Islamabad, June 26, 2025: The Bahraini Dinar (BHD) has demonstrated a notable appreciation against the Pakistani Rupee (PKR) this month, reaching 751.94 PKR as of June 26, up from 751.23 PKR on June 23. This marks a steady climb from 744.79 PKR recorded on June 8, reflecting a significant 0.88% increase over the first half of the month, according to data from major currency exchanges.
The strengthening BHD carries multifaceted implications for both economies. For Bahrain, a stronger dinar enhances purchasing power for imports from Pakistan, potentially benefiting consumers and businesses reliant on Pakistani goods.
Conversely, it could pose challenges for Bahraini exporters as their goods become more expensive for Pakistani buyers. In Pakistan, the weakening PKR increases the cost of imports from Bahrain, including essential oil and petroleum products.
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It may exacerbate inflationary pressures given the country’s reliance on energy imports. This depreciation could also impact remittances from Bahraini-based Pakistani expatriates, as their earnings convert to fewer rupees when sent home.
The exchange rate dynamics are influenced by contrasting monetary policies. The Bahraini Dinar is pegged to the US dollar, tying its value to US monetary policy and global dollar trends. It has recently bolstered the BHD due to higher US interest rates.
In contrast, the Pakistani Rupee operates under a managed float. Influenced by market forces, Pakistan’s trade deficit, foreign exchange reserves, and domestic inflation contribute to its volatility and recent depreciation against the BHD.
The Bahraini Dinar, introduced in 1965 and pegged to the US dollar. It is recognized as one of the world’s strongest currencies, reflecting Bahrain’s stable, oil-driven economy.
The Pakistani Rupee has been managed by the State Bank of Pakistan since 1948. It fluctuates based on economic conditions like trade balances and remittance inflows.
Market analysts are closely monitoring the BHD’s continued upward trend. Also, it has a broader impact on trade and economic ties between the two nations.
