4.38 billion dinars to finance Kuwait's imports in 8 months

Ahmed Maghrabi: Total financing by local banks for Kuwaiti imports paid amounted to approximately 4.38 billion dinars during the first eight months of 2026, compared to 6.01 billion dinars during the same period in 2025.

Data on import financing by currency, issued by the Central Bank of Kuwait, showed that the US dollar continued to lead the list of currencies used in bank financing for imports, with a total of 3.26 billion dinars, representing 74.43% of total financing from January through the end of August 2026.

The "other" currency category ranked second, with total financing of 750.6 million dinars, accounting for 17.12% of total financing, up from 595.8 million dinars during the corresponding period last year—an increase of 154.8 million dinars, or 25.98%. This made it the only currency category to record year-on-year growth.

The euro ranked third, with total financing of 158.2 million dinars, representing 3.61% of the total, followed by the UAE dirham with financing of 94 million dinars (2.14%), and then the Saudi riyal with a total of 81.4 million dinars (1.86%).

As for other currencies, the Japanese yen recorded financing worth 15.8 million dinars, or 0.36% of the total, while financing in British pounds sterling reached 14.1 million dinars (0.32%), and the Swiss franc totaled 6.8 million dinars, equivalent to 0.16% of the financing recorded during the eight-month period.

Regarding import financing instruments, "other" payment orders held the largest share, totaling 2.87 billion dinars, or 65.50% of total financing. This was followed by letters of credit valued at 1.36 billion dinars (31.09%), while collection bills amounted to 150 million dinars, representing 3.42% of the total.

The data revealed a clear disparity in the levels of bank financing for imports throughout the months of the year. January recorded the highest monthly value at 865.3 million dinars, followed by February at approximately 860.8 million dinars. Financing then declined to 693.4 million dinars in March and 648 million dinars in April.

The decline continued into May, which recorded 266.5 million dinars, and June at 259.9 million dinars, the lowest monthly level during the period. Financing then rose again to 505.6 million dinars in July, before dropping to 284.5 million dinars in August.

Consequently, the first four months of 2026 accounted for financing totaling 3.06 billion dinars, compared to 1.31 billion dinars during the following four months, representing a decrease of 57.08% between the two periods, based on monthly total financing figures.

August alone recorded a decline of 43.73% compared to July 2026, and a drop of 65.34% compared to August 2025, when financing reached 820.9 million dinars. Meanwhile, July 2026 witnessed a notable increase in the "other" currency category, which accounted for 324.3 million dinars out of the total financing of 505.6 million dinars for that month, equivalent to 64.14%.

These figures reflect changes in the value of bank financing for imports paid by currency and payment instrument, according to the statistical framework adopted by the Central Bank of Kuwait, and do not necessarily represent the total value of the country's commodity imports.