At the end of last February, Kuwait’s foreign exchange reserves witnessed a significant jump by about 1.2 billion dinars (equivalent to 3.9 billion dollars) to reach the level of 14.3 billion dinars (equivalent to 46.6 billion dollars), with a monthly increase of 9.5 percent, compared to 13.1 billion dinars ( equivalent to 42.7 billion dollars) at the end of last January.
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. Foreign assets measure the strength of the external financial position and the ability to resist pressures on the local currency.
According to the Central Bank of Kuwait, the total assets of the bank amounted to 14.7 billion dinars (equivalent to 47.9 billion dollars), distributed among liquid foreign reserves, which represent most of the reserves, at a value of 14.39 billion dinars, in addition to gold reserves at a value of 31.74 million dinars, and other reserves of 358.7 million dinars.
Liquid reserves cover Kuwait’s import needs for more than 13 months, which is 4 times higher than the global average.
The international rating agencies had expected that Kuwait would achieve financial surpluses during the next two years, as a result of the rise in oil prices, which eliminates liquidity risks in the next few years at least, and helps maintain macroeconomic stability, as well as the country’s external financial position.
According to Central Bank of Kuwait data, the general reserve fund amounts to 992.6 million dinars, while the value of cash in circulation in the country is 2.14 billion dinars, and government accounts are 2.5 billion dinars.
