Bahraini dinar

The dinar (Arabic: دينار Dīnār Baḥrēnī) (sign: .د.ب or BD; code: BHD) is the currency of Bahrain. It is divided into 1000 fils (فلس). The Bahraini dinar is abbreviated د.ب (Arabic) or BD (Latin). It is usually represented with three decimal places denoting the fils.

Bahraini dinar
دينار بحريني  (Arabic)
ISO 4217
CodeBHD
Denominations
Subunit
11000fils
Symbol.د.ب (Arabic) or BD (Latin)
BanknotesBD 12, BD 1, BD 5, BD 10, BD 20
Coins5, 10, 25, 50, 100, BD 12 (500 fils)
Demographics
User(s) Bahrain
Issuance
Monetary authorityCentral Bank of Bahrain
Websitewww.cbb.gov.bh
Valuation
Inflation1,4%
SourceThe World Factbook, 2017 est.
Pegged withU.S. dollar (USD)
$1 USD = 0.376 BD

The name dinar derives from the Roman denarius.

The Bahraini dinar is currently the second strongest circulating currency as of May 2021, with one Bahraini dinar equalling 2.65 United States dollars which is just behind the Kuwaiti dinar with one Kuwaiti dinar equalling to 3.32 United States dollars.

History

The Bahraini dinar was introduced in 1965, replacing the Gulf rupee at a rate of 10 rupees = 1 dinar. The dinar was worth 15 shillings sterling upon introduction. Bahraini coins and notes were introduced at that time.

Initially, Abu Dhabi adopted the Bahraini dinar but changed to the dirham in 1973, with 1 dirham = 100 fils = 0.1 dinar.

Exchange rate

In December 1980, the dinar was officially pegged to the IMF's special drawing rights (SDRs). In practice, it is fixed at $1 USD = 0.376 BHD, which translates to approximately 1 BHD = $2.65957 USD[1] and, consequently, almost 10 Saudi Arabian riyals. This rate was made official in 2001 and Saudi riyals are accepted in Bahrain at any point of sale, with the exception of the Saudi 500 riyal note which is only accepted in major supermarkets, airports and electronic shops.

Before Malta's adoption of the euro on 1 January 2008, it was the third-highest-valued currency unit after the Kuwaiti dinar and Maltese lira. After Malta adopted the euro, the dinar became the second highest-valued currency unit.

Current BHD exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD

Note: Rates obtained from these websites may contradict with pegged rate mentioned above

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. A bimetallic 100 fils coin was introduced in October 1992.[2] In 1992, brass replaced bronze in the 5 and 10 fils.

A bimetallic 500 fils coin was released in 2000[3] with the Pearl Monument on the obverse. The coin was discontinued in response to the uprising in Bahrain, which resulted in the demolition of the monument on 18 March 2011, although the Bank stated that minting had ceased some time prior to that. The coin remained in use but was no longer released back into circulation after reaching banks.[4]

Coins of the Bahraini dinar[5]
ImageValueDiameterWeightCompositionObverseReverseFirst Minted Year
1 fils15 mm1.5 gBronzePalm treeValue1965
5 fils18.5 mm2 gBronzePalm treeValue1965
10 fils23.5 mm4.75 gBronzePalm treeValue1965
25 fils16.5 mm1.75 gCupro-nickelPalm treeValue1965
50 fils20 mm3.1 gCupro-nickelPalm treeValue1965
100 fils25 mm6.5 gCupro-nickelPalm treeValue1965
5 fils19 mm2.50 gBrassPalm treeValue1992
10 fils21 mm3.35 gBrassPalm treeValue1992
25 fils20 mm3.5 gCupro-nickelDilmo Civilization sealValue1992
50 fils22 mm4.5 gCupro-nickelBoat (Dhow)Value1992
100 fils24 mm6 gBrass ring, cupro-nickel centreCoat of ArmsValue1992
Bahrain coins, obverse and reverse

For a wider history surrounding currency in the region, see The History of British Currency in the Middle East.

Banknotes

On October 16, 1965, the Bahrain Currency Board introduced notes in denominations of 14, 12, 1, 5 and 10 dinars; a 100-fils note was introduced on September 2, 1967.[6]

In 1973, the Bahrain Monetary Agency took over the issuance of paper money, and starting in July 1978 with a 20 dinar note, it introduced a new family of notes dated 1973 in Arabic. Denominations of 12, 1, 5 and 10 dinars were released on 16 December 1979. The 100-fils note of the Bahrain Currency Board was withdrawn in November 1980 and the remainder of the notes were withdrawn on 31 March 1996, remaining exchangeable until one year afterwards.[2]

The third issue of notes (the second by the Bahrain Monetary Agency) with the same denominations of 12 to 20 dinars was released in March 1993.[7] This series was upgraded during 1998 with various modifications to colour and security features. However, a fake order for banknotes had recently been placed with the Argentinian printer Ciccone Calcografica who did not verify it with the legitimate authorities in Bahrain and obtained genuine banknote paper from Arjo Wiggins to print over 7 million unauthorised replicas of the 20-dinar note (of the 1993 design), equivalent to US$365 million.[8] These differed from genuine notes in two respects: different background shading to the Arabic name of the Bahrain Monetary Agency, and a large gap between the two Arabic letters in the horizontal serial number.[9]

The unauthorised notes were smuggled through various African and European countries by air and presented for exchange in Belgium, Switzerland and the Gulf around June 1998, just as the upgraded 20-dinar note was being released in Bahrain. The large amounts raised suspicions and were soon detected as notes that had not been printed by the authorised printer, De La Rue. The Bahrain Monetary Agency allowed individuals who had mistakenly accepted the unauthorised notes to exchange them for face value at banks between 8-14 June 1998, then quickly recalled all 20-dinar notes on 30 July 1998. The unauthorised notes, being replicas of the 1993 design, were in purple and without a hologram. Despite this the upgraded notes, also in purple but with a hologram, that had been released in June 1998 were also withdrawn. On 1 August 1998 a new 20-dinar note, of the same design as the upgraded note (with a hologram) but in peach colour, was released. Thus, the genuine June 1998 design was only in circulation for about 7 weeks and is therefore rarely seen by collectors.[10] All other banknotes of the Bahrain Monetary Agency remain exchangeable.

On 7 September 2006,[6] the Bahrain Monetary Agency was renamed the Central Bank of Bahrain. On 17 March 2008, the Central Bank of Bahrain introduced its first series of notes (Bahrain's 4th series) reflecting the country's heritage as well as its modern development.

On 4 September 2016, the Central Bank of Bahrain introduced upgraded versions of the 10- and 20-dinar notes with enhanced security features (SPARK and Motion thread) and tactile lines added at center right front for the visually impaired.[11][12]

4th series (154mm x 74mm)
ImageValueMain ColourFront SideBack Side
12 dinar Brown/Peach Old Bahrain Court Bahrain International Circuit
1 dinar Red Al Hedya Al Khalifiya School (Bahrain first school) Galloping Arabian Horses and the Sail and Pearl monument
5 dinars Blue Shaikh Isa House in Muharraq and Riffa Fort First oil well in Bahrain and Aluminum Bahrain (Alba)
10 dinars Green Sheikh Hamad ibn Isa Al Khalifah (Bahrain King) Shaikh Isa Bin Salman Al Khalifa Causeway
20 dinars Brown/light blue Sheikh Hamad ibn Isa Al Khalifah (Bahrain King) Al Fateh Islamic Center

See also

  • Gulf rupee
  • Economy of Bahrain
  • Cooperation Council for the Arab States of the Gulf

References

  1. Exchange Rate Policy, Bahrain Monetary Agency Archived June 15, 2006, at the Wayback Machine
  2. "The Banknotes of Bahrain". www.pjsymes.com.au.
  3. "Central Bank of Bahrain - Current Coins 500 Fils". web.archive.org. March 15, 2012. Archived from the original on 2012-03-15.
  4. "Bahrain coin may become collector's item". www.tradearabia.com.
  5. "Current Coins | CBB". www.cbb.gov.bh.
  6. Linzmayer, Owen (2011). "Bahrain". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. Retrieved 2011-08-21.
  7. "Archived copy". Archived from the original on 2017-09-05. Retrieved 2017-09-18.CS1 maint: archived copy as title (link)
  8. "Página/12". www.pagina12.com.ar.
  9. "Bahrain - 20 Dinar Notes". www.pjsymes.com.au.
  10. "Archived copy". Archived from the original on 2018-03-17. Retrieved 2017-09-18.CS1 maint: archived copy as title (link)
  11. "Bahrain new 10- and 20-dinar notes (B309, B310) reported". Banknote News.
  12. "Upgraded BD20 & BD10 of fourth issue 2016".

Sources

  • Krause, Chester L.; Clifford Mishler (1991). Standard Catalog of World Coins: 1801–1991 (18th ed.). Krause Publications. ISBN 0873411501.
  • Pick, Albert (1994). Standard Catalog of World Paper Money: General Issues. Colin R. Bruce II and Neil Shafer (editors) (7th ed.). Krause Publications. ISBN 0-87341-207-9.
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