Bahamian dollar

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. As the first country worldwide, the Bahamas have intoduced the Sand Dollar as a legal digital currency and alternative to the traditional Bahamian dollar on 20th October 2020.[1][2]

Bahamian dollar
ISO 4217
CodeBSD
Denominations
Subunit
 1/100cent
Symbol$, B$
Banknotes
 Freq. used$½, $1, $3, $5, $10, $20, $50, $100
Coins
 Freq. used1, 5, 10, 15, 25 cents
 Rarely used50 cents, $1, $2
Demographics
User(s) The Bahamas
Issuance
Central bankCentral Bank of The Bahamas
 Websitewww.centralbankbahamas.com
PrinterDe La Rue, Giesecke+Devrient, Oberthur Technologies
Valuation
Inflation2.4%
 SourceThe World Factbook, (2007 est.)
Pegged withUS dollar at par

Relationship with the US dollar

The Bahamian dollar is pegged to the US 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,[3] as main instruments of monetary policy. The Central Bank's objective is to keep stable conditions, including credit, in order to maintain the parity between the US dollar and the Bahamian dollar while allowing economic development to proceed.[3]

Although the US dollar (as any other foreign currency) is subject to exchange control laws in The Bahamas, the parity between Bahamian dollars and US dollars means that any business will accept either US or Bahamian currency and many of the businesses that serve tourists have extra US 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, 7 years before independence. This rate allowed the establishment of parity with the US dollar, due to the sterling/dollar rate then being fixed at £1 = $2.80. To aid in decimalisation, 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.

Coins
5 cent coin - 1981
180px|alt=Two sides of a coin. Bahamas: 5 cents 1981
Bahamian Coat of arms Pineapple
5 cent coin - 1968
Queen Elizabeth II Pineapple

In 1966, coins were introduced in denominations of 1, 5, 10, 15, 25, 50 cents, 1 and 2 dollars. 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 cent coin is about the size of a US dime, the 5 and 25 cent coins are about the same size as their US counterparts but with different metal compositions. The 15 cent coins are still produced by the Central Bank.[4] 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 three starfish, the 5 cent a pineapple, the 10 cent two bonefish, the 15 cent a hibiscus, and the 25 cent a native sloop.

Banknotes

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.[5] 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 other than the fifty cent note have been undergoing design changes to foil forgery in recent years, although the notes implemented more stringent security long before the US's recent redesign of their notes. All banknotes are the same physical size, like the US dollar but unlike the euro. The latest counterfeit-proof formula is the "Counterfeit Resistant Integrated Security Product", or CRISP.[6][7][8][9][10][11] The new $10 banknote was released on 5 August 2005, while the $20 banknote was released on 6 September 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.[12]

Until 1992,[13] all notes displayed a portrait of Queen Elizabeth II (Head of State) but notes began to display portraits of prominent deceased Bahamian politicians. 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)
ValueMain ColourObverseReverseWatermark
$½Moss green, charcoal grey, and dark turquoiseQueen Elizabeth IISister Sarah in the Nassau MarketSpanish Galleon (not a CRISP Series note)[14]
$1Dark green, mint green and brownSir Lynden O. PindlingRoyal Bahamas Police force bandSir Lynden O. Pindling with an electrotype 1
$3Red, orange and purpleQueen Elizabeth IISailing boatsQueen Elizabeth II with an electrotype 3
$5Orange, brown and blueSir Cecil Wallace-WhitfieldJunkanoo danceSir Cecil Wallace-Whitfield with an electrotype 5
$10Dark blue, dark green and maroonQueen Elizabeth IIHope Town, Abaco IslandQueen Elizabeth II with an electrotype 10
$10Dark blue, dark green and maroonSir Stafford Lofthouse SandsHope Town, Abaco IslandStafford Sands with an electrotype 10
$20Charcoal, red and greenSir Milo B. ButlerNassau HarbourSir Milo B. Butler with an electrotype 20
$50Orange, brown and greenSir Roland T. SymonetteThe Central Bank of Bahamas buildingSir Ronald T. Symonette with an electrotype 50
$100Purple, blue, green and mauveQueen Elizabeth IIA blue marlinQueen Elizabeth II with an electrotype 100

Since 2016, a new series called CRISP Evolution has been progressively introduced, maintaining the subjects and motifs of the previous banknotes while updating the security features and color schemes. The series began with the $10 in September 2016 [15] and includes the $1 from September 2017,[16] the $20 from September 2018,[17] the $½ from January 2019,[18] the $3 note from March 2019,[19] the $50 note from October 2019,[20] and the $5 note from September 2020.[21]

Banknotes of the Bahamian dollar (CRISP Evolution series, 2016-present)
ValueMain ColourSizeObverseReverseIntroduction
$½Gray156 × 67 mmQueen Elizabeth IISister Sarah in the Nassau Market24 January 2019
$1Green156 × 67 mmSir Lynden O. PindlingRoyal Bahamas Police force band27 September 2017
$3Fuchsia156 × 67 mmQueen Elizabeth IISailing boats28 March 2019
$5Yellow and Orange156 × 67 mmSir Cecil Wallace-WhitfieldJunkanoo dance23 September 2020
$10Blue156 × 67 mmSir Stafford Lofthouse SandsHope Town, Abaco Island28 September 2016
$20Magenta156 × 67 mmSir Milo B. ButlerNassau Harbour26 September 2018
$50Light blue156 × 67 mmSir Roland T. SymonetteThe Central Bank of Bahamas building3 October 2019
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: 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. Digital Bahamian Dollar. sanddollar.bs. Retrieved 2021-01-28.
  2. Public Update on the Bahamas Digital Currency Rollout. Central Bank of the Bahamas, 2020-12-31. Retrieved 2021-01-28.
  3. "Monetary Policy in The Bahamas". The Central Bank of The Bahamas. 2002–2016. Retrieved 12 July 2016. The fundamental objective of monetary policy in The Bahamas has always been to maintain stable credit and other conditions to support the fixed parity between the Bahamian and US dollars that has prevailed since 1973, while simultaneously allowing the economic development objective to be pursued. Over the years, the Central Bank has relied mainly on interest rate controls in combination with moral suasion and other policies to meet its monetary objectives.
  4. "Centralbankbahamas.com". Archived from the original on 2007-09-27. Retrieved 2007-07-14.
  5. Linzmayer, Owen (2012). "Bahamas". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  6. "A brochure explaining the security features on the CRISP $1 note" (PDF).
  7. "A leaflet explaining the security features on the CRISP $5 note" (PDF).
  8. "A leaflet explaining the security features on the CRISP $10 note" (PDF).
  9. "A leaflet explaining the security features on the CRISP $20 note" (PDF).
  10. "A leaflet explaining the security features on the CRISP $50 note" (PDF).
  11. "A leaflet explaining the security features on the CRISP $100 note" (PDF).
  12. "It has come to our attention that the CRISP $10 banknote serial No. A161315 has been counterfeited" (PDF) (Press release). The Central Bank of The Bahamas. October 7, 2005. Archived from the original (PDF) on October 31, 2006.
  13. "Bahamas". Banknote.ws. Retrieved 2019-10-25.
  14. "Bahamian Banknotes - The Central Bank of The Bahamas". Central Bank of The Bahamas.
  15. "News - The Central Bank of The Bahamas". Centralbankbahamas.com. 2016-09-28. Retrieved 2019-10-25.
  16. "Info" (PDF). www.centralbankbahamas.com. Retrieved 2019-10-25.
  17. "News - The Central Bank of The Bahamas". Centralbankbahamas.com. 2018-09-26. Retrieved 2019-10-25.
  18. "Info" (PDF). www.centralbankbahamas.com. Retrieved 2019-10-25.
  19. "Info" (PDF). www.centralbankbahamas.com. Retrieved 2019-10-25.
  20. "Info" (PDF). www.centralbankbahamas.com. Retrieved 2019-10-25.
  21. https://banknotenews.com/?p=30434

Sources
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