Bermudian Dollar

Overview

Bermuda’s official currency is the Bermudian Dollar (BMD). The symbol used for the Bermudian Dollar is the same as the US Dollar ($). The country also uses BD$ to distinguish the Bermudian Dollar from the USD. The Dollar is divided into 100 cents. No trading of the Bermudian Dollar is done outside the island of Bermuda.

Economy

• Bermuda’s economy is stable and the country has a high capita per income compared to the rest of the world.
• The tourist industry accounts for 28% of the GDP and mainly receives business from North America. The service industry accounts for 89% of the total GDP.
• International Business accounts for 60% of the economic output of Bermuda.
• Bermuda imports 80% of its food products.
• The island is also an offshore financial institution.
• The unemployment rate is estimated at 2.1%.
• The main export product is pharmaceuticals.
• Import products are food, construction material, machinery, live animals, clothing, and fuels.

History

• Like its Caribbean neighbors, Bermuda used the Spanish Dollar for over four decades.
• In 1842, the Sterling became the official currency of Bermuda.
• During the 1850s the Spanish Dollar was taken out of circulation; however, it was put back into circulation in 1870s.
• In 1876, legislation was enacted to prevent the Spanish Dollar from returning.
• Until 1970, the Bermuda Sterling was the official currency of Bermuda.
• Bermuda introduced the Dollar in 1970 but kept the Sterling. At that point the Sterling and Dollar had a fixed exchange rate of $2.40 = £ 1.
• In 1972, the Sterling era ended and Bermuda pegged its dollar to the US Dollar at par.
• Control over the Sterling was abolished in 1979.