BHD to PKR: Bahraini Dinar Surges as January Ends
- By Web Desk -
- Jan 31, 2026
As of January 31, 2026, the Bahraini Dinar (BHD) has demonstrated a late-month rally against the Pakistani Rupee (PKR), with the interbank exchange rate reaching 745.50. This marks a notable shift for the Pakistani community in Bahrain, as the currency gained significant ground in the final week of the month. After maintaining a relatively stable range near 741.32 earlier in the week, the Dinar’s 0.56% climb in just a few days highlights the continued sensitivity of the Rupee to month-end economic pressures. On a monthly scale, the Rupee has slipped by roughly 0.44%, moving from an opening rate of 742.26 on January 1st to today’s high.
The Bahraini Dinar holds the prestigious title of the second-strongest currency in the world. Much like its neighbors in the GCC, its value is anchored by a fixed peg to the US Dollar (1 BHD = 2.659 USD), providing a level of financial certainty that few other currencies can match. Conversely, the Pakistani Rupee (PKR) remains a floating currency. Its value is a reflection of Pakistan’s current account balance, foreign investment inflows, and the status of its foreign exchange reserves, which often leads to the kind of volatility seen in this week’s sudden spike.
Expat Insight and Market Commentary
For the roughly 120,000 Pakistanis living and working in the Kingdom of Bahrain, the current exchange rate represents a prime opportunity for remittances. A transfer of BHD 200 today converts to approximately 149,100 PKR, which is nearly 700 PKR more than the same transfer would have yielded just five days ago. This weekend bonus is particularly useful for families back home dealing with the rising costs of utilities and seasonal expenses in Pakistan.
While the interbank rate sits at 745.50, expats should anticipate slightly higher rates in the Open Market, where the Dinar may trade between 748 and 752 PKR depending on the exchange house and local demand. For those looking to invest in Pakistani savings certificates or real estate, these end-of-month peaks often provide the best bang for your buck. However, stay mindful that a weaker Rupee can lead to higher import costs for Pakistan, so while your Dinar goes further, the cost of goods in Karachi or Lahore may also be on the rise.