Forex trading is legal in Bahrain under the regulatory framework established by the Central Bank of Bahrain. The Kingdom has a free market economy with no restrictions on capital movements, foreign exchange, foreign trade, or foreign investment (1). Bahrain maintains a fixed exchange rate regime between the Bahraini dinar and the US dollar at 0.376 Bahraini dinars per dollar, and this exchange rate peg provides an anchor for monetary policy which contributes to controlling inflation and protecting the external value of the currency.
The Central Bank of Bahrain was established in 2006 and serves as the main regulator of the financial sector in Bahrain, covering banking, insurance, investment, and capital markets (2). The CBB is responsible for implementing the Kingdom's monetary and foreign exchange rate policies, managing governmental reserves and debts, issuing national currency, and administering payment and settlement systems. The bank takes relevant international standards as the basis for its supervision, applying Core Principles from Basel Committee and other international standards.
"Bahrain has a free market economy, with no restrictions on capital movements, foreign exchange, foreign trade or foreign investment."
The Reserve Management Directorate of the CBB offers a foreign exchange facility for buying and selling Bahraini dinars against US dollars at rates very close to the official exchange rate (1). The Central Bank provides this facility to retail banks located in the Kingdom of Bahrain and ensures smooth functioning of foreign exchange operations. The CBB also offers an FX Swap Facility to all licensed retail banks with various tenors including one week, one month, three months, six months, and one year.
Source:
https://www.cbb.gov.bh/monetary-policy/
https://fineksus.com/the-central-bank-of-bahrain-cbb/
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
