Kuwait’s official currency was first introduced in the early part of its existence. The first coins were made during the reign of Kuwait’s fifth Amir, who ordered the use of an official currency in an attempt to state Kuwait’s independence. These coins were all made by hand with a hammer, so each coin looked a little bit different than the others. Each misshapen coin was equal to one paisa.
This coin was only on the market for a few months. It was withdrawn for a few different reasons. Kuwait was already using the Rupee of Queen and Empress Victoria and the Indian paisa, so the second, handmade series of coins caused confusion and problems in the economy. The Indian paisa currently owned the market, so the introduction of another coin did not stick, and Kuwait had no gold reserve to compete with the stability of the Indian paisa, which had ample amounts of gold to back it.Read More