By Mohammad Kamal
KUWAIT, July 25 (KUNA) -- The Central Bank of Kuwait raised the value of the Kuwaiti dinar against the dollar Wednesday for the third time within 60 days.
In a statement online, the Bank said the exchange rate for the dinar is now 281.95 fils to the dollar; previously, it had been 286.9 fils to the dollar.
Analysts told KUNA this decision will boost the Kuwaiti economy.
Securities Group Chairman Ali Al-Moussa said the Kuwaiti dinar, based on the basket of prices, is increasing in value as the dollar continues to drop.
This will benefit the national economy and citizens, he added.
Al-Muzaini Exchange Director Jamal Zayed said the bank's decision was surprising as it has only recently raised the value of the Dinar twice within 60 days.
Zayed said, however, that this move is a corrective measure to regain the true value of the dinar.
He added the effect of this decision will ripple through the foreign exchange offices across the country because they deal with large amounts of cash to meet the demand of their markets.
Establishments that keep large amounts of cash on hand will be the hardest hit by the decision that is in effect as of today, Zayed added.
Importers of main consumer goods are expected to see their profits drop about two percent as well but consumers will benefit from this price difference, he added.
Director of the Al-Joman Center for Economic Consulting Nasser Al-Nafisi said the Central Bank's decision is a good step towards controlling inflation.
The price adjustment comes as part of a series of measures the Bank is cautiously taking in the upcoming period, he added.
The US dollar has been taking a beating over the past few years and losing value, he noted.
Gulf Cooperation Council (GCC) countries, whose currencies are pegged to the dollar, have lost about 25 percent of their currencies' value, Al-Nafisi said. Kuwait has predicted this continued loss when it unpegged the dinar to the dollar and based it instead on a basket of currencies.
