Bahrain's Currency: All You Need To Know

The official currency of Bahrain is the Bahraini dinar (BHD). It is divided into 1000 fils and often uses the symbol BD when trading. The Bahraini dinar is the second-highest valued currency in the world after the Kuwaiti dinar.

History of the Bahraini Dinar

The Bahraini dinar (BHD) is the official currency of Bahrain and has been since 1965, when it replaced the Gulf rupee. The Bahraini dinar is the second-highest valued currency in the world after the Kuwaiti dinar (KWD).

The Bahraini dinar is made up of 1,000 fils and often uses the symbol BD when trading. The name "dinar" comes from the Roman denarius, which was the original standard silver coin used as currency during Roman times from 211 BC for about five hundred years.

In 1964, the Bahrain Currency Board was established and issued a new family of Bahraini dinar banknotes and coins on 7 October 1965. The new banknotes and coins, which replaced the Gulf Rupee, contained the following note denominations: BD10, BD5, BD1, BD1/2, and BD1/4, with coin denominations of 100fils, 50 fils, 25 fils, 10 fils, 5 fils, and 1 fil.

The Amiri Decree for establishing the Bahrain Monetary Agency was issued in 1973. The Bahrain Monetary Agency took over the issuance of paper money in 1973, and starting in July 1978 with a 20-dinar note, it introduced a new family of notes dated 1973 in Arabic. The second issue of the Bahraini dinar was issued in 1978/1979 by the Bahrain Monetary Agency and contained the note denominations BD20, BD10, BD5, BD1, and BD1/2, with the coin denominations unchanged.

In March 1993, new security features were added to the Bahraini dinar to develop the currency and protect it from counterfeiting processes. With that, a new family of banknotes were issued: BD20, BD10, BD5, BD1, and BD1/2, along with the coins 100fils, 50 fils, 25 fils, 10 fils, and 5 fils.

After the issue of the Central Bank of Bahrain (CBB) Financial Institutions Law in 2006, the CBB issued the fourth issue of the Bahraini dinar in March 2008, containing banknote denominations of BD20, BD10, BD5, BD1, and BD1/2, with the coin denominations unchanged. On 17 March 2008, the Central Bank of Bahrain introduced its first series of notes (Bahrain's fourth series) reflecting the country's heritage and modern development.

Denominations of Bahraini Currency

The Bahraini dinar (BHD) is the official currency of Bahrain. It is divided into 1000 fils and often uses the symbol BD when trading. The name dinar comes from the Roman denarius, the original standard silver coin used as currency during Roman times from 211 BC for about five hundred years.

In 1964, the Bahrain Currency Board was established and issued a new family of Bahraini Dinar banknotes and coins on 7 October 1965. The new banknotes and coins, which replaced the Gulf Rupee, contained the following note denominations: BD10, BD5, BD1, BD1/2 and BD1/4, with coin denominations of 100fils, 50 fils, 25 fils, 10 fils, 5 fils and 1 fil.

The second issue of the Bahraini Dinar was issued in 1978/1979 by the Bahrain Monetary Agency and contained the note denominations BD20, BD10, BD5, BD1 and BD1/2, with the coin denominations unchanged. In March 1993, new security features were added to the Bahraini Dinar to protect the currency from counterfeiting. A new family of banknotes was issued: BD20, BD10, BD5, BD1 and BD1/2, along with the coins 100fils, 50 fils, 25 fils, 10 fils and 5 fils.

After the issue of the Central Bank of Bahrain (CBB) Financial Institutions Law in 2006, the CBB introduced the fourth issue of the Bahraini Dinar in March 2008, containing banknote denominations of BD20, BD10, BD5, BD1 and BD1/2, with the coin denominations unchanged.

In 2016, the Central Bank began circulating notes with enhanced security features. These new notes also have raised lines to assist the visually impaired.

Bahrain's Economy

The economy of Bahrain, a small Arab state in the Persian Gulf, is heavily reliant on oil and gas, with refined petroleum being its largest export. In 2020, its other major exports were raw aluminium, aluminium wire, iron ore, and asphalt. Bahrain's economy is extremely sensitive to shifts in oil prices, with 85% of the government budget derived from oil revenues. The country has been working to diversify its economy, and in recent years, the financial, commercial services, and communications sectors have grown markedly. Bahrain is also a strong financial centre with many banks and financial institutions.

Bahrain's official currency is the Bahraini dinar (BHD), which is divided into 1000 fils. The name "dinar" comes from the Roman "denarius", the standard silver coin used as currency during Roman times. The Bahraini dinar is the second-highest valued currency in the world after the Kuwaiti dinar. It has been the country's currency since 1965 when it replaced the Gulf rupee. The Bahraini dinar is pegged to the US dollar at a rate of 1 BHD = 2.659 USD.

The Bahrain Currency Board was established in 1964 and issued a new family of banknotes and coins on 7 October 1965. These new banknotes and coins replaced the Gulf Rupee and included the following denominations: BD10, BD5, BD1, BD1/2, and BD1/4, with coin denominations of 100, 50, 25, 10, 5, and 1 fil. The Bahrain Monetary Agency took over the issuance of paper money in 1973 and introduced a new family of notes dated 1973 in Arabic, with denominations of 20 dinars, 10 dinars, 5 dinars, 1 dinar, and 1/2 dinar. In 1993, new security features were added to the Bahraini dinar to protect the currency from counterfeiting, and a new family of banknotes was issued.

In 2006, the Bahrain Monetary Agency transitioned and was renamed the official Central Bank of Bahrain (CBB). The CBB oversees both conventional and Islamic banks, as well as insurance companies, investment firms, brokers, and other financial institutions. In 2008, the Central Bank of Bahrain launched a new group of banknotes, which was technically its fourth official series. This new issue honoured both the bright future of Bahrain and reflected on its past heritage.

The Central Bank of Bahrain

The CBB's responsibilities include implementing monetary policy, regulating and supervising the banking sector, acting as the government's fiscal agent, encouraging Bahrain's growth as a major international financial centre, and managing the kingdom's foreign currency, cash, and gold reserves. The bank also houses a coin and currency museum, which opened in February 1999 and showcases some of the rarest coins in the region, with collections dating back to 653 AD.

The CBB issues banknotes and coins for the Bahraini dinar (BHD), the official currency of Bahrain. The Bahraini dinar has been the country's currency since 1965, when it replaced the Gulf rupee. The CBB's fourth issue of the Bahraini dinar was released in March 2008, with banknote denominations of BD20, BD10, BD5, BD1, and BD1/2, and coin denominations of 100fils, 50 fils, 25 fils, 10 fils, and 5 fils. The Bahraini dinar is the second-highest valued currency in the world after the Kuwaiti dinar and is pegged to the US dollar at a rate of 1 BD = 2.659 USD.

Currency Exchange Rates

The official currency of Bahrain is the Bahraini dinar (BHD). It replaced the Gulf rupee in 1965 and is divided into 1000 fils. The Bahraini dinar is the second-highest valued currency in the world after the Kuwaiti dinar.

The Bahraini dinar is pegged to the US dollar at a rate of 1 BHD = 2.659 USD. This means that the exchange rate between the two currencies is fixed and will not fluctuate. As of November 2024, 1 BHD is worth approximately 2.65 USD.

The Central Bank of Bahrain manages the currency and has issued four series of banknotes to date, the most recent being introduced in 2008. The banknotes have denominations of 0.5, 1, 5, 10, and 20 dinars, while the coins are valued at 5, 10, 25, 50, 100, and 500 fils.

The exchange rate for the Bahraini dinar can vary against other currencies, such as the Indian rupee. As of November 2024, 1 BHD is worth approximately 224.40 Indian rupees. It is important to note that the exchange rates may differ depending on the source of information and that the rates may have changed since then.

Frequently asked questions