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