The Bahraini dinar has been ranked as one of the five strongest currencies in the world in January 2025, coming second after the Kuwaiti dinar, according to a report by a US economic website.

The Bahraini dinar is worth $2.65 and has traded between $2.54 and $2.65 over the past year.

It is so stable because it is officially pegged to the US dollar, Investopedia wrote. Factors in a currency’s value include its supply, interest rates, and inflation.

However, the biggest reasons are found in the broader economic picture: political stability attracts foreign investors, natural resource wealth drives international demand, and monetary policies can directly influence exchange rates when a country’s central bank directly intervenes in global exchange markets, the website affirmed.

Bahrain’s economy is more diverse than some other nations on the list, with significant economic activity in banking, finance and tourism, along with the oil industry, it added.

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