KUWAIT CITY, June 17: During the 1990s, 1 Kuwaiti Dinar was equal to ₹13–14 (₹17.90 to 1 US Dollar), reflecting the peg behavior of both currencies against the dollar and the gradual depreciation of the rupee. In the year 2000 Indian Rupee was ₹44.94 to a Dollar, in the next 10 years, by 2010 ₹45.73/per 1 Dollar. In the next 5 years by 2015, it was ₹64.15/per 1 Dollar, and after 10 years in 2025, today it is ₹86.10 per US Dollar ( 1 KD = ₹ 281.3)

Falling Rupee Boosts NRI Remittances
As the Indian rupee continues to weaken, Non-Resident Indians (NRIs) in Kuwait are seizing the opportunity to send more money home. With exchange rates crossing over ₹280 per Kuwaiti Dinar, remittance volumes have surged, offering better value for NRIs and boosting family support and investments in India. 

The Indian Rupee (INR) has experienced a steady decline against the US Dollar since 2012, influenced by a combination of global economic factors and domestic challenges.

What’s Driving the Indian Rupee’s Decline?

Trade Deficit: India’s persistent trade deficit, currently, India is importing more than it exports, increasing the demand for foreign currencies to pay for imports, thereby weakening the INR.

Capital Outflows: Foreign Institutional Investors (FIIs) have periodically withdrawn investments from Indian markets, driven by factors such as global economic uncertainties and more attractive returns elsewhere. These outflows reduce demand for the INR, contributing to its depreciation.

Economic Reforms and Growth Concerns: Domestic policy measures, including demonetization in 2016, have impacted economic activity and investor confidence. Additionally, concerns over economic growth have affected the attractiveness of Indian assets, influencing the INR’s value.

Rising Crude Oil Prices: India’s heavy dependence on oil imports means that fluctuations in global oil prices directly impact the country’s trade balance and currency value. Periods of rising oil prices have led to increased demand for foreign currency, exerting downward pressure on the INR.

US Federal Reserve Interest Rate Hikes: Increases in US interest rates attract global capital towards the US, leading to capital outflows from emerging markets like India. This shift results in reduced demand for the INR and contributes to its depreciation.

Geopolitical Tensions: Events such as the Russia-Ukraine conflict have led to increased global risk aversion, prompting investors to seek safer assets like the US Dollar. This behavior has further weakened the INR.

Analysts suggest that the INR’s depreciation may continue if global economic uncertainties persist and domestic economic challenges remain unaddressed. Factors such as oil price volatility, global interest rate trends, and domestic economic policies will play crucial roles in determining the future trajectory of the INR

The Indian Rupee’s ongoing depreciation is a complex issue influenced by a combination of global economic dynamics and domestic economic policies. Addressing these challenges requires coordinated efforts both within India and in the context of the global economic environment.

Anti-corruption authority targets cooperative society leadership in financial mismanagement probe.

KUWAIT CITY, June 16: In a pioneering move for Kuwait’s cooperative sector, Rawda and Hawally Cooperative Society has launched a 24-hour online delivery service through its dedicated mobile application, reports Al-Rai daily. The new service covers all areas of Kuwait, including chalets and farms, marking a significant milestone in the digital transformation efforts of the cooperative. Omar Ahmed Al-Ansari, Vice Chairman of the Board of Directors and Head of the Technical Committee and Investor Branches at the cooperative, pointed out that this initiative reflects the commitment of the cooperative to providing a seamless and modern shopping experience that meets the expectations of Rawda and Hawally residents. “The service is accessible to all consumers—shareholders and non-shareholders — with an option to enter their cooperative fund number when placing an order,” he revealed. Al-Ansari explained that the application offers access to a variety of departments, including the Perfumes and Beauty Center, Rawda Pharmacy, Rawda Café and Bakery, as well as the main cooperative market, allowing users to shop conveniently from multiple sections.

“This digital leap comes as part of our innovative response to the temporary closure of the central market for renovations, which will continue until Oct 15. Our goal is to maintain uninterrupted service and ensure that our community continues to receive the highest level of support without disruption,” he asserted. He added that while the central market undergoes renovation, all spare parts branches and central markets in Hawally will remain operational around the clock to ensure the continued presence and accessibility of the cooperative. “Achievement is a mindset. We are committed to advancing on all fronts through projects and initiatives that strengthen our leadership in the cooperative sector, always striving to deliver the best for the people of Rawda and Hawally,” he stressed.

He reaffirmed the Board of Directors’ commitment to food security and the sustainable provision of strategic stock; noting that this remains a key pillar of the long-term strategy of the cooperative, implemented under the direct supervision of the Ministry of Social Affairs and Labor. He expressed his sincere appreciation to Minister of Social Affairs and Labor Dr. Amthal Al-Huwailah for her continuous support for cooperative development, her encouragement of innovative initiatives, and her dedication to empowering young leaders in the sector. He also extended gratitude to the board members and the hardworking national staff at the cooperative, whose tireless efforts and strong sense of responsibility have been instrumental in the success of this national cooperative project.

KUWAIT CITY, June 16. The Central Bank of Kuwait has issued a circular reinforcing the regulatory framework for all electronic payment service providers, electronic money institutions, and payment system operators.

The circular mandates strict compliance with regulations governing the use of the Electronic Payment Services Gateway System, as part of the Central Bank’s ongoing efforts to enhance governance, operational oversight, and risk mitigation in the digital payments sector.

This directive is part of a series of measures aimed at safeguarding the country’s digital financial infrastructure integrity and strengthening public trust in electronic payment systems amid their rapid expansion.

The circular stipulates the obligations of service providers as follows:

– Bear full legal responsibility for the accuracy and validity of all documents and data uploaded through the Gateway System. Violations may result in the enforcement of Article 85 of Law No. 32/1968 concerning Currency and the Regulation of the Banking Profession.

– Documents must be submitted only by the legal representative of the company (Chief Executive Officer or General Manager) or an officially authorized employee (Compliance Officer or designated staff member). The Central Bank must be formally notified of all authorizations and any amendments in advance, through the prescribed mechanism.

– Must promptly inform the Central Bank about resignations involving authorized system users and immediately request the revocation of their access rights.

– Must retain original copies of all documents, especially the official documents issued by government entities, including criminal record certificates related to partners and leadership candidates. These must be submitted to the Central Bank upon request. The circular reflects the commitment of the Central Bank to intensify digital oversight and ensure legal accountability. It aims to improve internal controls within service providers, protect against unauthorized actions, and reduce operational and reputational risks. For consumers, it reinforces trust in the security and integrity of the national e-payment system. The circular also cited the following regulatory tools:

– Article 33 of the Central Bank’s Instructions for Regulating Electronic Payment Business (May 14, 2023) requires firms to establish governance policies, procedures, and oversight mechanisms. – Article 27 of the same instructions requires compliance with Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) obligations under Law No. 106/2013 and relevant FATF standards.

– Central Bank Circular (July 5, 2023) on leadership appointment regulations.

– Central Bank Circular (Oct 20, 2024) on documentation requirements for registration of partners and board members. Service providers must conduct an annual review to ensure board members and key employees meet the required solvency, integrity, and technical competence standards.

Any changes affecting these standards must be addressed immediately and reported to the Central Bank in writing. They must also retain documentation evidencing the completion of these reviews.