A steady flow of money takes places between the United States and Bahrain regularly. While there is no specific data surrounding remittances that enter Bahrain, around U.S. $3 million was sent from Bahrain to the United States in 2016 alone. In 2017, bilateral trade of goods between both nations accounted for over U.S. $1.89 billion.
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The U.S. dollar has served as the official currency of the United States since 1792. Now, it is also used as legal tender in the Caribbean, the British Virgin Islands, two British Overseas Territories, Turks and Caicos Islands, as well as Zimbabwe. Its unofficial use is seen in places such as Haiti, Panama, Belize, Costa Rica, Cambodia, Myanmar, and Nepal.
The U.S. dollar takes the number one spot in the basket of global reserve currencies. It is also the most commonly traded currency the world over. In April 2016, its share of the global foreign exchange market turnover exceeded 87%. An estimated U.S. $5 trillion makes its way through the forex market every day.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
The word “dinar” is derived from the Roman “denarius”. Bahrain introduced the Bahraini dinar in 1965. It replaced the then in use Gulf rupee at the rate of 1 dinar = 10 rupees. Since the dinar is divided into 1000 fils, it is typically represented using three decimal places.
The dinar was officially pegged to the International Monetary Fund’s (IMF’s) special drawing rights (SDRs) in December 1980. Since then, its exchange rate is fixed at U.S. $1 = BHD 0.376. Conversely, BHD 1 = U.S. $2.65957.
The use of Saudi riyals is common in Bahrain. In September 2018, the Bahraini dinar held the position of the second highest valued currency unit in the world.
|Bank notes||BHD 1/2, BHD 1, BHD 5, BHD 10, BHD 20|
|Coins||5, 10, 25, 50, 100 fils, BHD 1/2|
U.S. Dollar / Bahraini Dinar Historical Rates
Given that the Bahraini dinar is pegged to the U.S. dollar, the USD/BHD exchange rate remains near constant. The peg gives Bahrain the ability to maintain a stable monetary policy, which, in turn, enables the Central Bank of Bahrain to protect the dinar’s value and keep inflation levels in check.
While the Bahraini dinar is pegged at the rate of U.S. $1 = BHD 0.376, its exchange rate tends to hover around U.S. $1 = BHD 0.3770. In addition, the USD/BHD exchange rate has fluctuated slightly at certain points in time. For instance, the Bahraini dinar traded at U.S. $1 = BHD 0.3750 in November 2007, and at U.S. $1 = BHD 0.3789 in September 2017.
USD/BHD in the last five years
|U.S. $1 =|
|1 July, 2013||BHD 0.3770|
|1 July, 2014||BHD 0.3770|
|1 July, 2015||BHD 0.3770|
|1 July, 2016||BHD 0.3771|
|1 July, 2017||BHD 0.3772|
USD/BHD in the last five months
|U.S. $1 =|
|1 April, 2018||BHD 0.3770|
|1 May, 2018||BHD 0.3777|
|1 June, 2018||BHD 0.3785|
|1 July, 2018||BHD 0.3781|
|1 August, 2018||BHD 0.3772|
What Affects USD/BHD Rates?
If the Central Bank of Bahrain hopes to maintain the dinar’s peg to the U.S. dollar without devaluing its currency over the long run, it might have to consider implementing different types of financial reforms. Factors that may have a bearing on how the USD/BHD currency pair performs over extended periods of time include monetary policies of the two countries, as well as their gross domestic products (GDPs), trade balances, international debt, interest rate changes, inflation levels, and unemployment levels.
Sending money from Bahrain to the United States or the other way around requires that you look beyond the USD/BHD exchange rate that you get. Given the peg that connects both currencies, there might be little difference in exchange rates provided by different money transfer companies. However, you still need to account for the fees you end up paying.