Establishment and Objectives
The Central Bank of Kuwait (CBK) was established by virtue of the Law No. (32) of 1968 concerning Currency, the Central Bank of Kuwait and the Organization of Banking Business. It replaced the Kuwaiti Currency Board, which had been established by virtue of the Amiri Decree No. 41 of 1960.
The role of the Kuwaiti Currency Board, unlike central banks, which carry out broad functions ranging from the drawing and implementation of monetary policies to supervision over banks, was confined to the issuance of bank notes and coins. Therefore, the establishment of CBK was in response to the need for keeping abreast with both domestic and international economic developments, especially as the role of the monetary and financial policy gained further importance in the pursuit of social and economic development in the country.
CBK started operating on the 1st of April 1969 as specified in Article 15 of Law No. 32 of 1968. Its objectives are:
to exercise the privilege of the issue of currency on behalf of the State
to endeavor to secure the stability of the Kuwaiti currency and its free convertibility into foreign currencies
to direct the credit policy to assist social and economic progress and increase national income
to supervise the banking system in the State of Kuwait
to serve as Banker to the Government
to provide financial advice to the Government
Capital of the Central Bank
The capital of the Central Bank of Kuwait is five million Kuwaiti Dinars, fully paid up by the Government. This capital may be increased by virtue of a decree and the increase drawn from the General Reserve of the Bank.