Kuwait step eases dinar speculation

Central bank resumes sale of short-term certificates after a two-month suspension.

    The Kuwaiti dinar to rose by 0.16 per cent  to trade around 0.282 per dollar [AFP] 

    Currency traders in Dubai and Kuwait said this was done to initially discourage investors anticipating an appreciation of the dinar.
     
    Speculators hurt
     
    "The central bank is happy," Steve Brice, a Middle East economist for the Standard Chartered Bank, said.
     
    "The move suggests that it has squeezed out speculators from the market."
     
    The central bank has been trying to deter bets on dinar appreciation for much of this year, cutting key interest rates in the run-up to a revaluation on May 20.
     
    As investor piled into dinar deposits, the central bank said on May 27 it had stopped selling the certificates it used to set the one-month intervention rate.
     
    The certificates are a main tool through which the central bank takes in short-term dinar deposits from Kuwaiti banks.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    We Are Still Here: A Story from Native Alaska

    We Are Still Here: A Story from Native Alaska

    From Qatar to Alaska, a personal journey exploring what it means to belong when your culture is endangered.