US dollar slumps to lowest value against Kuwaiti dinar since 2008

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US dollar slumps to lowest value against Kuwaiti dinar since 2008

Economics 9/1/2011 4:56:00 PM

By Mahmoud Bushehri Kuwait, Sept 1 (KUNA) -- The US greenback continues its retreat against Kuwaiti dinar to stand at KD 0.271, its lowest value since 2008 and its second lowest over 27 years, the Central Bank of Kuwait has said in a report issued on its website.

The exchange rate of US dollar against Kuwaiti dinar was fluctuating over the past three years because of the economic and financial crises which started with the mortgage crisis in the United States to be followed by a global financial crisis in 2008.

The average exchange rate of US dollar against Kuwait dinar in 2009 amounted to 0.287 dinars, up 7 percent from a year earlier, but it took a downward trend in 2010 to reach 0.286 dinars.

But in 2011, dollar's exchange rate fell against the dinar by about 5 percent to about 0.271 dinars, according to the Central Bank of Kuwait data.

The main cause for this decline was the world economies' slow recovery of the financial crisis and the US and eurozone debt crises.

Kuwait abandoned pegging its currency to the US dollar in May 2007, replacing it with a basket of currencies due to the negative impact of the drop of US dollar on Kuwait economy over more than two years.

The fall of the exchange rate of the US dollar has contributed to local inflation at that time.(end) mb.ibi KUNA 011656 Sep 11NNNN

http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2187896&Language=en