing in at $5.25. Just ask Okie.

[kinglizzy99]

It would be nice to hear from someone that actually capitalized on the Kuwait situation. Barring he/she is willing to tell the truth and come out from underneath the veil of an avatar and alias, I can't think of one post (out of 1000s read) where I remember someone providing that insight. Before anyone wants to bash, I know the Kuwait situation was different!