3.6% Decrease In Kuwait’s Foreign Exchange Reserves

The most recent monthly bulletin from the Central Bank of Kuwait has unveiled a decline in the foreign exchange reserve balance for May, dropping to KD 12.98 billion from KD 13.47 billion in April, marking a 3.6% decrease totaling KD 490 million, as reported by Al Anba newspaper.

The data shows that since the beginning of the year and during the first five months of this year, the reserve has not witnessed any significant change. Last month, it recorded the same levels as December 2023, at KD 12.98 billion.

Additionally, the data indicates that foreign exchange reserves declined on an annual basis last May, amounting to KD 12.98 billion compared to KD 13.98 billion in May of the previous year, marking a decrease of 7.15%, totaling one billion dinars.

The country’s foreign exchange reserves represent the total cash balances, accounts, bonds, certificates of deposit, treasury bills, and foreign currency deposits with the Central Bank of Kuwait.

Calculating the liquid reserves reveals that they cover Kuwait’s import needs for more than 13 months, which is four times higher than the global average. The safe limit is considered to be the liquid foreign exchange reserve, excluding gold, which covers three months of the average value of imports.

The data indicated that Kuwait’s gold reserves remained unchanged as usual, stabilizing at 79 tons according to the World Gold Reserve Council. The book value of that amount of gold in Kuwait amounted to KD 31.7 million, based on the prices at the time of purchase and not the current market value.

According to the monthly bulletin, the total assets of the Central Bank of Kuwait decreased to reach KD 13.223 billion in May, compared to KD 13.684 billion in April, marking a decline of 3.37%, amounting to KD 461 million.

The data indicated an increase in other assets during May, reaching KD 212.8 million compared to KD 182.8 million at the end of April, marking a 16.4% increase.

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