Bermudian dollar

Bermudian dollar
ISO 4217
Code	BMD
Denominations
Subunit
1/100	cent
Symbol	$
Banknotes	$2, $5, $10, $20, $50, $100
Coins
Freq. used	1, 5, 10, 25 cents, $1
Rarely used	50 cents, $5
Demographics
Date of introduction	6 February 1970 (1970-02-06)
User(s)	Bermuda (alongside the United States dollar)
Issuance
Monetary authority	Bermuda Monetary Authority
Website	www.bma.bm
Printer	De La Rue
Mint	Royal Mint
Valuation
Inflation	2.4%
Source	The World Factbook, 2012
Pegged with	United States dollar (at par)

The Bermudian dollar (symbol: $; code: BMD; also abbreviated BD$; informally called the Bermuda dollar) is the official currency of the British Overseas Territory of Bermuda. It is subdivided into 100 cents. The Bermudian dollar is not normally traded outside of Bermuda, and is pegged to the United States dollar at a one-to-one ratio. Both currencies circulate in Bermuda on an equal basis.

History

For nearly four hundred years Spanish dollars, known as "pieces of eight" were in widespread use on the world's trading routes, including the Caribbean region.^[1] However, following the revolutionary wars in Latin America, the source of these silver trade coins, dried up.^[2] The United Kingdom had adopted a very successful gold standard in 1821, and so the year 1825 was an opportune time to introduce the British sterling coinage into all the British colonies.^[2] An imperial Order in Council was passed in that year for the purposes of facilitating this aim by making sterling coinage legal tender in the colonies at the specified rate of 1 Spanish dollar to 4 shillings, 4 pence sterling.^[3] As the sterling silver coins were attached to a gold standard, this exchange rate did not realistically represent the value of the silver in the Spanish dollars as compared to the value of the gold in the British gold sovereign.^[4] Because of this, the conversion had the opposite effect in many colonies, and actually drove sterling coinage out of circulation, rather than encouraged its use.^[5]

Remedial legislation had to be introduced in 1838 so as to change over to the more realistic rating of $1 = 4s 2d. However, in Jamaica, British Honduras, Bermuda, and later in the Bahamas also, the official rating was set aside in favour of what was known as the 'Maccaroni' tradition in which a British shilling, referred to as a 'Maccaroni', was treated as one quarter of a dollar. The common link between these four territories was the Bank of Nova Scotia which brought in the 'Maccaroni' tradition, resulting in the successful introduction of both sterling coinage and sterling accounts. It wasn't however until 1 January 1842 that the authorities in Bermuda formally decided to make sterling the official currency of the colony to circulate concurrently with Doubloons (64 shillings) at the rate of $1 = 4s 2d. Contrary to expectations, and unlike in the Bahamas where US dollars circulated concurrently with sterling, the Bermudas did not allow themselves to be drawn into the U. S. currency area. The Spanish dollars fell away in the 1850s but returned again in the 1870s following the international silver crisis of 1873. In 1874, the Bermuda merchants agreed unanimously to decline to accept the heavy imports of U.S. currency except at a heavy discount, and it was then exported again. And in 1876, legislation was passed to demonetise the silver dollars for fear of them returning. In 1882, the local 'legal tender act' demonetised the gold doubloon, which had in effect been the real standard in Bermuda, and this left pounds, shillings, and pence as the sole legal tender.

The pound sterling remained the official currency of Bermuda until 1970, though the Government of Bermuda did issue its own pound banknotes.^[6] With U.S. and Canadian coins regularly appearing in circulation in Bermuda and the possibility of the devaluation of the pound sterling, Bermuda was compelled to adopt its own decimal currency.^[7] On 6 February 1970, Bermuda introduced a new decimal currency in the form of a dollar. The nascent Bermuda dollars circulated in conjunction with the new British decimal coinage a year before it was introduced in the United Kingdom.^[8] By adopting decimalisation early, Bermuda was also able place orders for the coinage from the Royal Mint before other Commonwealth countries seeking to decimalise could.^[7] The link between the Bermudian dollar and the pound sterling was not broken until 31 July 1972, which allowed Bermuda to align to a one-to-one exchange rate with that of the United States.^[9] The decision for Bermuda to peg its dollar to the U.S. dollar added convenience for the multitude of American tourists and businesses with whom Bermuda largely relied on.^[10]

Since 1972, Bermuda law has required that local businesses charge prices in Bermudian dollars which, if paid in US dollars, must be accepted at a rate of 1:1. Only banks are legally allowed to exchange Bermudian dollars into U.S. dollars or other currencies, subject to a 1% Foreign Currency Purchase Tax (some banks also charge an exchange fee).

Coins

a 1964 Bermuda crown

Prior to decimalisation and conversion to the dollar, the Government of Bermuda did not issue its own coins, other than the commemorative Bermuda crowns, since the 19th Century at the latest. In 1970, the Bermuda Monetary Authority introduced coinage with denominations of 1, 5, 10, 25, and 50 cents. From its inception, the 1-cent coin was struck out of bronze until 1988, when it was replaced with copper-plated steel. The composition of the 1-cent coin was changed to copper-plated zinc in 1991.^[9] All other denominations, at the time, were minted from cupronickel. Nickel-brass 1-dollar and 5-dollar coins were issued in 1983; neither were very popular, with the 5-dollar coin eventually being withdrawn from circulation on 1 January 1990.^[11] New 1-dollar coins that were thinner and one-third lighter than the 1983 issue were produced in 1988.^[12] The 50-cent denomination was also phased out, with the coins being called in on 1 May 1990.^[13] All denominations of Bermuda coinage depict the monarch of the United Kingdom on the obverse, currently Queen Elizabeth II. From 1970 through 1985, the royal effigy by Arnold Machin was used, followed by an effigy by Raphael Maklouf from 1986 through 1998.^[9] The current obverse, introduced in 1999, is the royal effigy sculpted by Ian Rank-Broadley.

Bermuda has occasionally released commemorative coins to celebrate certain events, historical milestones, flora, and fauna. These coins bear a face value, but are generally seen more as collector's items or stores of value. Notable among these are the so-called "Bermuda triangles", which are pressed on special lobed triangular planchets, are minted in gold and silver, and come in denominations divisible by three.

Coins in circulation
Image		Value	Technical parameters			Description[14]			Date of
Reverse	Composition		Mass	Diameter	Edge	Obverse	Reverse	First minting	Withdrawal	Lapse
	1 cent	Bronze (1970–1987)	3.11 g	19 mm	Plain	Elizabeth II	Wild hog	1970	—	—
		Copper-plated steel (1988–1990)	2.80 g
		Copper-plated zinc (1991–present)	2.50 g
	5 cents	Cupronickel	5.00 g	21.2 mm	Plain	Elizabeth II	Angelfish	1970	—	—
	10 cents	Cupronickel	2.45 g	17.9 mm	Milled	Elizabeth II	Bermuda Easter lilies	1970	—	—
	25 cents	Cupronickel	5.92 g	25 mm	Milled	Elizabeth II	Longtail in flight	1970	—	—
	50 cents	Cupronickel	12.60 g	30.5 mm	Milled	Elizabeth II	Coat of arms of Bermuda	1970	1 May 1990[13]	30 April 2000[13]
	1 dollar	Nickel–brass	9.50 g	22.5 mm	Milled and inscribed with "Bermuda Monetary Authority"	Elizabeth II	Bermuda map and cahow	1983	—	—
			7.56 g	26 mm	Alternating plain and milled		Bermuda-fitted dinghy	1988	—	—
	5 dollars	Nickel-brass		25.5 mm	Milled and inscribed with "Bermuda Monetary Authority"	Elizabeth II	Bermuda map and onion	1983	1 January 1990[11]	31 December 1999[11]

Banknotes

In the 20th century, its pound notes were issued in all denominations (and the only coins used were UK ones). In 1970, the government introduced dollar notes in denominations of 1, 5, 10, 20 and 50 dollars. From 1974, the Bermuda Monetary Authority took over paper money production, introducing 100 dollar notes in 1982 and 2 dollars in 1988, when the 1 dollar was replaced by a coin. 1970 dollar notes are all printed with Bermuda Government across the top. Later notes substitute Bermuda Monetary Authority. All of the "legacy" banknotes were withdrawn from circulation on 1 January 2014, but still able to be exchanged for new banknotes for 10 years.^[15][16] Including the original 1970 series, all horizontal-style banknotes will be phased out in favor of the vertical, 2009 series.^[17]

2000 series
Pick No.	Image		Value	Dimensions[18]	Main Colours[19]	Description[18][20]			Date of
	Obverse	Reverse				Obverse	Reverse	Watermark	First printing	Withdrawal
50			$2	140 × 68 mm	Blue and green on multicolour	Elizabeth II and seahorse	Map of Bermuda and Royal Naval Dockyard	Tuna fish	24 May 2000	1 January 2014
51			$5		Purple and burgundy on multicolour	Elizabeth II and Conch shell	St. David's Lighthouse and town of St. George's
52			$10		Dark blue and mauve on multicolour	Elizabeth II and Oleander flowers	Flatt's Inlet, cahow, and seashell
53			$20		Green and red on multicolour	Elizabeth II and Burnaby House	Ely's Harbour and Somerset Bridge
54			$50		Bluish black, red and brown on multicolour	Elizabeth II and Commissioner's House	Map of Bermuda and Scuba divers exploring shipwreck
55			$100		Red-orange and brown on multicolour	Elizabeth II and Bermudiana flowers	House of Assembly of Bermuda and Camden House
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.

Redesign

In 2008, it was announced that banknotes would be redesigned in celebration of Bermuda's 400th anniversary, the first redesign since the launch of the dollar.^[21] The new designs were described as "distinctly Bermudian",^[22] with Queen Elizabeth II being relegated to a minor position,^[23] using a royal effigy by Machin.^[24] They feature themes and scenes of maritime Bermuda, and like their predecessors are coloured by value. The serial number prefix on the first million notes is that of a Bermuda onion; subsequent notes will bear a conventional prefix. The series was issued on 9 March 2009.^[25] The Bermuda Monetary Authority was awarded "Bank Note of the Year" by the International Banknote Society for the design of the new $2 banknote.^[26] The 2009-series $50 banknote was modified in August 2012 to depict the correct species of longtail native to Bermuda.^[27]

See also

• Economy of Bermuda

References

Sources

External links

• Bermuda Monetary Authority
• Essential facts about the Bermuda dollar (geared toward overseas visitors)

Bermuda articles
History	Sloop Railway Hurricane strikes Colonisation Eleuthera History of the Turks and Caicos Islands London Company Sea Venture George Somers Somers Isles Company Military Militias 1612–1687 1687–1813 1813 Volunteer/Territorial Army Units 1895–1965 North American Station RAF in Bermuda during World War II USN Submarine Base, Ordnance Island
Geography	Bermuda Triangle Bermuda Institute of Ocean Sciences (BIOS) National Trust Coral reef Sargasso Sea Spittal Pond Environment Flora Bermuda onion Casuarina Cassine laneana Juniperus bermudiana Lilium longiflorum Sabal bermudana Sisyrinchium Fauna Bermuda land snail Bermuda petrel Bermuda rock skink Common ground dove Eastern bluebird Gray catbird Great kiskadee Humpback whale Mourning dove Northern cardinal White-eyed vireo White-tailed tropicbird Yellow-crowned night heron
Politics	British Overseas Territories Governor LGBT rights Parliament House of Assembly Senate Political parties Progressive Labour Party One Bermuda Alliance Premiers
Economy	ACE Ltd. Bermudian dollar (currency) Bermudian pound (former currency) Butterfield Bank HSBC Bank Bermuda Industrial Union Monetary Authority Public Services Association Reinsurance Stock Exchange Transport airport XL Capital
Society	Places The Causeway The Fairmont Hamilton Princess Government House Royal Naval Dockyard Somerset Bridge Victoria Park, Hamilton Communications .bm (Internet domain) Area code 441 Bermuda Broadcasting Company Postal codes TV stations VSB-TV ZBM-TV ZFB-TV The Royal Gazette Culture Architecture Bermudian English Coat of arms Gombey Kites Music Public holidays Shorts Sports and recreation Religion Cathedral of the Most Holy Trinity Cathedral of Saint Theresa of Lisieux, of the Roman Catholic Church Roman Catholic Diocese of Hamilton in Bermuda Anglican Church of Bermuda Bishop of Bermuda
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