Finance:Bahamian dollar

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Short description: Monetary currency of the Bahamas
Bahamian dollar
ISO 4217
CodeBSD (numeric: 044)
Subunit0.01
Unit
Symbol$, B$‎
Denominations
Subunit
 ​1⁄100cent
Banknotes
 Freq. used$​1⁄2, $1, $3, $5, $10, $20, $50, $100
Coins
 Freq. used5, 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, Orell Füssli, Canadian Bank Note Company
Valuation
Inflation2.4%
 SourceThe World Factbook, (2007 est.)
Pegged withUnited States 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.

On 20 October 2020, the Bahamas became the first country to have a legal digital currency, introducing the Sand Dollar as an alternative to the traditional Bahamian dollar.

Relationship with the US dollar

The Bahamian dollar is pegged to the United States 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,[1] 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.[1]

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 (US$0.98) 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, after a slight revaluation of 2%. 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.

On 20 October 2020, the Bahamas became the first country to have a legal digital currency,[2] introducing the Sand Dollar as an alternative to the traditional Bahamian dollar.[3][4][5]

Coins

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, 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 now-obsolete 1 cent coin is about the size of a US dime, and 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.[6] 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.

The 1 cent was demonetised at the end of 2020. All cash transactions in the Bahamas are now rounded to the nearest five cents.

Coins of the Bahamian dollar (1974-2005 issues)
Image Value Technical parameters Description Date of first minting
Diameter Thickness Mass Composition Edge Obverse Reverse 1 cent 19.05 mm 1.40 mm 3.16 g Nickel-brass Smooth Coat of arms of The Bahamas Starfish 1974 1 cent 19.00 mm 1.40 mm 2.50 g Copper-plated zinc Smooth Coat of arms of The Bahamas Starfish 1985 5 cents 21.00 mm 1.53 mm 3.94 g Copper-nickel Smooth Coat of arms of The Bahamas Pineapple 1974 10 cents 23.50 mm 1.72 mm 5.54 g Copper-nickel Smooth Coat of arms of The Bahamas Two Bonefish 1974 15 cents 25.00 mm 2.06 mm 6.48 g Copper-nickel Smooth Coat of arms of The Bahamas Hibiscus 1974 25 cents 24.26 mm 1.9 mm 6.9 g Nickel Reeded Coat of arms of The Bahamas Bahamian sailboat 1974 25 cents 24.26 mm 1.65 mm 5.75 g Copper-nickel Reeded Coat of arms of The Bahamas Bahamian sailboat 1991 50 cents 29 mm 10.51 g Copper-nickel Reeded Coat of arms of The Bahamas Blue marlin 1974
1 dollar 32 mm 18.30 g Copper-nickel Reeded Coat of arms of The Bahamas Conch shell 1981
2 dollars 40 mm 2.5 mm 26.9 g Copper-nickel Reeded Coat of arms of The Bahamas Two flamingos 1974
Coins of the Bahamian dollar (2007-2018 issues)
Image Value Technical parameters Description Date of first minting
Diameter Thickness Mass Composition Edge Obverse Reverse 1 cent 17 mm 1 mm 1.70 g Copper-plated steel Smooth Coat of arms of The Bahamas Three starfish 2014
5 cents 21 mm 1.53 mm 3.5 g Nickel-plated steel Smooth Coat of arms of The Bahamas Pineapple 2015
10 cents 23.5 mm 1.8 mm 5.2 g Nickel-plated steel Smooth Coat of arms of The Bahamas Two bonefish 2007
15 cents 25 mm 2 mm 6.48 g Nickel-plated steel Smooth Coat of arms of The Bahamas Three Hibiscus flowers 2018
25 cents 24.3 mm 1.7 mm 5 g Nickel-plated steel Reeded Coat of arms of The Bahamas Bahamian sloop 2007

Banknotes

In 1966, the government introduced notes in denominations of ​1⁄2, 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.[7] Its first issue of notes did not include the ​1⁄2 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.[8][9][10][11][12][13] 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.[14]

Until 1992,[15] 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 $​1⁄2 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
$​1⁄2 Moss green, charcoal grey, and dark turquoise Queen Elizabeth II Sister Sarah in the Nassau Market Spanish Galleon (not a CRISP Series note)[16]
$1 Dark green, mint green and brown Sir Lynden O. Pindling Royal Bahamas Police force band Sir Lynden O. Pindling with an electrotype 1
$3 Red, orange and purple Queen Elizabeth II Sailing boats Spanish Galleon (not a CRISP Series note)[16]
$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 Harbour Sir Milo B. Butler with an electrotype 20
$50 Orange, brown and green Sir Roland 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

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 on 28 September 2016 [17] and includes the $1 from 27 September 2017,[18] the $20 from September 2018,[19] the $​1⁄2 from 24 January 2019,[20] the $3 note from 28 March 2019,[21] the $50 note from 3 October 2019,[22] the $5 note from 23 September 2020[23] and the $100 note on 6 October 2021.[24]

Due to the $10 banknote being similar in colour to the $1 banknote, the $10 banknote in this series was updated to have a grey colour on 15 December 2022.[25]

Banknotes of the Bahamian dollar (CRISP Evolution series, 2016–present)
Value Main Colour Size Obverse Reverse Introduction
$​1⁄2 Gray 156 × 67 mm Queen Elizabeth II Sister Sarah in the Nassau Market 24 January 2019
$1 Green 156 × 67 mm Sir Lynden O. Pindling Royal Bahamas Police force band 27 September 2017
$3 Fuchsia 156 × 67 mm Queen Elizabeth II Sailing boats 28 March 2019
$5 Yellow and Orange 156 × 67 mm Sir Cecil Wallace-Whitfield Junkanoo dance 23 September 2020
$10 Blue 156 × 67 mm Sir Stafford Lofthouse Sands Hope Town, Abaco Island 28 September 2016
$20 Magenta 156 × 67 mm Sir Milo B. Butler Nassau Harbour 26 September 2018
$50 Light blue 156 × 67 mm Sir Roland T. Symonette The Central Bank of Bahamas building 3 October 2019
$100 Light brown 156 × 67 mm Arthur Dion Hanna Blue marlin 6 October 2021


See also

  • Central banks and currencies of the Caribbean
  • Economy of the Bahamas

References

  1. ↑ 1.0 1.1 "Monetary Policy in The Bahamas". The Central Bank of The Bahamas. 2002–2016. http://www.centralbankbahamas.com/policy.php. "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." 
  2. ↑ Mathias Müller: China verabschiedet sich langsam vom Bargeld. Neue Zürcher Zeitung online, 2021-01-28. Retrieved February 27, 2021.
  3. ↑ Digital Bahamian Dollar. sanddollar.bs. Retrieved 2021-01-28.
  4. ↑ Public Update on the Bahamas Digital Currency Rollout. Central Bank of the Bahamas, 2020-12-31. Retrieved 2021-01-28.
  5. ↑ Wilson, Tom "Analysis: Central bankers comb for crypto clues as Bahamas launches 'Sand Dollar'" Reuters Dec. 18, 2020
  6. ↑ "Centralbankbahamas.com". http://www.centralbankbahamas.com/faqs.lasso?cmd=view&category=Issuer%20of%20Banknotes%20and%20Coins. 
  7. ↑ Linzmayer, Owen (2012). "Bahamas". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. http://www.banknotebook.com. 
  8. ↑ "A brochure explaining the security features on the CRISP $1 note". http://www.centralbankbahamas.com/download/bsd1_crisp.pdf. 
  9. ↑ "A leaflet explaining the security features on the CRISP $5 note". http://www.centralbankbahamas.com/download/bsd5_crisp.pdf. 
  10. ↑ "A leaflet explaining the security features on the CRISP $10 note". http://www.centralbankbahamas.com/download/bsd10_crisp.pdf. 
  11. ↑ "A leaflet explaining the security features on the CRISP $20 note". http://www.centralbankbahamas.com/download/bsd20_crisp.pdf. 
  12. ↑ "A leaflet explaining the security features on the CRISP $50 note". http://www.centralbankbahamas.com/download/bsd50_crisp.pdf. 
  13. ↑ "A leaflet explaining the security features on the CRISP $100 note". http://www.centralbankbahamas.com/download/bsd100_crisp.pdf. 
  14. ↑ "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.
  15. ↑ "Bahamas". Banknote.ws. http://www.banknote.ws/COLLECTION/countries/AME/BAH/BAH.htm. 
  16. ↑ 16.0 16.1 "Bahamian Banknotes - The Central Bank of The Bahamas". Central Bank of The Bahamas. http://www.centralbankbahamas.com/bank_notes.php. 
  17. ↑ "News - The Central Bank of The Bahamas". Centralbankbahamas.com. 2016-09-28. https://www.centralbankbahamas.com/news.php?cmd=view&id=16191. 
  18. ↑ "Info". https://www.centralbankbahamas.com/download/022160300.pdf. 
  19. ↑ "News - The Central Bank of The Bahamas". Centralbankbahamas.com. 2018-09-26. https://www.centralbankbahamas.com/news.php?cmd=view&id=16469. 
  20. ↑ "Info". https://www.centralbankbahamas.com/download/084111900.pdf. 
  21. ↑ "Info". https://www.centralbankbahamas.com/download/016197600.pdf. 
  22. ↑ "Info". https://www.centralbankbahamas.com/download/021337300.pdf. 
  23. ↑ "Bahamas new 5-dollar note (B351a) confirmed introduced on 23.09.2020 – BanknoteNews". https://banknotenews.com/?p=30434. 
  24. ↑ "Bahamas new 100-dollar note (B355a) reported for introduction on 06.10.2021 – BanknoteNews". https://banknotenews.com/?p=34432. 
  25. ↑ "Press Release: The Central Bank of The Bahamas to Release a New Bahamas $10 Banknote- Central Bank of the Bahamas" (in en-US). https://www.centralbankbahamas.com/news/press-releases/press-release-the-central-bank-of-the-bahamas-to-release-a-new-bahamas-10-banknote. 

Sources

External links



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