Karachi/Manama: June 16, 2025: The Bahraini Dinar (BHD) has continued its upward trend against the Pakistani Rupee (PKR), reaching a new high of 750.19 PKR on Friday. This marks a steady climb from previous days, including 749.72 PKR on June 13, 748.55 PKR on June 11, and a notable jump from 744.79 PKR recorded on June 8.
The sustained rise in the value of the Bahraini Dinar reflects broader economic dynamics affecting both countries, particularly in terms of inflation, interest rates, foreign exchange reserves, and trade balances.
1 BHD= 750.19 PKR
Understanding the Valuation Mechanism
Currency valuation is primarily determined by supply and demand in the foreign exchange market, influenced by several macroeconomic factors:
Interest Rates: Higher interest rates typically attract foreign capital, increasing demand for the currency.
Inflation Rates: Lower inflation supports stronger currency value as purchasing power is preserved.
Economic Stability: Political stability, growth indicators, and fiscal discipline enhance investor confidence.
Trade Balances: A trade surplus can increase demand for a country’s currency.
Central Bank Policies: Interventions by central banks can stabilize or influence exchange rates.
In this case, the Bahraini Dinar benefits from a relatively stable economy, supported by oil revenues and prudent monetary policy by the Central Bank of Bahrain. Meanwhile, the Pakistani Rupee continues to face pressure due to ongoing balance of payments challenges, inflationary pressures, and limited foreign exchange reserves.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
Impact on Trade and Remittances
The strengthening of the BHD against the PKR has significant implications:
Pakistani Importers: Import costs from Bahrain have increased, potentially raising prices for goods imported from Bahrain and other Gulf Cooperation Council (GCC) countries.
Overseas Workers: Pakistani expatriates working in Bahrain will see higher remittance values when sending money home, boosting inflows into the domestic economy.
Tourism & Education: Pakistani travelers and students planning to visit Bahrain may face increased expenses due to the rupee’s depreciation.
A Brief Introduction to the Currencies
Pakistani Rupee (PKR): The official currency of Pakistan, subdivided into 100 paisa or 1,000 halalah. It is issued by the State Bank of Pakistan and has faced persistent depreciation over recent years due to economic instability and external debt obligations.
Bahraini Dinar (BHD): The national currency of Bahrain, pegged to the US Dollar at a fixed rate since 1980. It is one of the highest-valued currencies globally and is subdivided into 1,000 fils or 100 piastres. The dinar is backed by strong financial institutions and a diversified economy anchored by oil, banking, and tourism sectors.
The rising value of the Bahraini Dinar against the Pakistani Rupee underscores the divergent economic trajectories of the two nations. While Bahrain maintains a robust and stable financial system, Pakistan continues to navigate through a period of economic adjustment. Analysts suggest that until structural reforms take root and foreign exchange inflows improve, the rupee may continue to face downward pressure in the international markets.
