Kuwait currency guide: The Kuwaiti dinar (KWD)

The Kuwaiti dinar (KWD) powers daily life in Kuwait. It’s also widely regarded as one of the world’s strongest currencies.

If Kuwait’s in your future travel plans or you need to send money to family or friends in Kuwait, it’s a good idea to know more about money in the country. This guide covers everything you need to know about Kuwait’s currency, including:

• A brief history of the Kuwaiti dinar
• Currency customs and spending tips
• How to get more value when exchanging your US dollars for KWD

What is the currency in Kuwait?

The currency of Kuwait is the Kuwaiti dinar. It’s represented by the letters “KWD” on international exchanges and د.ك in Arabic.

Each dinar is made up of 1,000 fils. Dinar banknotes come in the following denominations: ¼, ½, 1, 5, 10, and 20 dinars. There are also coins in denominations of 1, 5, 10, 20, 50, and 100 fils.

History of the Kuwaiti dinar

Kuwait introduced the dinar in 1961, soon after gaining full sovereignty from England. Prior to that, people in Kuwait used the Indian rupee. Establishing its own currency gave Kuwait a new sense of nationalism and helped strengthen its economy.

During the 1990 Iraqi invasion, Kuwaiti citizens were forced to use the Iraqi dinar. Invading forces even stole large quantities of KWD banknotes, further destabilizing the economy. But by 1991, after Kuwait regained control, the Kuwaiti dinar was reinstated and reaffirmed as the country’s official currency.

Today’s banknotes represent the sixth series of the Kuwaiti dinar. They feature advanced security and designs that celebrate Kuwait’s iconic landmarks and cultural heritage.

How much is the Kuwaiti dinar worth?

As of mid-2025, 1 KWD equals about 3.27 US dollars (USD). Kuwait’s thriving economy, large oil reserves, and steady budget surpluses back the dinar’s strength. The country also maintains high foreign reserves and invests heavily in its own financial sector.

7 tips for exchanging US dollars to Kuwaiti dinars

Exchange rates for Kuwait’s currency (and other world currencies) change daily. Even small shifts can have a big impact on how much KWD you get. So, if you’re looking to exchange your USD for KWD, these tips can help you stretch your money further.

1. Research and compare exchange rates

Research the rates and fees of several currency exchange services before converting US dollars to Kuwaiti currency. Some currency exchange services advertise great exchange rates but charge high fees.

For a better experience, track live exchange rates on the Western Union^® mobile app or online.

2. Notify your bank ahead of traveling

Preparing for a trip often comes with a long to-do list. Make sure letting your banks know that you’re traveling abroad is on yours. Otherwise, they might mistake your international transactions for suspicious activity and freeze your cards.

Most banks let you set travel notices by phone, through their app, or with a quick online chat.

3. Avoid exchanging money at airports, hotels, and tourist areas

Steer clear of airport kiosks, hotel desks, or exchange booths in touristy areas. While highly convenient, these services typically offer poor exchange rates and tack on big fees.

If you’re not sure where to exchange currency in Kuwait, consider converting your USD to KWD at your local bank before leaving. A trusted money service provider like Western Union is another solid go-to.

4. Consider commissions and fees

Some currency exchange services advertise low exchange rates but sneak in high commission rates and hidden fees. Always consider the total cost (not just the rate) when comparing exchange options. Watch for extra charges like flat transaction fees, percentage-based commissions, or marked-up exchange rates.

A fair, transparent service gives you better value overall and helps you make the most of your spending money.

5. Opt to be charged in Kuwaiti currency when withdrawing money from ATMs

When using an ATM in Kuwait, choose to be charged in Kuwaiti currency. That way, the bank handles the conversion, often at a better rate. You’ll typically get closer to the midmarket rate and avoid extra foreign exchange fees, especially with a travel-friendly debit card.

For safety, use ATMs in well-lit, secure locations during daytime banking hours.

6. Understand that exchange rates vary depending on the day

Exchange rates shift daily, and timing can make a difference. Use the Western Union app to monitor live rates so you can convert your money when it’s most favorable.

7. Use reputable exchanges

Always use a vetted currency exchange service or an established bank when converting USD to KWD. Western Union, for example, offers built-in security features such as Touch ID, transfer tracking, PCI DSS compliance, and data encryption. Trustworthy providers offer transparency and peace of mind, at home and abroad.

Using money in Kuwait

Here is everything you need to know about using Kuwait’s currency, including accepted payment methods and tipping etiquette.

Can you use US dollars in Kuwait?

No, do not plan to use US dollars in Kuwait. Bring a debit or credit card with no foreign transaction fees or use the Kuwaiti dinar. Although some touristy shops or hotels might accept US dollars, it’s uncommon.

Tipping etiquette in Kuwait

Tipping is appreciated in Kuwait. Restaurants typically include a 10% to 15% service charge on your bill. If they don’t, tipping 10% to 12% is customary.

Plan to tip bellhops, valet attendants, and gas station attendants a small amount (1 dinar or less). Tipping taxi drivers is not necessary, although many people round up the total fare.

Send money to Kuwait with Western Union

Sending Kuwaiti dinars (KWD) is simple with Western Union, whether you’re helping family or friends with expenses or sending a gift.

You can send money online, through the Western Union app, or at an agent location near you. Your recipient can pick up cash at one of more than 100 agent locations across Kuwait, or you can send funds directly to their bank account.

Explore more currency guides

Planning a trip or sending money beyond Kuwait? These currency guides can help you understand how money works in other countries.

• Pakistan currency guide: the Pakistani rupee (PKR)
• Nigeria currency guide: the Nigerian naira (NGN)
• India currency guide: the Indian rupee (INR)
• South Africa currency guide: the South African rand (ZAR)