CBK Announces the Withdrawal of the Fifth Issue of Currency Notes from Circulation
H.E. the Governor of the Central Bank of Kuwait (CBK), Dr. Mohammad Y. Al-Hashel, announced that the remaining volume of the fifth issue of Kuwaiti Dinar (KWD) banknotes left in circulation was to be withdrawn from public circulation, and would no longer represent legal tender as from close of business 1st October 2015. In this regard it will be noted that a new, sixth issue of KWD banknotes was released into public circulation by the CBK on 29th June 2014 and that the total amount of banknotes currently outstanding is estimated as being KWD 1,400 million.
In accordance with Law No. 32 of 1968 - Concerning Currency, the Central Bank of Kuwait and the Organisation of Banking Business (an amendments thereto regarding the withdrawal of banknotes from circulation) - Article 10, the Board of Directors of the CBK, with the endorsement of His Excellency, The Minister of Finance, resolved to withdraw all denominations of the fifth issue of KWD banknotes from public circulation with effect from the close of business Thursday, 1st October 2015. Notice of this resolution is contained in the ‘Official Gazette’ and dated 19th April 2015.
In making this statement H.E. the Governor emphasised the following points:
- existing holders of the fifth issue of KWD banknotes will be able to exchange them for new banknotes through branches of banks operating within the State of Kuwait until the 1st October 2015 deadline;
- thereafter, the fifth issue of KWD banknotes will lose status as legal tender, and as such transactions in these notes will no longer be allowed;
- holders of the fifth issue of KWD banknotes will, however, be able to exchange such notes in the Banking Hall of the Central Bank of Kuwait for a period of ten-years from the resolution date (19th April 2015).
H.E. the Governor further indicated that the CBK continues to work closely with institutions based both locally and overseas involved in the exchange of banknotes and currency, so that they might be fully apprised of the deadline when the fifth issue of KWD banknotes will lose legal tender status.
Dr. Al-Hashel expressed his appreciation for the quick and efficient manner in which the new, sixth issue of KWD banknotes had been assimilated into public circulation - the success of which was apparent insofar as the new issue represented over 93% of the volume of all KWD banknotes currently outstanding. A large measure of gratitude should be given to the public who had made the smooth transition from old to new banknotes possible.
In summarising H.E. the Governor emphasised that the Central Bank of Kuwait was at all times keen to monitor international developments and, where necessary, implement new or revised business practices which were in the best interests of the national economy.