KUWAIT CITY, Dec 9: The Central Bank of Kuwait (CBK) is not considering the option of decreasing the value of Kuwaiti Dinar to increase the country’s revenues “as such a measure will erode trust in the currency,” Al-Jarida daily quoted Director of Economic Research Department at CBK Sami Al-Anba’e as saying.
Earlier, acting Finance Minister Mustafa Al-Shamali had warned that the measure, which is very risky, might have to be taken due to the huge increase in the State’s general budget.
Speaking at a seminar “Reducing the value of Kuwaiti Dinar,’ organized recently by Kuwait Accountants and Auditors, Al-Anba’e said the step is not good for the country as it will lead to a steep hike in the cost of commodities Kuwait totally depends on. Therefore, the country’s economy will be harmed.
Al-Anba’e stressed the necessity of curbing expenditure and consumption by imposing taxes over luxurious and unnecessary commodities. He added that Kuwaiti Dinar is a reliable currency due to the independence of CBK, the main decision-maker in such issues. He mentioned that the value of Kuwaiti Dinar was not much affected since it was pegged with the basket of currencies in 2007.