The Central Bank of Kuwait has set Kuwaiti Dinar Exchange Rate at 299.63 fils against one U.S.Dollar, with an approved movement margin of 3.5 percent, which means the exchange rate would range between a maximum of 310.11 fils and a minimum of 289.14 fils per dollar.
It is hoped that this would guarantee comparative flexibility to the national currency exchange rate, so as to reinforce its relative stability against international currency rates. The margins will help
absorbing usually sharp fluctuations of exchange rates of major currencies.
KNPC plans US $ 3000 Million for Oil Refinery Developments
It is reported that investments on the development of the three oil refineries in Kuwait are expected to reach US $ 3000 Million according to the five-year plan of Kuwait National Petroleum Company. A study is being conducted regarding these developments.
The main objective of these developments is to improve the quality and standards of the products to match the rapid developments in the environmental legislation such as lowering the percentage of sulphur in oil products and produce petroleum products that are less harmful to human health. With these developments in place, serious directions in Kuwait have been made to use improved products especially with rapid international changes.
The study on the development of the refineries is divided into phases where the preliminary phase has already begun. That will be followed by the detailed phase, which would explain the required units to be exchanged or added in the refineries.
Presently the Mina Ahmadi Refinery produces 400,000 barrels a day, with an unused capacity of 50,000 barrels. Shuaiba Refinery produces 200,000 barrels per day and the Mina Abdulla Refinery produces 270,000 barrels a day.
Kuwait Government Budget for 2002/2003 Fiscal Year
The Government of Kuwait has approved the general government budget for the fiscal year 2002/2003. Budget revenues of $ 11.5 Billion are based on a conservative price for Kuwaiti Crude of $ 15 per barrel. The budget allocates expenditures of $ 17.8 Billion, 2.9% above the amount budgeted for the previous fiscal year. The budget projects a deficit of $ 6.2 Billion before Reserve Funds for Future Generations (RFFG) and $ 7.4 Billion after the $ 1,154 million allocated to the fund.
Trade
Kuwait continued to enjoy a relatively high trade surplus as indicated by the most recent data available from the Central Bank of Kuwait. The surplus during the first half of 2002 stood at $ 3.4 billion, slightly above the previous six-month period though 33% lower than a year ago. The smaller surplus compared to a year ago was largely the result of lower oil export receipts. Imports, meanwhile, fell by 2.4% from a year ago.
The lower price of oil combined with reduced OPEC Production quotas led to a decline in Kuwait’s oil export receipts to $ 6.6 billion during the first half of 2002, 21% below their level a year ago. Nonetheless, the figure remained among the highest in recent years, eclipsed only by record highs seen in the previous two years. Oil exports received substantially during the second quarter of 2002 from lower levels in 4th quarter of 2001 and first quarter of 2002, increasing by 21% over the previous quarter as oil prices strengthened.
Kuwait’s Labor Force
Kuwait’s labor force grew at a rapid 8.3% rate during the 23 months ending June 2002, with both the Kuwaiti and expatriate segments experiencing faster growth of 6.6% and 8.8% respectively. Over 100,000 new jobs were created with 47,000 during the first half of 2002.
KPC and subsidiaries
Kuwait Petroleum Corporation (KPC) is the state-owned Petroleum Holding Company with seven subsidiary companies as follows:
