
Kuwaiti Dinar: The national currency of the State of Kuwait.
Key takeaways
- The Kuwaiti dinar is the national currency of the State of Kuwait.
- The Central Bank of Kuwait is responsible for the issue, circulation, and regulation of the Kuwaiti dinar.
- The Kuwaiti dinar was introduced as an official currency on April 1, 1961.

Image source: Corporate Finance Institute
What is the Kuwaiti Dinar?
The Kuwaiti dinar (KWD) is the official currency of the State of Kuwait, a country located in the Middle East on the northeastern edge of the Arabian Peninsula. It is abbreviated as KWD and is often represented by the symbol “د.ك” or “KD” in Arabic.
The Kuwaiti dinar is one of the highest-valued currencies in the world, and it is known for its strong and stable exchange rate. It is subdivided into 1,000 smaller units called fils. Banknotes and coins are issued in various denominations, with banknotes being more commonly used for everyday transactions.
Kuwait has a well-developed modern banking and financial system, and the Kuwaiti dinar is widely accepted for international trade and investment. The currency’s high value is largely due to Kuwait’s significant oil reserves and its relatively small population, which has allowed the country to accumulate substantial wealth from oil exports.
The Central Bank of Kuwait is responsible for issuing and regulating the Kuwaiti dinar, ensuring its stability in the global financial market. The exchange rate of the Kuwaiti dinar is typically pegged to a basket of major international currencies, which helps maintain its value and stability in the foreign exchange market.
History of the Kuwaiti Dinar
Before the Kuwaiti dinar was established as the official currency, various currencies were used in the region, including the Indian rupee, the Maria Theresa thaler, and the Ottoman lira. These were used in trade and commerce.
The Kuwaiti dinar was introduced as the official currency of Kuwait on April 1, 1961, following its declaration of independence from the United Kingdom. The Kuwaiti dinar replaced the Gulf rupee at a rate of 13.33 rupees to 1 dinar.
Upon its introduction, the Kuwaiti dinar was pegged to the British pound sterling. However, in 1975, Kuwait switched its peg to a basket of major international currencies, including the U.S. dollar, British pound, Japanese yen, and others. This move was made to diversify its currency’s stability.
In 1990, Kuwait was invaded by Iraq, leading to a period of occupation. During this time, the Kuwaiti dinar was temporarily replaced by the Iraqi dinar. However, after the liberation of Kuwait in 1991, the Kuwaiti dinar was reinstated as the official currency.
Throughout its history, the Kuwaiti dinar has played a crucial role in Kuwait’s economic development, and its stability has made it a reliable currency for international trade and investment in the region. The Central Bank of Kuwait continues to oversee its issuance and manage its exchange rate to maintain its strength and stability in the global financial system.
Current Kuwaiti Dinar Notes
- ¼ Dinar
- ½ Dinar
- 1 Dinar
- 5 Dinars
- 10 Dinars
- 20 Dinars
Although not very common, coins are also in circulation and they are issued as 5 fils, 10 fils, 20 fils, 50 fils, and 100 fils.
Some Facts About The Kuwaiti Dinar
- The Kuwaiti dinar is one of the highest-valued currencies in the world. Its high value is primarily attributed to Kuwait’s significant oil reserves and its relatively small population.
- Kuwait has maintained a stable exchange rate for its dinar for many years. It is pegged to a basket of major international currencies, which helps ensure its stability in the global foreign exchange market.
- While banknotes are more commonly used for everyday transactions, Kuwait also has coins in circulation. These coins are denominated in fils, with coins available in various values such as 5, 10, 20, 50, and 100 fils.
- Kuwaiti dinar banknotes are known for their advanced security features to deter counterfeiting. Some of these features include watermarks, security threads, holograms, and intricate designs.
- The banknotes of Kuwait often feature portraits of important historical and political figures from the country’s history, such as past rulers and leaders who have contributed to Kuwait’s development.
- The reverse sides of the banknotes often showcase various aspects of Kuwait’s culture, heritage, and achievements, including scenes related to education, industry, wildlife, and more.
- The Kuwaiti dinar was introduced as the official currency of Kuwait on April 1, 1961, coinciding with the country’s declaration of independence from British protectorate status.
- Its value is closely tied to the country’s oil industry. Kuwait has one of the world’s largest proven oil reserves per capita, making oil exports a significant source of income for the nation.
- It is widely recognized and accepted for international trade and investment. It is often used in the oil industry and is considered a reliable currency in the Middle East and beyond.
Conclusion
The Kuwaiti dinar is a high-value and stable currency with a rich history tied to Kuwait’s oil wealth and economic development. It is known for its strong exchange rate, advanced security features, and representation of historical figures and cultural aspects on its banknotes. The Kuwaiti dinar plays a vital role in the country’s economy and enjoys global recognition in international trade and finance.
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Simple and educative. Thank you Ope.
Thank you. I’d like for you to explain how the “sell unit” option on Cowrywise works
Hello Ega, when you invest in a mutual fund you buy slices of the fund (units). When you sell units, it means you are taking your money out of the fund.
It is the option you use to withdraw from a mutual fund.
Great innovation from Ope;Cowrywise,just pray it works out well.
Nice educative piece.
Hi, hum how long does it take to get my money back when I sell my units
Is this related to buying shares in firms while cowrywise is the stockbroker?
No please.
Thank you Ọpẹ. This is really simple and enlightening. The pizza analogy made me understand the intricacies of mutual funds.
A very good investment idea.
Like a previous question, how long does it take to get my money back after selling my unit?
Thanks Ope
Everyday I go to my dash board to see how my funds are growing. happy and greatfull to this platform and the decision I took. More investment!!!
Hi Adetoun and Racheal, it takes about one working day to get your funds back.
What a nice write up.
Please keep the flag flying.
You guy are doing a great job.
Thanks
If by chance ah can’t sell the unit expected yet ensure dat my deposit is automatically withdrawn every day what the risk involve there?
I am sold to this idea already. Well done.
Thank you
That’s very explain Tory and educating as well but being a newbie in investment market,
1. Is mutual fund as flexible as T-bill, if the rates on a particular investment increase in a country’s stock market will ROI on the investment mutually increase across board..
2. What’s the duration on mutual fund, it’s it annually or your company’s has a fixed duration before one’s unit can be recoverd, need more clarification on that .
Hello, when a share unit is sold, is the investor still available to receiving dividends?
That depends on the fund type.
Good write up. I know little more than the words. My questions are 1.what’s the tenure of the investment?
2. What’s the interest rate?
3. Can I terminate the investment anytime?
Hello ope, thank you for the explanation.
Does this mean that money can not be lost on mutual funds due to market change?
For money market mutual funds, yes.
Thank you Ope
Pls explain the ‘sell unit’ in Cowrywise and how it works. Thanks.
If you want to withdraw from your mutual fund, selling the units helps you do that.
Can I continue to save in my mutual funds without buying units can it run in auto pilot?
Thanks ope
My question is what is duration time can I terminate my investment , what is the percent interest rate on investment and what is tenure of investment..
The duration is a personal choice you have to make. I play for the long term though.
Thanks Ope dear!
Good write up. My questions are: if I invest 100k, what’s my interest rate? Secondly, if there is an interest rate, how often does it flow into what I have invested? And lastly, how long is the tenure?
Hi there, this depends on the mutual fund you choose. Have you checked them out.
Thank you Ope for the briefing on Mutual funds.
You’re welcome
Thank you Ope, i’ve been to trying to understand this for a long while now i have it like a box of pizza
Sir,
If invest in money market fund,what will be my expected interest?
This is really interesting,I always had a thing for mutual funding but I couldn’t get any better explanation than this,I once had an account with cowrywise but I lost the phone and eventually forgot the password,guess i would have to create one for this
If cowrywise are inactive on NSE, will it affect my investment with them and why are some stockbrokers that were active now inactive?
Very good explanation. Have been saving with cowrywise for some time it has been going I think I will now switch to the investment colum. Thank guys
Many of the questions on my mind have been answered.
Thanks, Ope for the simple explanation.
I’m definitely going to start one today!
Good explanation
Thanks for reading, Adewale
Very Interesting,
My questions now are
1.what’s the tenure of the investment?
2. What’s the interest rate?
3. Can I terminate the investment anytime?
What are the chances of losing money on this platform. Please I need a very clear and understanding response.
Good morning Ope.
Hi Odeniyi.
You don’t lose money with any of our Savings Plans.
For Mutual Fund investments on Cowrywise, there are different ways to earn.
I’ll recommend you begin investing in Money Market Funds as those are low-risk funds.
Thanks federal government for helping us
Thanks … I’ll like to know how possible is it that I’ll earn with out the fund managers selling my units in this platform.
Thanks
Hi Solace.
If you would rather not sell your units, you may also earn through dividends which are paid periodically, depending on which fund you’ve purchased on the platform.
Please let me know if you need any more clarification.
I have alot of questions to ask but just want to ask with these few…
1.what does the sell unit stand for?
2.is it the investor that gets to choose how long the investment would stay….
What’s the minimum amount to start with investing
Hi Ope, Saving on cowrywise has helped me but now I Intend to invest in mutual funds. If I no longer want the funds, can I sell them on cowrywise?
If yes, how long will it take to sell and get my investment back?
Very good write up…. thank you for the information
You’re welcome
So how would I see my profit….
Please I need more information about the dollar mutual funds on cowrywise, the difference between both and which to invest in(talking about Nigeria eurobonds and arm eurobonds)
Please I need more information about the dollar mutual funds on cowrywise, the difference between both and which to invest in(talking about Nigeria eurobonds and arm eurobonds)
Hello Ope, you said “Distribution in this case, would mean waiting on the fund manager to deduct the ₦100,000 gained and pay it to you without selling your units.” does this mean you still have your ₦200,000 phone [which you can still sell and gain another ₦100,000 which still enjoying your ₦100,000 gained from your fund manager?
A
Thank you for this insightful piece.
In case of appreciation of the fund, what would the fund manager do, since I am not monitoring the market fund? Since I don’t want to withdraw yet, what happens next to the fund and the gain, will the fund manager automatically increase my fund with the gain or will he send it to my account?
Thanks for the information, please how do I redeem my mutual fund?I invested in money market fund on the 7 of February,I requested to withdraw from my money but it’s saying I haven’t redeemed my mutual fund
Thanks Ope for this education.
Please, is mutual fund the same as index fund? If no, do we have in index fund in Nigeria?
Thank you again
How long does it take to get your money back after selling your units?
And, what happens if you only sold a certain percentage of it, not 100% of the units?
Very educative Ope, thanks. I hope we can get on clubhouse someday, so much opportunity there
How long does it take to sell your unit
Please Ope I need more clarification on this money market mutual fund. If I invest #5000 this month and continue same in other months just like savings do I still stand a chance of getting gains. Please explain more
How do I sell on mutual investment fund?
Please do I need to invest every day or just once. And too I needed to know more about investing. Finally don’t you have agricultural products investments?
Educative and insightful.
Hello Ope, it was quite insightful.
My question is under *capital appreciation, at what point would the fund manager distribute the gains if I decide not to sell my units, as there an agreed period like in the case of *periodic distribution. Is it going to be at the fund manager discretion?
I
Thanks
Thank you for always simplifying your write up, it’s very informative and educative.
I really want to invest but I kinda still need more explanations, maybe in an ABC way.
And I want to know which investment to go for. Thank you.