The dinar is the currency of Bahrain. It is divided into 1000 fils. The name dinar derives from the Roman denarius. The dinar was introduced in 1965, replacing the Gulf rupee at a rate of 10 rupees = 1 dinar. The Bahraini dinar is abbreviated BD). It is usually represented with three decimal places denoting the fils.

Summary info

Summary information about Bahraini dinar

ISO 4217 Code:

BHD

Currency sign:

.د.ب or BD

Country:

Bahrain

Subunit:

fils

Coins:

5 fils, 10 fils, 25 fils, 50 fils, 100 fils, 500 fils

Banknotes:

½ Bahraini dinar, 1 Bahraini dinar, 5 Bahraini dinar, 10 Bahraini dinar, 20 Bahraini dinar

Central bank:

Central Bank of Bahrain

History

The history of currency in Bahrain is an integral part of the history of the country. It reflects not only the different stages of that history, but also the strong links enjoyed by Bahrain with many different countries in the world.

Few people spend much time actually examining the money in their pockets. They take it for granted that their coins and bank notes are, as they are supposed to be, representations of value in a currency that can either be freely spent locally or exchanged for one or more types of foreign currency to be used on their travels. People usually accept their money because everyone else around them accepts it, and that acceptance is based on the firm belief that a government treasury, central bank or monetary agency will manage its economic and financial affairs in such a way that the currency will maintain a stable value both locally and on the international foreign exchange markets. The latter is particularly important in the context of a country’s international trade, affecting the competitiveness of its exports and the price of its imports.

Throughout most of Bahrain’s history, the currency struck within the country was intended only for the use of its own people. External trade was financed through a variety of means. These included direct barter of one commodity for another through the popular trade coinages of the time, and by letters of credit issued by one merchant in favor of another. A particularly interesting example of the latter, which was discovered in Bahrain, is inscribed on a stone, and is now preserved in the Bahrain National Museum. Exchange rates were determined on a transaction by transaction basis, and coins from even the most distant lands would be valued largely by the purity of their metal and their total weight. Merchants and traders needed experience and judgment to make their calculations yield them a profit. Much of the time they had to look at, and evaluate, coins piece by piece. Thus they would have come to recognize a very large number of them by sight, and could tell the difference between a good coin and a bad one by the sound it made when bounced off or „rung” on a hard surface.

Today trade is a simpler, but less romantic matter. Gold and silver coins are no longer a normal medium of exchange, and even the use of paper currency is being replaced by bank transfers and credit cards for many transactions. Despite these developments, however, the role of the Central Bank of Bahrain continues to be one of guaranteeing the maintenance of the security, value and prestige enjoyed by the Bahraini Dinar. The Central Bank of Bahrain’s prime objective lies in making it possible for the people of Bahrain to look at their bank notes and coins with confidence in their value and trust in their security.

Bahrain was the first country in the Gulf to recognize the use of coinage as a means of enhancing trading and financial activity in the very early days. Indeed, the use of coinage made a strong contribution to Bahrain's early reputation as a commercial center. Strategically located on one of the worlds oldest trading routes between East and West, Bahrain had already become an important transit point offering traders a safe anchorage and a reliable supply of food and water, while its coastal waters were the source of the world’s finest pearls. Over the centuries practically every form of money has passed through the hands of Bahrain's merchants, enabling Bahrain to claim a unique economic and political status in the region. The use of many forms of money continued up until 1965 after which Bahrain introduced its own currency, the Bahrain Dinar.

By the time Bahrain became an independent state in 1971 it had already long been established as a commercial center. With its many assets-a favorable climate, an excellent location between Western Europe and the Far East, a population accustomed to extending warm hospitality to visitors from overseas, a business community well versed in the ways of modern trade, and a Government eager to encourage and support commerce and finance, the country was ideally placed to emerge as the region's major international financial center.

Coins

In 1965, coins were introduced in denominations of 1, 5, 10, 25, 50 and 100 fils. The 1, 5 and 10 fils were struck in bronze, with the others in cupro-nickel. The 1 fils coin was not produced after 1966 and no longer circulates. In 1992, brass replaced bronze in the 5 and 10 fils and a bimetallic 100 fils coin was introduced. A bimetallic 500 fils followed in 2000.

Note:

Bi-metallic coins are coins consisting of more than one metal or alloy, generally arranged with an outer ring around a contrasting center. Common circulating examples include the €1, €2, British £2, Canadian $2, South African R5, Turkish 1 lira, and all Mexican coins of $1 or higher denomination.

Banknotes

In 1965, The Bahrain Currency Board introduced notes in denominations of 100 fils, ¼, ½, 1, 5 and 10 dinar. In 1973, the Bahrain Monetary Agency took over production of paper money, issuing notes for ½, 1, 5, 10 and 20 dinar. In 2006, the Monetary Agency of Bahrain was renamed the Central Bank of Bahrain. On March 2, 2008, the Central Bank of Bahrain has released pictures of the new notes bearing its name in the local newspapers.

The Central Bank of Bahrain stated that the new notes will be released shortly. The new notes also feature new images reflecting Bahrain’s heritage as well as its modern development. Saudi riyals are also acceptable in Bahrain, with the exception of the Saudi 500 riyal note which is only accepted in major supermarkets, airports and electronic shops.

BHD banknotes pictures gallery

---

Useful links

About Central Bank of Bahrain:

Central Bank of Bahrain

List of currencies:

Currencies

Security and design features of BHD banknotes:

BHD banknotes

BHD currency on Wikipedia:

Bahraini dinar

Official Website of Central Bank of Bahrain:

www.cbb.gov.bh

Commemorative medals:

Commemorative medals