Bahraini Dinar

The Bahraini Dinar goes back to 1965 and saw Bahrain as a protectorate of the British government. Their interest in Bahrain was to separate the island from Iran and was not focused on the Dinar currency. The conclusion of World War II led to an anti-British sentiment and Bahrain was plagued by riots. Bahrain officially gained their independence in 1971 when the British withdrew from the region.

Even before this, the Bahraini dinar was introduced in 1965 as the official currency of the Bahrain. It replaced the gulf rupee at a rate of 1 dinar equal to 10 rupees and was the currency exchanged. Although the first commercial bank in Bahrain, a branch of the British owned Eastern Bank, was established in 1921 the lack of a native currency kept the banking sector from developing in this region.

In 1957 the first bank owned by Bahraini citizens, the National Bank of Bahrain, was established. The introduction of the Bahraini Dinar in 1965 helped to increase the banking activity in the area and by the year 1974 Bahrain had fourteen banks in operation trading currency.

Bahrain Monetary Agency

With an increase in the interest of banks investing in the island of Bahrain the government decided it was necessary to establish an agency to regulate banking activities. The Bahrain Monetary Agency (BMA) was established in the year 1973. The Bahraini dinar is issued by the BMA and in addition they also have the powers to set the official exchange rates for the Bahraini dinar and receive the government funds that are deposited.

Currency Trading with Bahraini Dinar

The Bahraini dinar includes both coins and banknotes that are used in general circulation. The Bahraini dinar is divided into 1000 fils. The coins in circulation include the 10, 25, 50, 100 and 500 fils. There are also banknotes in circulation including the 500 fils as well as the 1, 5, 10, 20 dinars.

Investing in the Bahraini Dinar

The approximate currency exchange rate of the Bahraini dinar is one United States dollar is equal to 0.3769 Bahraini dinar. Despite the turbulence that surrounds this small island nation, there is a great deal of stability in the country of Bahraini. This is clearly indicated when viewing the variance of the exchange rate of the Bahraini dinar over the past five years.

There has been very little change in this rate during this time, making an investment in the Bahraini dinar not likely to result in either significant losses or gains. Although there is always some risk in any investment the Bahraini dinar has been stable in recent his

* This post from Iraqi-dinar.org