12.45 Billion Dinars In Kuwait’s Foreign Exchange Reserves

Kuwait's foreign exchange reserves stood at 12.45 billion dinars at the end of November, representing a monthly increase of 1.18%. This represents a growth of 145 million dinars compared to October’s figure of 12.31 billion dinars, as outlined in the Central Bank of Kuwait’s monthly bulletin for November 2023.

Over the course of the year, the foreign exchange reserve decreased by 672 million dinars, or 5.12%, compared to December levels of the previous year, which reached 13.12 billion dinars. Kuwait's foreign exchange reserves are made up of cash balances, accounts, bonds, certificates of deposit, treasury bills, and foreign currency deposits held at the Central Bank of Kuwait, according to Al-Anba.

In terms of liquid reserves, Kuwait's reserves cover its import needs for over 13 months, four times longer than the global average. It exceeds the safe limit for liquid foreign cash reserves, excluding gold, which typically covers three months of imports.

According to the World Gold Reserve Council, Kuwait's gold reserves remained constant at 79 tons. The book value of this gold quantity in Kuwait is 31.7 million dinars, based on the purchase prices and not the current market value.

Specifically, the monthly bulletin reveals that the bank's total assets reached 12.84 billion dinars, of which 12.45 billion dinars were liquid foreign reserves, 31.74 million dinars were gold reserves, and 360.8 million dinars were other reserves. Total assets experienced a monthly increase of 1.5% compared to the end of October, which recorded 12.65 billion dinars. A country's foreign assets can be used to measure its external financial position and its ability to withstand pressure on the local currency.

According to the Central Bank of Kuwait, cash in circulation increased by 1.22% in November, reaching 1.98 billion dinars compared to 1.96 billion dinars at the end of October. On the other hand, government accounts declined 16.5% from 2 billion dinars at the end of October to 1.67 billion dinars in November.

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