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Professor Ali Gamal Abdelgawad:  USD/BHD Analysis: US Dollar vs. Bahraini Dinar

 

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance

 USD/BHD Analysis: US Dollar vs. Bahraini Dinar

 

Current Prices:

 

Current Price: 0.3770 BHD/USD

 

Daily Change: 0.00% (Completely Stable)

 

Today's Range: 0.3770 - 0.3770 BHD

 

52-Week Range: 0.3766 - 0.3775 BHD

 

Historical Performance

 

The USD/BHD pair shows remarkable stability across all timeframes:

 

Daily, Weekly, Monthly, 3 Months, 6 Months: No significant changes

 

Annually: Slight increase of +0.01%

 

Five Years: Slight decrease of -0.01%

 

This reflects the complete stability of the Bahraini dinar against the US dollar, a result of the long-standing policy of pegging the dinar to the dollar.

 

Technical Analysis

 

The daily chart shows a very narrow trading range around 0.377 BHD.

 

Support Level: 0.3766 – 0.3770 Bahraini Dinar

 

Resistance Level: 0.3770 – 0.3775 Bahraini Dinar

 

This stability reflects the absence of any significant buying or selling pressure on the Bahraini Dinar and confirms the effectiveness of the Central Bank of Bahrain's monetary policy in maintaining the currency's value.

 

Influencing Economic Factors

 

The fixed peg of the Dinar to the US Dollar: This policy ensures price stability and limits any significant fluctuations.

 

Foreign reserves and the domestic economy: Oil inflows and government revenues support the strength of the Dinar.

 

The Bahraini economic situation: Stable economic growth and low inflation reinforce currency stability.

 

Global factors: The movement of the global US Dollar has a very limited impact on the Bahraini Dinar due to the fixed peg.

 

Future Outlook

 

Short and medium term: The price is expected to remain stable at 0.377 Dinar/US Dollar with any very minor changes.

 

Long term: The continued peg to the US Dollar maintains the stability of the Bahraini Dinar, making it one of the most stable currencies globally.

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