The Central Bank of Bahrain is a public corporate entity established by the Central Bank of Bahrain and Financial Institutions Law 2006. It was created on 7th September 2006.
The Central Bank of Bahrain is responsible for maintaining monetary and financial stability in the Kingdom of Bahrain. It succeeded the Bahrain Monetary Agency, which had previously carried out central banking and regulatory functions since its establishment in 1973 (shortly after Bahrain secured full independence from Great Britain).
The Central Bank of Bahrain inherits the BMA’s 33-year track record and wide range of responsibilities. It implements the Kingdom’s monetary and foreign exchange rate
policies, manages the government’s reserves and debt issuance, issues the national currency (Bahrain dinar
) and oversees the country’s payments and settlement systems. It is also the sole regulator of Bahrain's financial sector, covering the full range of banking, insurance, investment business and capital markets activities.
The Central Bank of Bahrain’s wide scope of responsibilities allows a consistent policy approach to be undertaken across the whole of the Kingdom’s financial sector. It also provides a straightforward and efficient regulatory framework for financial services firms operating in Bahrain.
The Central Bank of Bahrain’s mandate is prescribed in the Central Bank of Bahrain and Financial Institutions Law 2006.
Article 3 of the law defines the Central Bank of Bahrain’s objectives as:
- Set and implement monetary, credit and other financial sector policies for the Kingdom of Bahrain;
- Provide effective central banking services to the Government and financial sector of the Kingdom;
- Develop the financial sector and enhance confidence therein;
- Protect the interests of depositors and customers of financial institutions, and enhance the Kingdom’s credibility as an international financial centre;
Article 4 of the same law specifies various specific duties and powers of the Central Bank. They include:
- the issuance of the national currency;
- the licensing, regulation and supervision of persons undertaking regulated financial services;
- the provision of banking services to the Government;
- managing the Kingdom’s gold and foreign currency reserves;
Collectively, these provisions are supplemented by a vision and mission statement.
- Currency of Bahrain:
- Bahrain dinar
- List of Central Banks:
- Central Banks
- Official website of Central Bank of Bahrain:
- Bahrain’s Ministry of Finance:
- Bahrain Customs:
- Bahrain Economic Development Board: