Foreign Currency
There are normally no foreign exchange restrictions in Kuwait. The Kuwaiti Dinar is freely convertible for all current and capital account transactions. The exchange rate is calculated daily on the basis of a basket of currencies which is weighted to reflect Kuwait's trade flow.Banking
The banking system of Kuwait is supervised by the Central Bank of Kuwait. A recently approved law now allows non-Kuwaitis to own up to 40 percent of a bank. In addition to the commercial banks in Kuwait, there are specialized banks which include the Industrial Bank of Kuwait, the Kuwait Real Estate Bank and the Saving and Credit Bank.Kuwaiti banks have established banking relationships throughout the West. Full correspondent relationship, which include deposit account services, are more limited and concentrated in large regional banks.
Several American banks provide a wide range of correspondent services. In addition, many non-US banks also share firm correspondent relationships with Kuwaiti banks.
Commercial Banks
Kuwait has seven commercial banks of which one, the Bank of Bahrain and Kuwait, is a foreign joint venture bank. Apart from this exception, foreign banks are not allowed to operate within Kuwait or to hold shares in Kuwaiti banks.Other Financial Institutions
Kuwait has a number of specialized banks. The Kuwait Finance House is a commercial bank that carries out Islamic financial transactions. The Industrial Bank of Kuwait and the Kuwait Real Estate Bank function much like American investment banks.© 2000 Mena Report (www.menareport.com)
