BHD - Bahraini Dinar

The History of Bahraini Dinar

In 1965, the Bahraini Dinar was introduced to replace the Gulf Rupee at a rate of 10 Rupees for 1 Dinar. Initially, 1 Dinar was valued at approximately ¾ of the British Pound (equivalent to 15 shillings). 

However, in 1967, following the devaluation of the British Pound, the value of the Dinar also decreased to be valued at about ⅞ of the British Pound (equivalent to 17 shillings and 6 pence). 

At this time, both coins and banknotes were introduced in Bahrain by the Central Bank of Bahrain. Abu Dhabi, the capital of the United Arab Emirates, was the first to adopt the Bahraini Dinar, but later switched to the Dirham in 1973. The exchange rate was set at 1 Dirham = 100 Fils = 0.100 Dinar.

Bahraini Dinar exchange rate

In 1980, the Bahraini Dinar was officially pegged to the Special Drawing Rights (SDR) of the International Monetary Fund (IMF). The fixed exchange rate was established at 1 USD = 0.376 BHD, meaning that 1 Dinar was approximately equivalent to 2.65957 US dollars or 9.9734 Saudi Riyals. 

In 2001, a decree allowed the use of Saudi Riyals in all stores in Bahrain, with an exchange rate of 10 Riyals for 1 Dinar. However, the 500 Saudi Riyal note was accepted only in some particular major supermarkets, electronics stores, and airports, limiting the use the Saudi Riyals.

Bahraini Dinar held the position of the third-highest-valued currency unit, following the Kuwaiti dinar and the Maltese lira. Following the switch to the euro, the dinar rose to become the second-highest-valued currency unit. Currently, the exchange rate for BHD is updated daily in our exchange rate table.

Bahraini Dinar (BHD) denominations

Bahraini Dinar is issued and managed by the Central Bank of Bahrain. The currency comes in the following types and denominations:

Bahraini Dinar coins

In 1965, Bahrain issued coins in denominations of 1, 5, 10, 25, 50, and 100 fils. The smaller denominations, including 1, 5, and 10 fils, were made of copper, while the larger denominations, including 25, 50, and 100 fils, were crafted from a nickel-brass alloy. 

After 1966, the 1 fil coin was no longer produced and is no longer in circulation today.

In October 1992, a bimetallic 100 fils coin was introduced. That same year, the 5 and 10 fils coins were issued in brass. 

In 2000, the 500 fils bimetallic coin was released, featuring an image of the Pearl Monument on the front. However, it was only minted until 2002 and continues to be in circulation since then.

In 2011, the 500 fils coin officially disappeared from circulation and was not reissued. Nevertheless, these coins remain legal tender.

For now, the Bahraini Dinar coins come in the following denominations:

• 5 fils minted in brass

• 10 fils minted in brass

• 25 fils minted in cupro-nickel

• 50 fils minted in cupro-nickel

• 100 fils minted with brass ring and cupro-nickel center

Bahraini Dinar banknotes

Bahraini Dinar banknotes have undergone significant development since their introduction in 1965, It includes changes in denominations, materials, and security features. Issues related to counterfeiting have also been addressed to protect the value of the currency. Currently, the circulating banknote denominations of the Bahraini Dinar are:

• 1/2 dinar: it comes in orange, depicting Old Bahrain Court on the observe and Bahrain International Circuit on the reserve

• 1 dinar: it comes in red, depicting Al Hedya Al Khalifiya School (Bahrain first school) on the observe and Galloping Arabian horses on the reserve

• 5 dinars: it comes in blue, depicting Shaikh Isa House on the observe and the First oil well in Bahrain on the reserve 

• 10 dinars: it comes in green, featuring King Hamad ibn Isa Al Khalifah on the observe and Shaikh Isa Bin Salman Al Khalifa Causeway on the reserve

• 20 dinars: it comes in brown, featuring King Hamad ibn Isa Al Khalifah on the observe and Al Fateh Islamic Center on the reserve

The latest banknotes in use are incorporated with enhanced security features, such as SPAR thread and motion elements, tactile lines on the front right side for visually impaired individuals, and three-dimensional designs. These have been effective measures to maintain the Bahraini Dinar’s value.

Current value of Dinar Bahrain (BHD)

The Bahraini Dinar is one of the highest-valued currencies in the world, ranking just after the Kuwaiti Dinar (KWD). Compared to the Euro, British Pound, and Japanese Yen, the BHD has a significantly higher value.

Bahrain features a robust and stable economy, primarily driven by oil, finance, and tourism. Furthermore, pegging the Bahraini Dinar to the US Dollar helps the currency avoid major fluctuations in the foreign exchange market. The Central Bank of Bahrain closely manages monetary policy and inflation, which has a crucial role in sustaining the Dinar's high value over the years.

The BHD is widely accepted in numerous international transactions, particularly in the Gulf region, which includes countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, and Iraq.

The Bahraini Dinar not only symbolizes Bahrain's development and stability but also reflects the economic strength of this small but resource-rich nation. The BHD is expected to continue playing a crucial role in international trade and investment in the future.