Bahrain Currency

The Currency of Bahrain: The Bahraini Dinar (BHD)

Bahrain, a small island nation located in the Persian Gulf, is known for its rich history, modern economy, and unique blend of cultures. According to beautyphoon, the currency of Bahrain is the Bahraini Dinar (BHD), a monetary unit with a fascinating history and a significant role in the nation’s financial and economic landscape. In this comprehensive overview, we will delve into the history, denominations, design, usage, and broader economic context of the Bahraini Dinar, offering a comprehensive look at this essential element of Bahrain’s economy.

Historical Overview:

The history of the Bahraini Dinar is closely tied to the island nation’s economic development and its status as a major financial and commercial hub in the Gulf region. Bahrain has a long history of trading, dating back to ancient times when it was a vital center for the pearling industry.

The introduction of the Bahraini Dinar as the official currency of the country occurred in 1965, following the establishment of the Currency Board in Bahrain. Prior to that, the Indian Rupee was the official currency of Bahrain. The switch to the Bahraini Dinar marked a significant step toward establishing an independent and modern financial system for the nation.

Denominations and Design:

The Bahraini Dinar is available in various denominations of banknotes and coins, each featuring distinctive designs that showcase aspects of Bahrain’s heritage, culture, and historical significance.


Bahraini Dinar banknotes were available in the following denominations:

  1. 1 Dinar
  2. 5 Dinars
  3. 10 Dinars
  4. 20 Dinars

The design of these banknotes often features prominent figures from Bahrain’s history, landmarks, and themes that represent the nation’s development and values. For example, the 1 Dinar note displays a portrait of Bahrain’s former ruler, Shaikh Isa bin Salman Al Khalifa, and an image of the Bahrain World Trade Center, a modern architectural icon.


Bahraini Dinar coins are issued in several denominations, including:

  1. 5 Fils
  2. 10 Fils
  3. 25 Fils
  4. 50 Fils
  5. 100 Fils

The designs of these coins typically reflect Bahrain’s unique cultural and natural features. For instance, the 100 Fils coin may feature the image of a traditional dhow (a type of sailing vessel) or other national symbols.

Please note that currency designs and denominations can change over time, so it is advisable to consult the latest information from the Central Bank of Bahrain or other official sources for the most up-to-date details regarding Bahraini Dinar banknotes and coins.

Usage and Exchange Rate:

The Bahraini Dinar is used for all financial transactions within the country. It is the official and only legal currency in Bahrain and is not pegged to any other currency.

The exchange rate of the Bahraini Dinar can fluctuate in the foreign exchange market, influenced by various factors such as economic conditions, market sentiment, and global geopolitical developments. When traveling to Bahrain or engaging in foreign exchange transactions, it’s advisable to check the current exchange rate with authorized currency exchange providers or financial institutions.

Currency Exchange and Availability:

Currency exchange services are widely available in Bahrain, particularly in major cities, commercial areas, and tourist destinations. Banks, exchange offices, and ATMs are common sources for obtaining Bahraini Dinars. Most establishments, including hotels, restaurants, and stores, accept major credit cards, making it convenient for both residents and visitors.

Banking and Financial Services:

Bahrain has a well-developed and thriving financial sector that provides a wide range of services. As a leading financial hub in the region, Bahrain is home to numerous local and international banks, financial institutions, and investment firms. These institutions offer services such as savings and checking accounts, loans, wealth management, and investment opportunities.

The Central Bank of Bahrain plays a crucial role in regulating and supervising the financial sector to ensure its stability and integrity.

Challenges and Economic Developments:

Bahrain’s economy has evolved over the years, with a focus on diversification and growth in various sectors. Traditionally, the nation’s economy was heavily reliant on oil revenues, but significant efforts have been made to reduce this dependence and develop other sectors, such as financial services, tourism, and manufacturing.

Despite its small size, Bahrain has a dynamic and open economy that benefits from its strategic location, economic policies, and infrastructure. The government has implemented economic reform initiatives and investment promotion programs to encourage foreign investment and enhance the nation’s competitiveness.


The Bahraini Dinar, with its intriguing history and diverse denominations, is an integral part of Bahrain’s financial and economic landscape. It reflects the nation’s ongoing development and serves as the medium of exchange for its residents and international visitors. As Bahrain continues to evolve and expand its economy, the Bahraini Dinar remains a symbol of the country’s financial stability and its role as a leading financial and commercial center in the Gulf region.