Send money to Bahrain

 

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Exchange Rates as of 2018-12-12T02:03:06+00:00

OFX (prev. UKForex)

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TorFX

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Est. 2004
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Moneycorp

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Est. 1979
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Global Reach (formerly FC Exchange)

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Currency Solutions

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WorldFirst

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Currencies Direct

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Smart Currency Exchange

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RationalFX

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Est. 2005
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Bahrain Resources

Summary

The Bahrain (BHD) dinar is fully convertible, and overseas money transfers to Bahrain and money transferred from Bahrain can be sent freely. Like its Gulf neighbours, Bahrain allows for the unrestricted international transfer of investment capital, profits, and passive income such as royalties, interest, dividends, and management fees.

Bahrain’s money transfer regulations

The Central Bank of Bahrain (CBB) licenses and supervises financial services firms. As of October 2014, there are 22 licensed retail banks, of which seven are Bahraini and 15 foreign branches of banks based elsewhere in the Middle East, plus Europe and North America. As of August 2014, there are 18 licenced foreign exchange companies operating in the country.

Bahrain’s policies on foreign investment are much more open than other countries in the Gulf such as Kuwait, the United Arab Emirates (UAE), or Qatar. The government is actively seeking foreign direct investment (FDI) in an effort to diversify and expand the private sector, particularly in ICT, financial services, tourism, energy and business services.

Incentives and conditions vary according to sector, and we recommend consulting the sector-specific guidelines set by the country’s Economic Development Board (EDB). The Bahraini Ministry of Finance has also signed 63 bilateral investment agreements, beyond existing GCC agreements, which streamline investment fees and conditions.

Bahrain’s regulatory authority

The CBB sets the country’s monetary policy, monitors the health of the financial system and acts as the sole regulator of the Bahraini banking sector. The CBB also monitors the foreign exchange market in order to preserve the stability of its currency, the Bahraini dinar.

Bahrain is a member of the six-country Gulf Cooperation Council (GCC), which also includes Qatar, UAE, Kuwait, Oman and Saudi Arabia. The GCC is a loose regional association that aims to advance regional political and economic integration. The GCC Monetary Council, headquartered in Riyadh, Saudi Arabia, provides a platform for member countries to discuss and coordinate monetary policy, but there are few significant differences.

Five member countries, including Bahrain, have pegged their currencies to the US dollar (USD). The CBB maintains a fixed exchange rate of BHD0.376:USD1. Kuwait introduced a USD peg between 2003-2007, but then reverted back to a managed float where the Kuwaiti dinar is referenced to a weighted basket of currencies. A project to establish a GCC monetary union has been suggested on numerous occasions, but faltered due to insufficient support. As of 2014, a potential currency union is still far from becoming reality.

Tax and property issues

In line with other oil-rich countries in the Gulf, Bahrain does not apply corporate tax for most sectors of the economy, regardless of where companies are incorporated. However, both foreign and domestic firms engaged hydrocarbons exploration, production or refining are subject to a 46% tax on net profits. Passive income including capital gains, dividends, interest and royalties are untaxed.

Currency

The Bahraini dinar uses the currency code BHD and is frequently abbreviated as BD. One dinar is equivalent to 1,000 fils. Banknotes are produced in denominations of 500 fils (BD0.500), as well as 1, 5, 10 and 20 dinars. Coins are available in values of 5, 10, 25, 50 and 100 fils. (The 500 fil coin was discontinued after the social uprising in February 2011, as it depicted the square where protests were concentrated).

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