New Laws of Commercial Registration and Trade Names take effect on Thursday    Civil Defense warns of heavy rains across Saudi Arabia until Monday    Saudi Exchange suspends trading of seven companies over financial disclosure delays    New fleet of 76 public transport buses starts operation in Jeddah on Tuesday Environmentally friendly electric buses introduced for first time    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    EU preparing 'further countermeasures' to protect its interest, von der Leyen says    Tesla sales plunge after backlash against Elon Musk    Musk's X is suing India, as Tesla and Starlink plan entry    Israel announces expansion of military operation in Gaza to seize 'large areas' of land    US cancels visa of Nobel Peace Prize winner Oscar Arias    Danish prime minister refutes US claim on Greenland on visit to the Arctic territory    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Cristiano Ronaldo joins Fatal Fury: City of the Wolves    Saudi Arabia welcomes trilateral border treaty between Tajikistan, Kyrgyzstan, and Uzbekistan    Swedish table tennis legend Jörgen Persson appointed head coach of Saudi national team    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Kuwait Revalues Dinar 0.78% against Dollar
Agencies
Published in The Saudi Gazette on 15 - 03 - 2008

Kuwait's central bank Thursday raised the value of the dinar by 0.78 percent against the flagging dollar after the US currency hit a new record low against the euro.
The dollar, which closed Wednesday at 0.27120 dinars, is now worth 0.26910 dinars, as the euro rose as high as $1.5625 on Thursday, while the US currency dropped below the key 100 yen for the first time in 12 years.
It was the second largest raise since the dinar was de-pegged from the dollar in May last year. In July, the dinar rose 1.75 percent against the dollar.
Last May o Kuwait became the first Gulf Arab state to peg its dinar to a basket of currencies after more than four years of linking it to the dollar, in a bid to reduce inflation.
Since then, the dinar has gained 6.93 percent against the dollar and is trading at a 20-year high.
But the inflation rate has kept rising despite the measure. According to the latest central bank figures inflation hit a 15-year high of 7.3 percent at the end of September.
Kuwait let its dinar rise against the dollar by the biggest margin in almost eight months on Thursday, taking its cumulative gain above 7 percent for the first time since dropping its peg in May to the falling US currency.
The dinar, the currency of the only Gulf Arab oil producer to drop its peg, will trade 0.78 percent higher around a mid-point of 0.26910 against the dollar, compared with 0.27120 on Wednesday, the central bank said.
That is the biggest jump since July 25 when the central bank allowed the dinar to rise 1.74 percent, and brings its cumulative gain to 7.45 percent.
The dollar hit a record low against the euro and a 12-year low against the yen on Thursday, and shares fell as euphoria subsided about the latest helping-hand from the US Federal Reserve and reality – $110 oil and recession fears – returned.
“The large move maintains the real value of the dinar and underscores the advantages of Kuwait's more flexible currency regime,” said Simon Williams, Middle East economist at HSBC Holdings Plc in Dubai.
“Fixed pegs don't bring currency stability, they leave a currency fully exposed to the volatility of the dollar,” Williams said.
The Fed's attempt to ease credit market strains by offering to accept mortgage bonds as collateral had sparked the biggest daily gains for five years on the Dow Jones industrial average and Nasdaq on Tuesday, but nagging worries about the state of the US economy overcame that initial optimism.
In Germany, Qatar's central bank governor said the oil and gas producer will keep its riyal pegged to the dollar at the same rate for now as it grapples with near-record inflation and expectations of imminent currency reform.
The Qatar riyal hit its highest in more than three months on Wednesday after Zawya Dow Jones reported the Gulf state may revalue its currency or drop its dollar peg next month, citing an unidentified Qatari central bank official.
Like its neighbors in the world's biggest oil-exporting region, Qatar is constrained in its fight against inflation by the peg, which forces it to cut interest rates in line with the US Federal Reserve, which is trying to ward off recession.
In contrast, Gulf economies are surging on a five-fold rise in oil prices since 2002. The falling dollar is contributing to about 40 percent of inflation in Qatar, whose currency is undervalued by as much as 30 percent, Qatar's Prime Minister said last month. __


Clic here to read the story from its source.