The Bahraini dinar is the official currency of Bahrain, a small island country in the Persian Gulf. It was introduced in 1965 to replace the Gulf rupee and has since become one of the highest-valued currencies in the world. The ISO 4217 code for the Bahraini dinar is BHD, and it is divided into 1000 fils. The dinar is pegged to the US dollar, with a fixed exchange rate of 1 BHD = 2.652 USD.