History of Kuwait's Currency
"The first issue was the result of the promulgation of the Kuwaiti Currency Law in
accordance with the Amiri Decree No. (41) of 1960. This Law stipulated that the
Kuwaiti Dinar shall be the national monetary unit and established the Kuwaiti
Currency Board under the chairmanship of then Minister of Finance and
Economy, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, currently the Amir of Kuwait. Accordingly, on the first day of April 1961, the first issue was put into circulation, replacing the then circulating "Indian rupee". It was withdrawn from circulation effective February 1, 1982 and ceased to be a legal tender on May 31, 1982.

The Second issue followed the establishment of CBK in replacement of the Kuwaiti Currency Board, thus taking over the latter's function of issuing currency notes and coins in addition to much broader tasks. The second issue was put into circulation starting on November 17, 1970 for 1/4, 1/2, and 10 dinar notes and on April 20, 1971 for 1 and 5 dinar notes. The second issue was withdrawn effective February 1, 1982, and ceased to be a legal tender on May 31, 1982.

Following the accession of H. H. Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, the third issue was put into circulation by CBK on February 20, 1980, in the denominations of KD 10, 5, 1, 1/2 and 1/4. On February 9, 1986, a 20 dinar note was put into circulation. Due to the exceptional circumstances ensuing from the Iraqi invasion of Kuwait in 1990, this third issue was withdrawn from circulation effective March 24, 1991, and ceased to be a legal tender after 45 days from that date. The right of exchanging these notes at
the CBK expired on Saturday, September 30, 1991.

Soon after liberation, the fourth issue was put into circulation on March 24, 1991, so as to allow for a speedy exchange of the withdrawn third issue and to ensure the country's swift economic recovery. The fourth issue was withdrawn from circulation on August 17, 1994 and ceased to be a legal tender effective February 16, 1995. These notes can still be exchanged at CBK until Monday, August 16, 2004.Soon after liberation, the fourth issue was put into circulation on March 24, 1991, so as to allow for a speedy exchange of the withdrawn third issue and to ensure the country's swift economic recovery. The fourth issue was withdrawn from circulation on August 17, 1994 and ceased to be a legal tender effective February 16, 1995. These notes can still be exchanged at CBK until Monday, August 16, 2004.

The Fifth Issue of the Kuwaiti Currency was placed into circulation effective Sunday, April 3, 1994. It is the current circulating currency of the State of Kuwait and utilizes high-level technology utilizing technical features and security developments realized by the Bank Note printing industry."








Source: Central Bank of Kuwait