Thread: Iraq/Dinar News. 09/05 to 01/14/07

Does anyone know what ever happened to Article i belive it was 7 ....No one talks about it anymore? The one everyone was so excited about ...that was a week ago?

Does anyone know what ever happened to Article i belive it was 7 ....No one talks about it anymore? The one everyone was so excited about ...that was a week ago?

IT WAS ARTICLE 8 and it has 6 weeks for it to be implemented and they signed it on 10/31

IT WAS ARTICLE 8 and it has 6 weeks for it to be implemented and they signed it on 10/31

Originally Posted by MrsCK

IT WAS ARTICLE 8 and it has 6 weeks for it to be implemented and they signed it on 10/31

i must have missed that ....

Originally Posted by MrsCK

IT WAS ARTICLE 8 and it has 6 weeks for it to be implemented and they signed it on 10/31

i must have missed that ....

Not sure where to post this Neno, move it please if in wrong place.

Just posting this because people were curious about the Kuwaiti Dinar and the date it r/v'd

CBK's policy for the Kuwaiti Dinar (KD) exchange rate aims at enhancing the relative stability of the KD against other currencies especially the US Dollar, and shields the domestic economy against the effects of imported inflation. This reflects the importance of the exchange rate policy in the Kuwaiti economy where there are no restrictions on the movement of funds. From March 18, 1975 to the end of year 2002, the CBK followed an exchange rate policy of pegging the KD to a the weighted currency basket. That policy based the determination of the KD exchange rate on a especially weighted basket of currencies of the countries that have significant trade and financial relations with the State of Kuwait. It had proved its effectiveness in achieving a high degree of relative stability in the KD exchange rate against major world currencies. Starting from the beginning of year 2003, the KD has been pegged to the US Dollar, in accordance with the Decree No. 266/2002 that stipulates pegging the KD exchange rate to the US Dollar within margins around a parity rate as of the beginning of the year 2003. H.E. Sheikh Salem Abdulaziz Al-Sabah, the Governor, has announced the parity rate of the KD exchange rate against the US Dollar for the first day of business in January 2003 corresponding to Sunday 5 January 2003. This rate is set at 299.63 fils per dollar with margins of ±3.5%. Therefore, the KD exchange rate against the US Dollar after the 5th of January 2003 shall not exceed 310.11 fils/dollar and shall not fall below 289.14 fils/dollar. This parity rate was determined by the same principles and considerations used historically by CBK to determine the KD exchange rate under the previous system of the currency basket to ensure a smooth change from the currency basket peg to the dollar peg within margins. Therefore, the margins that were set around the parity rate were to ensure adequate relative flexibility for the KD exchange rate that would facilitate its overall stability against world currencies, while taking into consideration the characteristics of the Kuwaiti economy and its trade and financial relations with the outside world. It would also help absorb the occasional sharp fluctuations in the exchange rates of major currencies in world markets.

A- Money Supply:
During the fiscal year 2003/04, Money Supply in its broad definition (M2) recorded a marked growth of KD 1420.5 million or 14.6% to KD 11183.2 million at end of the mentioned fiscal year, against KD 9762.7 million at end of the fiscal year 2002/03. This increase resulted from the rise in both Money (the narrow definition of money supply M1) by KD 807.3 million or 34.6% (from KD 2331.3 million to KD 3138.6 million), and Quasi money by KD 613.2 million or 8.3% (from KD 7431.4 million to KD 8044.6 million).
Regarding factors affecting changes in money supply within the aggregate monetary position of CBK and local banks(*) during the fiscal year 2003/04, the above rise in Money Supply (M2) was the outcome of the increase in net domestic assets of these institutions by KD 1470.8 million (20.5%) on the one hand, and the decline in their net foreign assets by KD 50.3 million (1.9%) on the other. The mentioned increase in net domestic assets reflects the outcome of the rise in local banks’ claims on the private sector by KD 1834 million or 22.5%, and other net claims of CBK and local banks by KD 297 million or 8.7% on the one hand, and the decline in both the local banks’ claims on the government by KD 100.8 million or 3.2%, and the government accounts with CBK and deposits with local banks by KD 34.6 million or 4.7%, on the other. As for the mentioned decrease in net foreign assets, it was essentially the outcome of the decline in CBK’s net foreign assets by KD 278.7 million or 12.7% on the one hand, and the rise in net foreign assets of local banks by KD 228.4 million or 56.9% on the other.

The KD Exchange Rate:
CBK started on 5 January 2003 the application of a new KD exchange rate policy, by virtue of the Decree No. 266 of 2002, issued on 5 October 2002. According to this policy, the exchange rate of the Kuwaiti dinar has been pegged to the US dollar within a margin not exceeding 3.5% on both sides of the parity exchange rate of the Kuwaiti dinar against the US dollar, set by CBK at 299.63 fils/dollar. The application of this new policy was in response to the decision taken by the leaders of the GCC member countries during the meetings of the 22nd Session of the GCC Supreme Council on 31 December 2001 in Muscat, Sultanate of Oman, with regard to completing the common pegging of the member States’ currencies against the US dollar, as a step toward fulfilling the requirements for the establishment of the GCC monetary union and the launching of the GCC single currency in year 2010.
Available data on the developments of the KD exchange rate during the fiscal year 2003/04 indicate that it maintained its manifest relative stability against the other major currencies, under the new Kuwaiti dinar exchange rate policy, applied as of the beginning of 2003, which is based on pegging the exchange rate of the Kuwaiti dinar against the US dollar within specific margins (±3.5%) around the parity exchange rate of the Kuwaiti dinar against the US dollar, set at 299.63 fils/dollar. During the mentioned fiscal year, the difference between the highest and lowest exchange rates of the US dollar against the Kuwaiti dinar did not exceed 6.77 fils (300.64 fils and 293.87 fils) or 2.3%. Furthermore, the difference between the highest exchange rate of the US dollar against the KD, and the parity rate (299.63 fils/dollar), reached one fils (0.3%) during the mentioned fiscal year. Meanwhile, the difference between the lowest exchange rate of the US dollar against the KD, and the parity rate, reached 5.76 fils (1.9%). The exchange rate of the US dollar against other major currencies witnessed more pronounced fluctuations during that period, whereby the difference between the highest and lowest exchange rates of the US dollar reached 22.7% against the Sterling pound, 20.8% against the Euro, 16.5% against the Swiss franc, and 14.6% against the Japanese yen.

For further info see link below:
Central Bank of Kuwait

Maybe the CBK link can give us something to go on?

Cheers!
DayDream

Not sure where to post this Neno, move it please if in wrong place.

Just posting this because people were curious about the Kuwaiti Dinar and the date it r/v'd

CBK's policy for the Kuwaiti Dinar (KD) exchange rate aims at enhancing the relative stability of the KD against other currencies especially the US Dollar, and shields the domestic economy against the effects of imported inflation. This reflects the importance of the exchange rate policy in the Kuwaiti economy where there are no restrictions on the movement of funds. From March 18, 1975 to the end of year 2002, the CBK followed an exchange rate policy of pegging the KD to a the weighted currency basket. That policy based the determination of the KD exchange rate on a especially weighted basket of currencies of the countries that have significant trade and financial relations with the State of Kuwait. It had proved its effectiveness in achieving a high degree of relative stability in the KD exchange rate against major world currencies. Starting from the beginning of year 2003, the KD has been pegged to the US Dollar, in accordance with the Decree No. 266/2002 that stipulates pegging the KD exchange rate to the US Dollar within margins around a parity rate as of the beginning of the year 2003. H.E. Sheikh Salem Abdulaziz Al-Sabah, the Governor, has announced the parity rate of the KD exchange rate against the US Dollar for the first day of business in January 2003 corresponding to Sunday 5 January 2003. This rate is set at 299.63 fils per dollar with margins of ±3.5%. Therefore, the KD exchange rate against the US Dollar after the 5th of January 2003 shall not exceed 310.11 fils/dollar and shall not fall below 289.14 fils/dollar. This parity rate was determined by the same principles and considerations used historically by CBK to determine the KD exchange rate under the previous system of the currency basket to ensure a smooth change from the currency basket peg to the dollar peg within margins. Therefore, the margins that were set around the parity rate were to ensure adequate relative flexibility for the KD exchange rate that would facilitate its overall stability against world currencies, while taking into consideration the characteristics of the Kuwaiti economy and its trade and financial relations with the outside world. It would also help absorb the occasional sharp fluctuations in the exchange rates of major currencies in world markets.

A- Money Supply:
During the fiscal year 2003/04, Money Supply in its broad definition (M2) recorded a marked growth of KD 1420.5 million or 14.6% to KD 11183.2 million at end of the mentioned fiscal year, against KD 9762.7 million at end of the fiscal year 2002/03. This increase resulted from the rise in both Money (the narrow definition of money supply M1) by KD 807.3 million or 34.6% (from KD 2331.3 million to KD 3138.6 million), and Quasi money by KD 613.2 million or 8.3% (from KD 7431.4 million to KD 8044.6 million).
Regarding factors affecting changes in money supply within the aggregate monetary position of CBK and local banks(*) during the fiscal year 2003/04, the above rise in Money Supply (M2) was the outcome of the increase in net domestic assets of these institutions by KD 1470.8 million (20.5%) on the one hand, and the decline in their net foreign assets by KD 50.3 million (1.9%) on the other. The mentioned increase in net domestic assets reflects the outcome of the rise in local banks’ claims on the private sector by KD 1834 million or 22.5%, and other net claims of CBK and local banks by KD 297 million or 8.7% on the one hand, and the decline in both the local banks’ claims on the government by KD 100.8 million or 3.2%, and the government accounts with CBK and deposits with local banks by KD 34.6 million or 4.7%, on the other. As for the mentioned decrease in net foreign assets, it was essentially the outcome of the decline in CBK’s net foreign assets by KD 278.7 million or 12.7% on the one hand, and the rise in net foreign assets of local banks by KD 228.4 million or 56.9% on the other.

The KD Exchange Rate:
CBK started on 5 January 2003 the application of a new KD exchange rate policy, by virtue of the Decree No. 266 of 2002, issued on 5 October 2002. According to this policy, the exchange rate of the Kuwaiti dinar has been pegged to the US dollar within a margin not exceeding 3.5% on both sides of the parity exchange rate of the Kuwaiti dinar against the US dollar, set by CBK at 299.63 fils/dollar. The application of this new policy was in response to the decision taken by the leaders of the GCC member countries during the meetings of the 22nd Session of the GCC Supreme Council on 31 December 2001 in Muscat, Sultanate of Oman, with regard to completing the common pegging of the member States’ currencies against the US dollar, as a step toward fulfilling the requirements for the establishment of the GCC monetary union and the launching of the GCC single currency in year 2010.
Available data on the developments of the KD exchange rate during the fiscal year 2003/04 indicate that it maintained its manifest relative stability against the other major currencies, under the new Kuwaiti dinar exchange rate policy, applied as of the beginning of 2003, which is based on pegging the exchange rate of the Kuwaiti dinar against the US dollar within specific margins (±3.5%) around the parity exchange rate of the Kuwaiti dinar against the US dollar, set at 299.63 fils/dollar. During the mentioned fiscal year, the difference between the highest and lowest exchange rates of the US dollar against the Kuwaiti dinar did not exceed 6.77 fils (300.64 fils and 293.87 fils) or 2.3%. Furthermore, the difference between the highest exchange rate of the US dollar against the KD, and the parity rate (299.63 fils/dollar), reached one fils (0.3%) during the mentioned fiscal year. Meanwhile, the difference between the lowest exchange rate of the US dollar against the KD, and the parity rate, reached 5.76 fils (1.9%). The exchange rate of the US dollar against other major currencies witnessed more pronounced fluctuations during that period, whereby the difference between the highest and lowest exchange rates of the US dollar reached 22.7% against the Sterling pound, 20.8% against the Euro, 16.5% against the Swiss franc, and 14.6% against the Japanese yen.

For further info see link below:
Central Bank of Kuwait

Maybe the CBK link can give us something to go on?

Cheers!
DayDream

Sorry don't have the links - but go back to the history thread for 10/31 and there is about 40 pages of talk on it.

Sorry don't have the links - but go back to the history thread for 10/31 and there is about 40 pages of talk on it.