Foreign currency reserves were able during the previous month of January to rise to a record level of history, before the pandemic of the Corona virus and its impact on the world’s economies, so that it would have reached 11.51 billion dinars (37.75 billion dollars), an increase of 1.5%, and at a value of 174 million dinars (about 570 million Dollars), and thus would have surpassed its highest level ever in the previous month of November, when it reached 11.5 billion dinars (equivalent to 37.72 billion dollars), and this rise comes after the significant decline that occurred in the previous December.
However, after the spread of the Corona virus in many countries of the world and its direct impact on the world’s economies and the Kuwaiti economy in particular, the value of the official reserve assets of Kuwait during the previous month of March decreased by 1.9 percent on a monthly basis to 12.19 billion dinars (39.49) Billion dollar).
When those foreign exchange reserves increased with the Central Bank of Kuwait, it continued for a short period to cancel the flow of foreign investments at the Kuwait Stock Exchange, at which time foreign investment was able to achieve a net purchase of $ 185.2 million (56.28 million dinars) during the dealings of the month of January of the current year 2020. The foreign exchange reserves of the State of Kuwait at that time represent the total cash balances, accounts, bonds, certificates of deposit, treasury bills and foreign currency deposits with the Central Bank of Kuwait.
According to the statement of the Central Bank of Kuwait, the reserve assets of the bank or the Central Bank of Kuwait are approximately 12.42 billion dinars ($ 39.96 billion) in the previous February.
And foreign reserves were able to rise again by 5.8 percent in the previous month of March compared to the current month on an annual basis, from 11.52 billion dinars (37.1 billion dollars) the same month last year 2019.
As for the gold reserves in the State of Kuwait
As usual for all the past years with regard to the Kuwaiti economy, Kuwait's reserves of precious or yellow metal that settled at seventy-nine tons did not change even after the continuing trauma of the Corona virus and its impact on the global economy, and this came according to the World Gold Reserve Council.
At the present time, the book value of that amount of gold in the State of Kuwait in the current difficult period is about 31.7 million dinars, according to the prices at the time of purchase and not at the market value at the present time.
According to the Central Bank of Kuwait’s monthly bulletin, the bank’s total assets amounted to about 11.8 billion dinars, distributed between foreign liquid reserves that represent the greatest oil at 11.51 billion dinars, in addition to gold reserves worth more than thirty-one million dinars and other reserves of 257.6 million dinars.
In the economic context, foreign assets at the current difficult time measure the strength of the external financial position and the ability to resist the pressures on the local currency, the Kuwaiti dinar, the extent of its influence, confrontation, and ability to face crises such as the current Corona virus crisis.
As for the oil reserves in the State of Kuwait
On the other hand, the reserves of the State of Kuwait included that country rich in black oil, with a very high market value, as the value or balances of deposits and currencies amounted to about 11.42 billion dinars (36.8 billion dollars) in balance, in addition to about 564.3 million dinars (1.82 billion dollars) of the country's special drawing rights. Kuwait is in the International Monetary Fund, and also about 166.2 million dinars (536.1 million dollars) is a balance with the International Monetary Fund.