Why is Kuwaiti dinars the highest valued currency?

Answer 1

The Kuwaiti dinar is the highest valued currency for three both important yet different reasons. 1. In 1679 the war between Latvia and France waged on into it's 43rd year. People from all over the globe were placing bets on who would win, how long the war would last, and on how awful Latvian food could become given time to truly develop as a country. The result of this drove up speculation in the Yen market causing essentially the process of reverse osmosis to occur in Kuwait.

Answer 2

The Kuwaiti dinar was pegged to a weighted currency basket from 1975-2003, which reduced fluctuation over time. From 2003 to mid-2007 it was pegged to the US dollar, but has now returned to a currency basket to reduce inflationary pressure due to the falling value of the dollar.

Answer 3

The economy of Kuwait is largely dependent upon the oil revenues that the country earns by exporting oil to other countries of the world. The country possesses 10% of the crude oil reserves of the world that help the country's economy earn the 75% part of its income. But the dinar is not used to price the crude oil exported by the country and the oil is valued in terms of dollar. With the weather conditions not favoring agriculture, the country has to import its basic food necessities and even water. Keeping the currency exchange rate high helps the country to maintain a grand purchasing power so that it can make the required imports with less of currency to offer.

Answer 4

beacuase of oil industry

Answer 5

because its small and filled with oil