Kuwaiti Dinar: The strongest currency in the world
Can you buy the same number of chocolates for 100 rupees and 100 dollars? The answer is no. But why? Because their values aren’t the same. Different countries use different currencies. For example, you use the rupee to pay your bills in India; in the US, you would use the dollar, euro in Europe, pound in the UK and yen in Japan.
Now, knowing this, we are sure you would want to have the currency which can buy you the most number of chocolates. Well, it’s the Kuwaiti Dinar or KWD. It is the strongest or the most expensive currency with which you can buy most things you want to.
How much is a KWD worth today?
One KWD is equal to almost 260 rupees today while a dollar is close to 80 rupees and a euro is close to 82 rupees. Other strong currencies with high trading values in the world are Bahraini Dinar (equals 211 rupees) and Omani Rial (equals 207 rupees). The earnings of both these countries are heavily reliant on oil which is much valued in other parts of the world.
What makes Kuwaiti Dinar so powerful?
For many years, the title of most powerful currency has been retained by the Kuwaiti dinar, the currency of Kuwait. Yes, KWD is more powerful than the US dollar, British Pounds, and the Euro. You must be wondering what makes a currency belonging to such a small country earn such a special status.
Well, Kuwait is indeed a small country that is nestled between Iraq and Saudi Arabia in the Mideast. But, the strength of a currency is determined by its demand in the international market. There are many factors that make KWD a currency in high demand. Number one, Kuwait is a major exporter of oil in the world. While most countries rely on Kuwait for their oil needs, they need the Dinar to purchase oil which drives up the exchange rate.
Two, being a tax-free country, Kuwait’s oil industry accounts for a large part of government revenue. Kuwait profits from pegging its exchange rate at a high level since its exports are much more valuable than its imports.
Three, unlike Nigeria and some African countries where the sale of oil is a disaster, revenue from sales of oil in Kuwait is used by the country to build infrastructure, develop microeconomic sectors to grow its economy.
Origin of the Kuwaiti Dinar
The Kuwaiti dinar was introduced in 1960 after the country got independence from the British rule. KWD is divided into 1,000 fills— a coin that is used in many Arab countries.