History - the Kuwaiti Dinar's Rise

[Dinar Skeptic]

I know this is about the Iraqi Dinar, but a good precedent will encourage and enlighten many of us. Just 14 years ago, Kuwait was in a similar situation (war, cheap value of currency, etc.) so I believe we can draw from the history of Kuwait's Dinar to draw our own conclusions about the New Iraqi Dinar.

However, I need some background information on the Kuwaiti Dinar's rise after the first Persian Gulf Conflict in 1991. I've searched and searched, but nothing goes back that far. I know weblogs and the extent of the internet was not as prevalent as it is now, and no less in the Middle East, so I've had a hard time finding any hard news on the KD back then.

I heard (and this is not confirmed) that the KD (Kuwaiti Dinar) just recently reached the pre-war level of about $3.30 USD to 1 KD. Just last year. Doing a little math, that took about 13 years.

What I want to know is:

1. What was the lowest value of the KD after the invasion of Iraq into Kuwait?

2. How long did it take to rise?

3. Was it a sudden jump, or did it float gradually upwards?

4. What were the events the preceded any possible "peg"?

We all know it was worth dirt when Kuwait was invaded, then rose and is now the highest valued currency on earth! And of course, Kuwait had an economy before, no insurgency, a working government, infra-structure, etc.

But what was the rise like for the KD?


Dinar Skeptic

[MunnyBaggs]

Here your answers can be found:

http://www.fxcm.com/fxcm-home.jsp;js...d=FIMJBGNKCDND
http://exchangerate.com/
http://www.xe.com/

And there's one more used by several members of this Forum. Hopefully we can add to this list.

[JeffP]

Read this please for what actually happened with the KWD , I did much research on this subject :D

http://www.investorsiraq.com/showthr...0064#post40064

JeffP

[jeanal]

What about Afghanistan? Is it possible their may be some history there?

[CaddieMan]

The lowest KD got was .10 to the USD and it was a slow rise with a government in place and no insurgents

[SoFla]

What about Afghanistan? Is it possible their may be some history there?

I wrote this earlier...

If you look at Afghanistan's value prior to their re-evaluation,Wednesday, January 1, 2003 1 Afghanistan Afghani = 0.0002116 US Dollar
1 US Dollar (USD) = 4,726.25 Afghanistan Afghani (AFA)
and then the next day Thursday, January 2, 2003 1 Afghanistan Afghani = 0.02337 US Dollar
1 US Dollar (USD) = 42.78500 Afghanistan Afghani (AFA)

Those individuals that invested had also made a small fortune!
Of course, the Afghani is not traded on the Forex and therefore not recognized as an international currency (that I know of), it is pegged to the US Dollar.
Afganistan is a very poor country.

The Iraq situation is much different, there is every reason for the Iraqi Dinar to peg much higher and soon. I as many of you agree that a peg on or before the 16th would be fantastic, IMHO I honestly do not think that there can be a peg prior to an approved constitution by the people of Iraq (Oct 15th 2005).

[RogerL]

Please do not include the Afghani as one of those miracle currencies. At one point, the currency was replaced, lopping off a couple of zeroes all in one day so there hasn't been a huge increase in that currency as there had been with the Kuwaiti dinar.