Bahrain's Currency Board was established in 1964 specifically to replace the Gulf Rupee, a currency that had circulated across the Persian Gulf states under Indian monetary authority. The 1965–1966 issues were among the first coins struck under Bahraini administrative control, issued in the name of Ruler Isa bin Salman Al Khalifa, who had taken power the previous year following his father's death. The Gulf Rupee's withdrawal was accelerated by India's 1966 devaluation, which would have dragged Gulf state purchasing power down with it had the transition not already been underway.
Bahrain's Currency Board was established in 1964 specifically to replace the Gulf Rupee, a currency that had circulated across the Persian Gulf states under Indian monetary authority. The 1965–1966 issues were among the first coins struck under Bahraini administrative control, issued in the name of Ruler Isa bin Salman Al Khalifa, who had taken power the previous year following his father's death. The Gulf Rupee's withdrawal was accelerated by India's 1966 devaluation, which would have dragged Gulf state purchasing power down with it had the transition not already been underway.