Bahamian dollar

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Bahamian dollar
ISO 4217 code BSD
Central bank The Central Bank of The Bahamas
 Website www.centralbankbahamas.com
User(s)  The Bahamas
 Turks and Caicos Islands (alongside the United States dollar from 25 May 2013)
Inflation 2.4%
 Source The World Factbook, (2007 est.)
Pegged with U.S. dollar at par
Subunit
 1/100 cent
Symbol B$
Coins
 Freq. used 1, 5, 10, 25 cents
 Rarely used 15 cents, 50 cents, 1 dollar, 2 dollars, 5 dollars
Banknotes
 Freq. used $1, $5, $10, $20, $50, $100
 Rarely used $1/2, $3

The dollar (sign: $; code: BSD) has been the currency of The Bahamas since 1966. It is normally abbreviated with the dollar sign $, or alternatively B$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.

Relationship with the U.S. dollar

The Bahamian dollar is pegged to the U.S. dollar on a one-to-one basis. The Central Bank of The Bahamas states that it uses reserve requirements, changes in the Bank discount rate and selective credit controls, supplemented by moral suasion as main instruments of monetary policy, the objective of which is to keep stable conditions, including credit, in order to maintain the parity between the U.S. dollar and the Bahamian dollar while allowing economic development to proceed.

Although the U.S. dollar (as any other foreign currency) is subject to exchange control laws in The Bahamas, the parity between Bahamian dollars and U.S. dollars means that any business will accept either U.S. or Bahamian currency and many of the businesses that serve tourists have extra U.S. dollars on hand for the convenience of American tourists.

History

The dollar replaced the pound at a rate of 1 dollar = 7 shillings in 1966. This rate allowed the establishment of parity with the U.S. dollar, due to the sterling/dollar rate then being fixed at £1 = $2.80. To aid in decimalization, three-dollar bills and fifteen-cent coins were created, as three dollars was roughly equivalent to one pound, and fifteen cents to a shilling, at the time of transition.

5 cent coin - 1981
Two sides of a coin. Bahamas: 5 cents 1981
Bahamian Coat of arms Pineapple
5 cent coin - 1968
Two sides of a coin. Bahamas: 5 cents 1968
Queen Elizabeth II Pineapple

In 1966, coins were introduced in denominations of 1, 5, 10, 15, 25, 50 cents and 1 dollar. The 1 cent was struck in nickel-brass, the 5, 10, and 15 cent in cupronickel, the 25 cent in nickel, and the 50 cent and 1 dollar in silver. The 10 cent was scallop shaped, whilst the 15 cent was square. Silver coins were not issued for circulation after 1966. Bronze replaced nickel-brass in the 1 cent in 1970, followed by brass in 1974 and copper-plated zinc in 1985. In 1989, cupro-nickel 50 cent and 1 dollar coins were issued for circulation, although they did not replace the corresponding banknotes.

The current 1, 5, and 25 cent coins are about the same size as their U.S. counterparts but with different metal compositions. The 15 cent coins are still produced by the Central Bank1 but are not commonly used. All coins now bear the Bahamian Coat of Arms on one side with the words "Commonwealth of The Bahamas" and the date. The reverses of the coins show objects from Bahamian culture with the value of the coins in words. The 1 cent has a starfish, the 5 cent a pineapple, the 10 cent two bonefish, the 15 cent a hibiscus, and the 25 cent a native sloop.

Banknotes

Bahamian coins

In 1966, the government introduced notes in denominations of ½, 1, 3, 5, 10, 20, 50 and 100 dollars. The Bahamas Monetary Authority took over the issuance of paper money in 1968, issuing the same denominations. The Central Bank of The Bahamas was established on 1 June 1974 and took over note issuance from that point forward.2 Its first issue of notes did not include the ½ and 3 dollar denominations but these were reintroduced in 1984.

The dollar has undergone several revisions in the last twenty years, one of the more notable being an extremely colourful redesign in celebration of the quincentennial of the landing of Christopher Columbus on a Bahamian island he named San Salvador.

All banknotes have been undergoing design changes to foil forgery in recent years, although the notes implemented more stringent security long before the U.S.'s recent redesign of their notes. All banknotes are the same physical size, like the U.S. dollar but unlike the euro. The latest counterfeit-proof formula is the "Counterfeit Resistant Integrated Security Product", or CRISP.345678 The new $10 banknote was released on August 5, 2005, while the $20 banknote was released on September 6, 2006. In October 2005, someone counterfeited one of the new CRISP $10 bills, serial number A161315. Bahamian authorities warned merchants to look for banknotes that lacked the distinctive watermark.9

Until a few years agowhen? all notes displayed a portrait of Queen Elizabeth II (Head of State) but notes began to display portraits of prominent Bahamian politicians who have died. This policy is now being reversed, with the return of the Queen's portrait to the $10 note. The $½ shows an older Queen Elizabeth II and the back shows a picture of Sister Sarah in the Nassau Straw Market; the $1 shows Sir Lynden Pindling and on the back the Royal Bahamas Police Force Band; the $3 has a young Queen Elizabeth II and on the back shows a Family Island Regatta with native sloops; the $5 – Sir Cecil Wallace-Whitfield and the back shows a Junkanoo group 'rushing' in the Junkanoo parade; the $10 – an older Queen Elizabeth II (replacing Sir Stafford Sands) and the back shows the Hope Town Lighthouse and settlement in Abaco, the $20 – Sir Milo Butler; the $50 – Sir Roland Symonette; the $100 – an older Queen Elizabeth II and the back shows a jumping blue marlin, the national fish of The Bahamas. For this reason, the Bahamian $100 bill is often referred to by locals as "a blue marlin".

Banknotes of the Bahamian dollar (2005 CRISP series)
Value Main Colour Obverse Reverse Watermark
$1 Dark green, mint green and brown Sir Lynden O. Pindling Royal Bahamas Police force band Sir Lynden O. Pindling with an electrotype 1
$5 Orange, brown and blue Sir Cecil Wallace-Whitfield Junkanoo dance Sir Cecil Wallace-Whitfield with an electrotype 5
$10 Dark blue, dark green and maroon Queen Elizabeth II Hope Town, Abaco Island Queen Elizabeth II with an electrotype 10
$10 Dark blue, dark green and maroon Sir Stafford Lofthouse Sands Hope Town, Abaco Island Stafford Sands with an electrotype 10
$20 Charcoal, red and green Sir Milo B. Butler Nassau Harbor Sir Milo B. Butler with an electrotype 20
$50 Orange, brown and green Ronald T. Symonette The Central Bank of Bahamas building Sir Ronald T. Symonette with an electrotype 50
$100 Purple, blue, green and mauve Queen Elizabeth II A blue marlin Queen Elizabeth II with an electrotype 100
Current BSD exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD TRY
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD TRY
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD TRY
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD TRY
From Investing.com: AUD CAD CHF EUR GBP HKD JPY USD TRY
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD TRY

See also

References

  1. ^ Centralbankbahamas.com
  2. ^ Linzmayer, Owen (2012). "Bahamas". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. 
  3. ^ A brochure explaining the security features on the CRISP $1 note
  4. ^ A leaflet explaining the security features on the CRISP $5 note
  5. ^ A leaflet explaining the security features on the CRISP $10 note
  6. ^ A leaflet explaining the security features on the CRISP $20 note
  7. ^ A leaflet explaining the security features on the CRISP $50 note
  8. ^ A leaflet explaining the security features on the CRISP $100 note
  9. ^ Centralbankbahamas.com

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