The Central Bank of Kuwait confirms its commitment to the stability of the dinar exchange rate

The Central Bank of Kuwait confirmed its commitment to the strength of the dinar and the stability of its exchange rate.

The bank said in a tweet on Twitter: In light of a report published by some websites about the devaluation of the dinar, (the bank) confirms its commitment to maintaining the stability of the dinar exchange rate in a way that guarantees its strength. Purchasing.

The bank added that it would also continue to adhere to policies aimed at strengthening the dinar and maintaining financial and monetary stability in the country.

Governor Muhammad Yusuf Al-Hashel confirmed earlier the strength and durability of the Kuwaiti dinar exchange rate system, which guarantees its stability against international currencies, and indicated that this is one of the basic constants of the Bank of Kuwait Central it solidly.

In addition, the Central Bank of Kuwait announced the allocation of the latest issue of central bank securities and bonds, with a total value of 240 million Kuwaiti dinars for a period of 3 months, at a rate of return of 1.250%.

Moreover, the Kuwaiti Financial Center report said that despite the decrease in the volume of initial issuances in the first quarter of 2020 due to the repercussions of the spread of the Covid-19 pandemic, The first bond market resumed its activity in the second quarter, as Gulf sovereign issuances amounted to $ 42.3 billion during the first half of 2020.

The spread of the pandemic and the sharp decline in oil prices caused a decline in the growth of the economies of the Gulf countries, which contributed to the exacerbation of their budget deficits and their increased need for financing.

The report added, entitled: Gulf Sukuk and Bond Markets - First Half 2020, which highlights the sukuk and bond issuances issued in the Gulf region during the first half of 2020 that the public debt markets An important role in providing financing to these countries, as the total number of primary Gulf sukuk and bond issuances reached $ 70.7 billion during the first half of 2020, up 9% year-on-year compared to total issuances of $ 65 billion during the first half of 2019. The number of initial issuances reached 174. During the first half of 2020 compared to 229 issues during the first half of, according to the Kuwaiti newspaper, Al-Anbaa.

According to the report, the UAE topped the total Gulf bond and sukuk market issuances in the first half of 2020 with a total value of $ 24.6 billion, or 35% of the total value of Gulf issuances through 95 Version. Saudi Arabia was followed by 28% of the total value of Gulf issuances, Qatar came in third place with 26% of the total value of Gulf issuances, while the share of Kuwaiti issuances amounted to $ 2.8 billion, or 4% of the total value of Gulf issuances.

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