Until the middle of the 20th century, the Indian rupee was also used as the official currency in the eastern Arabian peninsula such as Kuwait, Bahrain, Qatar and the emirates of Oman. This meant, in fact, that the Indian rupee was the common currency in those regions as well as in India. The Indian Rupee was pegged to the British Pound at the rate of 13⅓ Indian Rupee = 1 Pound.
Under the British Raj, the Indian government complained of gold smugglers in the Gulf region whose base of operations was constantly being expanded, especially in Kuwait, Bahrain and Dubai. Smugglers would take gold to the Indian sub-continent and return it with Indian rupees that were valid for circulation in the region and exchanged for more valuable foreign currencies used by smugglers to buy more gold. Was. In the late 1950s, the volume of gold smuggled had become so large that it inevitably led to a severe depletion of foreign cash reserves in the Reserve Bank of India, and India suffered economic losses from smuggling operations. whose
As a result, in 1959 the Government of India made the Gulf Rupee equivalent to the Indian Rupee. It was specifically introduced as a replacement for the Indian rupee for circulation outside the country.
The dinar was issued in 1961 to replace the Gulf rupee. Initially it was equal to one pound sterling, as the rupee was fixed at one shilling 6 pence, resulting in a change rate of 13⅓ rupees to one dinar.
The dinar, the British currency in the Middle East, was introduced in 1960 to replace the Gulf rupee equivalent to the Indian rupee. It was initially equal to one pound sterling. Since the rupee was fixed at 1 shilling 6 pence, this resulted in a conversion rate of 13+1⁄3 in dinars. When Iraq invaded Kuwait in 1990, the Iraqi dinar replaced the Kuwaiti dinar as the currency, and large amounts of banknotes were stolen by the invading forces. After independence, the Kuwaiti dinar was reinstated as the country's currency and a new banknote series was introduced, eliminating previous notes, including piracy, "and now the value of the Kuwaiti dinar is among the highest in the world." Currently one KD (Kuwait Dinar) is equal to Indian Rupee 249₹ or 3.31 USD.