Story the national currency 1965

His Highness Sheikh Khalifa felt that the year 1964 was the right time to achieve that wish that lingered on his mind for a long time; he wished for a Bahraini national currency carrying the logo and the symbol of this country and its dear name. The currency for any country does not mean just coins or papers that are minted for circulation; it also means part of the global system of exchange determined by the value of known criterion. Many expressed fears of the failure of the idea or the difficulty of implementation.

It should be noted that this hope was also in the mind of the late Sheikh Salman since he assumed power, as documents confirm that a note was sent by His Highness to the government February 18, 1949 which stated: "you must recall that there was a period of brainstorming about the currency that we will issue for circulation in Bahrain and, by God willing, we will succeed. I think it is appropriate to attend to this matter so quickly, and if we need a technical expert, we can order him from London to take advantage of his expertise, and our currency can then be linked to the pound sterling currency. Therefore, I would appreciate if you could attend to this matter as soon as possible. This is what we needed to clarify, peace be upon you. "

Perhaps this is one of the comparisons that confirm the extension and continuation of political ideology between the Father, His Highness Sheikh Salman bin Hamad, and the son, His Highness Sheikh Khalifa bin Salman.

The history of the evolution of the monetary system in Bahrain is considered one of the records that contain an objective narration of the substantive stages undergone by the country's history. There is unanimity among scholars and historians that Bahrain was one of the first Gulf countries that knew the use of currency in different forms to regulate the trade and financial transactions, whether in the area of external or domestic trade. The old Romanian currency has remained the means of financial transactions in the Gulf region for a long period that lasted till the beginnings of the last century, when the Austrian Dollar, which was known as "Maria Teresa" Riyal, became the most commonly used currency in the region. In addition to the Austrian Dollar, there were Turkish Lira, the Indian Rupee and some other currencies.

However, the growing volume of trade between Bahrain and India, especially in pearls trade, made the Indian Rupee more likely to be the most frequently used currency in Bahrain. This has been helped by the fact that the Austrian Dollar was a very old currency and it was extremely difficult to transfer it into Rupees; one Australian Dollar is worth one Rupee, five Bezat and five Anat. Therefore, it was not normal to keep this old currency in control of monetary system in Bahrain. Thus, the Indian Rupee has turned from a mere currency for circulation in Bahrain and accessories in 1818, to be the official currency of the country in 1880.

The case remained as is until the early 1950s of this century, when India was subjected to large-scale smuggling that aimed to transporting gold to the Indian Territory illegally. The smugglers sold the gold with Rupees and then transfer their profit outside India to transfer it to hard currency. This resulted in huge profits, but the smuggling of gold and foreign exchange trade resulted in weakening the position of the Rupee and damaging the Indian economy in a substantial way. In an effort to combat this phenomenon, the Indian government in 1955, issued a currency similar to the Indian Rupees, known as the "Gulf Rupee", in order to make it a special currency for the Gulf region alone.

On February 18, 1957, the Governor of Bahrain has agreed on the Indian Currency modified decree, and on March 13, 1957, all the Bahraini banks agreed to announce that day a national holiday on the occasion of the introduction of the decimal currency, so as to facilitate the transfer of the accounts to the new currency. But the majority of the Bahraini employees continued to receive their salaries in the old currency for several months, because there were not enough of the new currency for the payment of salaries and wages.

With the onset of the month of July of that same year, forged monetary currencies emerged of the category of one hundred Rupees. But because of its poor forgery, it was easily noticed and its serials were detected quickly.

To protect the capital market in Bahrain, the government announced on March 30, 1963 the rejection of the circulation of coins bearing the "head of the King" as of that day. This announcement has obliged all those who have this kind of coin to exchange it within a week at the Eastern Limited Bank, now known as "Chartered Bank". After the expiry of the deadline, the entry of such currency to the country was forbidden.

Then came the 1964 that witnessed the first fruits of the efforts made by His Highness Sheikh Khalifa over the previous years. The fruit was the establishment of the Bahraini Monetary Council, which began practicing its duties under extremely difficult conditions; the most intense competition was the intense competition between different types of currencies. The establishment of this Council was a truly important turning point in the history of Bahrain's economy in general, and the history of its currency in particular. The Council resolutions came in succession aiming to organize the monetary conditions in the country. In the context of the decision to use the Rupee, the President of Finance in the government, Sheikh Khalifa Bin Salman, issued a declaration on the 6th of October 1965 on "the importation of currency to Bahrain".

Upon that declaration, the importation of the currency known as Gulf Rupee, and the metal coin known as Gulf Coins was prohibited. The Declaration identified how much Gulf Rupees could be imported per capita entering Bahrain via the official offices, on the condition that this amount does not exceed one thousand Rupees. The metal coins were set by the Declaration to be no more than five Rupees. Furthermore, in the general sense of belonging to the homeland and the countrys course towards securing its economic interests, the Bahraini Monetary Council announced a verdict to cancel the use of the Indian Rupee, and also announcing the issuance of a Bahraini National Currency during 1965. At that year, His Highness Sheikh Khalifa appointed a President of the Council, which included the members: Mr. Mahmoud Ahmad Al Alawi, Mr. Ahmed Yousif Fakhro, Mr. Ahmed Ali Kanu, and Mr. Ali Abdul Rahman Al-Wazzan and Mr. S. Lomb.

Based on the presentation of His Highness Sheikh Khalifa bin Salman, Chief of Finance, of what has been taken towards the issuance of a national currency, His Highness Sheikh Isa Bin Salman, the Governor of Bahrain, issued two degrees in the 17th of October; the first is Decree No. "9finance" that specifies shape, design and color. The second decree carried the name: No. "10 finance" for 1965 and was also called the Bahraini Monetary Degree ("the fixed date"). The second degree set the 17th of October 1965 as the date of issuing the new Bahraini currency and to complete the arrangements to ensure the stability of the situation for the benefit of the new currency. The decree (10finance) sets the period in which people can replace the currency circulating in the markets with the new Bahraini currency, which begins from the designated day, the 17th of October until the 22nd of October 1965. The volume of the first issue of the new currency was 8.7 millions Bahraini Dinars.

The happiness of His Excellency His Highness Sheikh Isa Bin Salman, the governor of the country, was overwhelming as he was pursuing the issuance of the first national currency. He expressed his great thanks and gratitude for Sheikh Khalifa bin Salman, Head of the Bahraini Monetary Council, for his efforts to accomplish this distinguished national work for the Bahraini economy, according to the text of the statement made by Sheikh Isa on this occasion.

His Highness Sheikh Khalifa bin Salman remembers with much happiness and satisfaction the strenuous efforts made to issue a national currency in the country. In this regard, he paid tribute to the efforts and dedication of many national figures, who stood at his side to turn the dream into reality. Among these figures was in particular Mr. Mahmoud Al Alwawi, whom he described as a teacher, a milestone and sincere friends.