Iraqi Dinar v/s Kuwaiti Dinar

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Many people believe that there has been similarities in the value of Iraqi Dinar and Kuwaiti dinar. There was a time when Kuwaiti currency was considered to good to invest. If we compare the circumstances before the First Gulf War, Kuwait had a good build infrastructure as compared to Iraq needed much attention and investment. Although both had similar value of their currency but both were maintained in different scenarios. Kuwait got a diversified economy as compared to Iraq at that time.

Saddam Hussein invaded Kuwait in august 1990 and after the invasion they started replacing Kuwaiti currency with Iraqi dinars with the intention to take control of Kuwait. Kuwaiti became frightened, and in this panic, they started selling their currency at just 0.10 dollars. Speculators took this opportunity as they still had a belief in Kuwaiti dinar and started purchasing Kuwaiti dinar at very low value. At that time the official rate was 1 kwd for 3 US dollars.

Later on with the involvement of the United States, the threat to their country reduced a bit. Slowly and surely after some time the bank of Kuwait restated its currency at the same position where it was before the invasion. Now at that time the people who purchased Kuwaiti currency got 30 times more of its original investment.