The Bahrain Dinar (BHD) is the currency of Bahrain. It is divided into 1000 fils.
The BHD was introduced in 1965, replacing the Gulf Rupee at a rate of 10 rupees = 1 dinar.
The BHD was initially pegged to the IMF’s special drawing rights (SDRs), but in 1971 it was pegged to the US Dollar and remains so today. Currently, it is pegged at 1BHD: $2.659.
The Bahraini Dinar is regulated by the Central Bank of Bahrain. The BHD is nominally subdivided into 1000 fils, but coins of 1, 5, 10, 25, 50, and 100 fils are rarely used. Instead, 1/2 and 1 BHD coins are used for most transactions. Banknotes are issued in denominations of 1/2, 1, 5, 10, 20, 50, and 100 BHD.
The BHD is one of the most valuable currencies in the world, second only to the Kuwaiti Dinar. This is in large part due to Bahrain’s vast oil wealth combined with domestic political stability and economic policies.