Bahraini Dinar Weakens Against Pakistani Rupee on May 22, 2025

Karachi/Manama, May 22, 2025: The Bahraini Dinar (BHD) experienced a slight decline against the Pakistani Rupee (PKR), trading at 744.79 PKR today, down from yesterday’s rate of 747.79 PKR, according to data from major currency exchanges. This depreciation of approximately 0.4% reflects ongoing market dynamics influenced by economic factors in both Bahrain and Pakistan.

1 Bahraini Dinar= 744.79 PKR

Valuation Process

The exchange rate between the Bahraini Dinar and Pakistani Rupee is determined by the foreign exchange market, where currencies are traded based on supply and demand. The Bahraini Dinar, pegged to the US Dollar at a fixed rate of 1 BHD = 2.65 USD, is relatively stable compared to free-floating currencies like the PKR. The Pakistani Rupee, on the other hand, is subject to fluctuations driven by market forces, including trade balances, foreign investment, and domestic economic policies.

The valuation process involves banks, financial institutions, and forex dealers quoting buy and sell rates based on interbank rates and market conditions. Today’s drop in the BHD-PKR rate suggests a relative strengthening of the PKR, potentially due to improved investor confidence in Pakistan’s economy or changes in demand for Bahraini Dinar in regional trade.

Impact of the Depreciation

The decline in the BHD’s value against the PKR could have mixed implications. For Bahraini businesses and expatriates sending remittances to Pakistan, the lower exchange rate means fewer Pakistani Rupees per Dinar, reducing purchasing power for recipients. Conversely, Pakistani exporters to Bahrain may benefit, as their goods become relatively cheaper in Dinar terms, potentially boosting trade.

For Pakistan, a stronger PKR could help curb imported inflation, particularly for goods priced in foreign currencies, including oil from Gulf countries like Bahrain. However, the impact is likely limited given the small magnitude of the change and the fixed peg of the BHD to the USD, which anchors its broader stability.

Analysts suggest monitoring macroeconomic indicators, such as Pakistan’s foreign exchange reserves and Bahrain’s oil-driven economy, to gauge whether this trend will persist. “A 0.4% shift is notable but not alarming,” said a currency analyst at a leading Bahraini bank. “It reflects short-term market adjustments rather than a structural shift.”

Introduction to the Currencies

The Bahraini Dinar (BHD) is the official currency of the Kingdom of Bahrain, introduced in 1965 to replace the Gulf Rupee. It is one of the strongest currencies globally due to its peg to the US Dollar and Bahrain’s robust oil-based economy. The Dinar is subdivided into 1,000 fils and is widely used in the Gulf region for trade and investment.

DOLLAR RATE TODAY IN PAKISTAN- LIVE

The Pakistani Rupee (PKR) is the official currency of Pakistan, introduced in 1948 after the country’s independence. Subdivided into 100 paisa, the PKR is a free-floating currency managed by the State Bank of Pakistan. Its value fluctuates based on economic conditions, including inflation, trade balances