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The Bahraini Dinar (BHD) is the 2nd highest valued currency unit in the world, next to the Kuwaiti Dinar. Despite the turbulent financial crisis that engulfed all nations, the Bahraini is able to retain its no. 2 position because of a fixed pegging. One Bahraini is pegged at about 2.65259 US Dollar, or 1 US Dollar (USD) compared against 0.376 Bahraini Dinar (BHD).

In practicality however, you will not be able to use the Bahraini dinar when making purchase in the US, even if the converse is true. The currency pegging is not comparable to what Singapore has with Brunei for example, where currencies in these countries are generally accepted at face value. In addition, due to the geography distance, a Bahraini tourist to the United States will find it hard to change Bahraini dinar into US Dollar at a considerable discount, usually at 3%. Therefore, most Bahraini will use credit cards when spending in the United States.

It is unlikely for Bahrain to remove the pegging to US Dollar in the near term, especially when global financial markets have just started the path to recovery since late 2008. The forecast is for the pegging trend to continue for at least 5 more years. With the Europeans already aggregating into the Euro and China and India keen to rival the US Dollar, it may be a possibility where oil rich nations in the Middle East band together and create a common Middle East currency as well, in the medium term. If that happens, it will be a major setback to US Dollar and US will finally wake up to reality and collapse from its debt.