Hey Guys
Mufasa here
How are you guys I hope you all are fine? I am back again with another post that is related to the most expensive currency in our world right now. I got all the information from wiki and YouTube. so let start the post without any further delay.
I've always heard that the world's biggest currency is United States Dollar, No Doubt that the USD is the most powerful and popular currency in the world but not the most expensive currency. So the world's most expensive currency is KUWAITI DINAR (KD). The KD is the national currency of Kuwait state. Kuwait is Asia's western country which is situated on the northern edge of Eastern Arabia at the tip of Persian Gulf, bordering Iraq to the north and Saudi Arabia to the south. It is a small country which is located in between Iraq and Saudi Arabia.
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From 1973 to 1961 The British Empire had control all over the Persian Gulf area. The Kuwaiti country is also the lied in the Gulf area. When the British India Government saw that the Kuwait country economy is very low. They use the same currency that they were using in India at that time. So India and Kuwait have used the same currency at that time. But when after a few years of independence India faced some problems which are 𝗚𝗼𝗹𝗱 𝗧𝗿𝗮𝗳𝗳𝗶𝗰𝗸𝗶𝗻𝗴. Lots of Smugglers take gold and would go to India to sell all the gold and after selling they got the Indian rupee (INR). Then they would take the Indian Rupee into the Other countries for the exchange in foreign currencies. Because of this India's economic growth suffer huge losses that time. The government could not stop seeing the Indian economy going down and in 1959 The Indian Government introduces the new currency for the Gulf area ( Kuwait ) which is the Gulf rupee. The 1 Gulf rupee is equal to 1 Indian rupee but when you see the rupee note, they are not similar. The difference between these 2 notes is only one alphabet. The Gulf Indian rupee note numbers start with a letter "Z" and the Indian rupee note numbers start with a letter "A". Also, the Gulf Indian rupee would not be allowed to use in India.
Old Indian British Government Kuwaiti Note
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After that in 1961, Kuwait got independence from the British Empire and after two years of Independence, it becomes the first Gulf country to conduct its Parliament Elections. Slowly Kuwait becomes the most developed country by selling a lot of oils to other countries. After that In
1960 Kuwait introduced the Kuwaiti Dinar by the Kuwait Government itself. In 1960 the 1 Kuwaiti Dinar is 13.33 INR, and later in 1966, the Indian government devalue the Gulf Indian rupee. After seeing this other Gulf countries like Oman, Qatar, UAE also introduce their own currencies.
𝗕𝘂𝘁 𝘁𝗵𝗲 𝗯𝗶𝗴 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘄𝗵𝘆 𝗞𝗪𝗗 𝗶𝘀 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗲𝘅𝗽𝗲𝗻𝘀𝗶𝘃𝗲 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝘆?
The answer is that Kuwait's country follows the Fixed exchange rate. In 1975 the exchange rate of KWD is fixed to lots of currencies. The Fixed Exchange rate means that you fixed the exchange rate of your currency with some other currency and based on that currency values the values of your currency fluctuates.
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For eg-: If I create a new currency and I fixed the value of my ! currency equal to 100Blurt. Now the fluctuation in the Blurt, the value of my currency will also fluctuate.
All the Gulf countries are still following the fixed exchange rate including Kuwait. Kuwaiti Dinar is not fixed with a single currency, it is fixed with a lot of currencies like 20%dollar, 25%pounds,30% Euros, etc. But it is not so easy to maintain lots of currencies so you need a supply of foreign exchange reserves in your country. So Kuwait Government using the foreign exchange reserve to maintain the value of its country.
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The Big reason is that Kuwait is Oil country and its economy is based on oil. Kuwait has earned a lot of money by selling oil in the last 2/3 decades. Because of this, Kuwait does not lack foreign exchange reserves. Also, Kuwait has one of the largest global oil industry and that's why Kuwait maintains its fixed exchange rate. Another major factor is that the money is coming into Kuwait through Foreign investment or exports is much more than the money going out of Kuwait. It means that the foreigners are buying lots of goods and services from Kuwait. So the demand for currency is very high and the value of KWD is raising.
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