The Kuwaiti dinar's exchange rate is pegged to the U.S. dollar and has remained stable throughout the last few decades. The International Monetary Fund (IMF) has praised the Central Bank of Kuwait, established in 1959, for its successful policies in keeping the Kuwaiti currency stable. One dinar roughly equals 3 dollars.
Kuwait is one of the few major capital-exporting countries, that is, the state has more income at its disposal than it spends, and this surplus money is invested overseas or lent to the international banking sector. The Kuwait Investment Authority (KIA) controls 2 portfolios, the Reserve Fund for Future Generations and the State
|Exchange rates: Kuwait|
|Kuwaiti dinars (KD) per US$1|
|SOURCE: CIA World Factbook 2001 [ONLINE].|
General Reserve Fund. The combined value of these funds is estimated at between US$60billion and US$90 billion; although impressive, these figures are well below the pre-1990 Gulf War peak of US$117 billion. KIA's investments include bonds and international stocks listed on the New York and London stock exchanges, as well as real estate property, in Europe and North America. The (official) Kuwait Stock Exchange is small and is characterized by intensive trading, of only a limited number of stocks, among local investors.