Bahraini Dinar

Overview

Since 1965, the official currency for Bahrain has been the Bahraini Dinar (BHD). The symbol for the Dinar is BD; the Arabic symbol is .د. The Bahrain Dinar is pegged to the US Dollar at a rate of 0.376 Dinar = 1 USD.

Economy

• The Bahrain economy is rated as the 10th freest economy in the world.
• Top industries are aluminum smelting, petroleum refining and processing, offshore banking coupled with Islamic banking, tourism, iron pelletization, ship repair, and fertilizers.
• Export products are petroleum, textiles, and aluminum.
• Petroleum accounts for 60% of export products.
• Import products are chemicals, machinery, and crude oil.
• Unemployment rate is estimated at plus or minus 3.8%; however, it is growing rapidly due to the depletion of oil resources.
• There is almost no agriculture activity in Bahrain; it accounts for only 0.3% of the total GDP.
• Bahrain has a free trade agreement with the United States of America.
• The country is working on diversifying its products and has a 15-year plan in place. Currently Bahrain is rated to be the fastest-growing economy of the Arab countries.

History

• In 1965, the Bahrain Dinar replaced the Gulf Rupee.
• In 1980, the dinar was pegged to IMF’s special drawing rights. The fixed US Dollar rate is 0.376 dinar = 1 USD.
• In 1979, new paper notes were introduced.
• In 2006, the Bahrain Agency became the Central Bank of Bahrain.
• In 2008, the Central Bank of Bahrain launched a new group of notes that reflected the old and new development of Bahrain.
• Bahrain also accepts Saudi Riyal, except for the 500 riyal.