Manama — Bahrain›s dinar recovered from 17-year lows and its bond prices rebounded on Wednesday after Saudi Arabia, Kuwait and the United Arab Emirate (UAE) said on Tuesday they will unveil an integrated program to support Bahrain’s economic reforms and its fiscal stability.

“It’s time to buy Bahrain,” Barclays said in an analyst report, predicting the aid pledge would ease international investors’ worries.

The dinar bounced to 0.37850 against the US dollar in early spot market trade. On Tuesday, it had dropped as low as 0.38261, moving away from its official peg of 0.37608.

The currency also recovered in the forwards market, which reflects expectations for its value in coming months. One-year dollar/dinar forwards fell to 210 points from Tuesday’s peak of 408 points, their highest since September 2016.

The rebounding dinar prompted investors to buy back Bahraini debt. The yield on its international bond maturing in August 2023 plunged to 7.58 percent from 8.95 percent — though it stayed far above early 2018 levels of 5.22 percent.

Saudi Arabia, the United Arab Emirates and Kuwait said in a statement released shortly before midnight on Tuesday that they were in discussions on aid for Bahrain and would consider all options to support the country.

They promised “an integrated program that will soon be announced to enable the Kingdom of Bahrain to support its economic reforms and fiscal stability.”

Bahrain’s Minister of Finance Sheikh Ahmed Bin Mohammed Al Khalifa thanked Saudi Arabia, the UAE, and Kuwait for their continued support.

He said such initiatives represent the strength of long-standing ties between Bahrain and all three countries, which are underpinned by a shared commitment to achieve strategic goals and interests. — Agencies