Iraq and the Saudi Arabia surround this small country perched on the coast of the Persian Gulf. Kuwait is a powerhouse for oil export and financial services. It is a rapidly growing economy. Its coinage is in dinars. It appears as KWD on the money markets with 1000 fils equal to 1 dinar.
History
Since about the 3rd century Greek silver coins made their way into Kuwait. The country also saw the importing of Islamic coins in the 8th century. Trade with India also had an influence on the currency. The biggest influence of these early centuries, however, a result of the problems between Iran and Iraq in 1776. The Iranian port of Basra was seized by Iraq. This caused a diversion of trade through Kuwait. As India was a major player, many Indian traders chose to settle in Kuwait. They introduced their own monetary system of silver rupees and copper paisa. By the end of the century, Kuwait had many different currencies floating around, including Indian, Iranian and Ottoman coins. There were even Austrian silver dollars in circulation.
In 1886-1887, the then local governor, Sheikh Abduallah al-Sabah II began to issue copper paisos. They bore Arabic inscriptions, ornamental patterns and the Sheik’s name as well as the mint and the dat. This did not set well with the Ottoman rulers. The coinage breached the currency rules. The Ottoman ruler ordered him to withdraw the currency. Kuwait and the Sheik refused to buckle under. They opted for British protection instead. Nevertheless, there were no locally mined coins until 1961.
In 1961, Kuwait chose to adopt the system of 1,000-fils equal 1 dinar. They featured an Arab ship on the coins but inscriptions in both English and Arabic. The Iraqi invasion of 1990 and the following Gulf War saw the use of the Iraqi dinar. Afterwards, the system has returned to its previous system. Today, coinage includes denominations of 5, 10, 20, 50, 100 fils. Banknotes come in ¼, ½, 1, 5, 10, 20 dinars.
Obtaining Kuwaiti Dinars
There are many ways of exchanging your money, theoretically. There are banks, exchange houses and ATMs. The problems are fees. The commissions charged by the banks are very high. Moneychangers may balk at exchanging some forms of money. As a result, ATMS may actually be your best bet. They are everywhere, in markets, outside banks, in stores, and quite user friendly. It is still best, however, to check the rates and types accessible in the country.
Protecting Your Currency
Crime is not a problem in Kuwait. You need to implement the usual precautions regarding safekeeping of your valuables. Do try to avoid non-residential sections after dark.
Using Your Kuwaiti Dinars
There are many ways to use your Kuwaiti money. Try your hand at shopping for Persian carpets, at a carpet shop in an old souk. Buy gold in Kuwait’s large Gold Souk. You can purchase glass perfume bottles. Head off to the open-air Mabarakia Souk or go to the Sharq. There are many ways to spend your money. These can range from groceries and meals to traditional costumes, clothing, carpets and even electronics. In fact, Kuwait is very popular for those addicts of the shopping culture. To celebrate all things shopping, there is the annual Hala February Shopping Festival.
Travel Tips and Warnings
- The country is a safe place to visit in most ways. Do be careful in some rural regions, picnic spots and beaches. There are still unexploded munitions left from the Gulf War.
- Do visit any of the old souks to experience shopping as it should be.
- Plan to see the Kuwait Zoo and the Kuwait Tower.
- Wander through the old city gates and see the Khalifah Mosque.
- Do not forget the National Museum or the Tareq Rajab Museum.
- There is also the Grand Mosque.
- Go to at least one of the islands. This includes Green Island and Failaka Island.
Overview
Kuwait
is a prominent country in the Middle East. It is well known for its
financial services and its oil reserves. With a growing economy, Kuwait
continues to attract financial services and tourists.
For factual information and data, go to www.kuwait-info.com.
Currency Summary
Current currency: dinar
1,000 fils equal 1 dinar
Coins: 5, 10, 20, 50, 100 fils
Banknotes: ¼, ½, 1, 5, 10, 20 dinars