The history of Bermuda money reflects its colonial past, economic ties with the United States, and a transition to a modern monetary system with the introduction of the Bermuda dollar.
Dating back to the early days of British colonization. Here is a brief overview of the evolution of Bermuda currency:
History of Bermuda Money
Spanish and Portuguese Influence: Before British settlement, Bermuda used Spanish and Portuguese coins. The pieces of eight, also known as Spanish dollars, were commonly circulated.
British Sterling: When Bermuda became an official British colony in the 17th century, British sterling coinage became the official currency.
Bermuda Pound: In 1970, Bermuda introduced its own decimal currency system, replacing the pound sterling with the Bermuda pound. The Bermuda dollar (BMD) was pegged to the US dollar at a fixed rate of 1:1.
Modern Currency: In 1970, Bermuda issued its own banknotes and coins, continuing to circulate alongside US currency due to Bermuda’s strong economic ties with the United States.
Bermuda Currency Today
The Bermuda Monetary Authority manages the issuance and regulation of the currency.
Currency Board System: Bermuda operates on a currency board system, where the Bermuda dollar is fully backed by foreign exchange reserves in US dollars. This system ensures the stability of the currency’s value and peg to the US dollar.
New polymer banknotes now replace traditional paper currency, enhancing security features and durability. As well as making the bills colorful, full of life, and weaving Bermuda culture onto each bill.
Planning a trip to Bermuda? Check out my Ultimate Bermuda Travel Guide.
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