Bahamian dollar Totally Explained

Everything about Bahamian Dollar totally explained

The dollar (ISO 4217 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 (who prefer receiving their change in U.S. dollars since most are on short visits).

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. It may also explain the unusual 15 cents coin, since this was roughly equivalent to 1 shilling.

Coins

In 1966, coins were introduced in denominations of 1, 5, 10, 15, 25 and 50 cents and 1 dollar. The 1 cent was struck in nickel-brass, the 5, 10, and 15 cents in cupronickel, the 25 cents in nickel, and the 50 cents and 1 dollar in silver. The 10 cents were scallop shaped, whilst the 15 cents 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 cents and 1 dollar coins were issued for circulation, although they didn't replace the corresponding banknotes.
The current 1, 5, and 25 cents coins are about the same size as their U.S. counterparts but with different metal compositions. The 15 cents coins are still produced by the Central Bank (External Link

) 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 cents a pineapple, the 10 cents two bonefish, the 15 cents a hibiscus, and the 25 cents 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. In 1974, the Central Bank of the Bahamas took over note production. Its first issue of notes didn't include the ½ and 3 dollars 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. Note: 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. The new $10 banknote was released on August 5, 2005, while the $20 banknote was released on September 6, 2006. (External Link

) 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. (External Link

) Until a few years ago 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.

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