What Is the Bahamian Dollar (BSD)?

The Bahamian dollar (BSD) is the national cur🦂renc🍸y of the Commonwealth of The Bahamas. The Bahamian dollar is made up of 100 cents and is often denoted by the symbol B$ to distinguish it from other currencies denominated in dollars.

The value of the BSD is pegged on a 1-to-1 basis to the U.S. dollar (USD). This means that U.S. dollars and Bahamian dollars are virtually interchangeable. Businesses in the Bahamas generally accept either BSD or USD aꦅs legal tender.

The BSD is managed by the Central Bank of The Bahamas. Banknotes are available in denominations of 1, 3, 5, 10, 20, 50, and 100 dollars, wওhile coins are available in denominations ranging from one cent to 1 dollar.

Understanding the BSD

The Commonwealth of The Bahamas is a group of 700 islands of vary♌ing sizes at the northern edge of the Caribbean Sea, although only about 30 of the islands are inhabited. It has been politically independent since 1973, having been a colony of Great Britain since 1718.

Due to their strategic location along the rich trade routes of the 18th century, the islands were freﷺquently visited by the pirates that preyed upon merchant ships.

Today, the Bahamian economy relies mainly on tourism, with that sector accounting for over 60% of the 澳洲幸运5官方开奖结果体彩网:gross domestic product (GDP) of the country, and half of all the jobs on the island chain.

Creation of the BSD

The BSD has been the official currency of the Bahamas since 1966 when it replaced the 澳洲幸运5官方开奖结果体彩网:British pound (GDP) at a rate of seven shillings per BSD. Although the islands only formally achieved independence from Great Britain in 1973, the Bahamas began operating as a self-governing nation within the British Commonwealth in 1964.

Today, the Bahamas is a parliamentary democracy and a member of the Commonwealth of Nations.

BSD Banknote Design

The BSD’s paper 澳洲幸运5官方开奖结果体彩网:banknotes depict prominent historical figures and scenes from the history, culture💫, and landmarks of the Bahamas.

Over the years, various banknotes have featured illustrations of the royal poinciana flo🌠wer, a blue marlin🌺, the Paradise Island Bridge, and, of course, the coat of arms of the Commonwealth of the Bahamas.

They also have included politicians such as the independence leader Sir Lynden O. Pindling as well as important places such as Nassau Harbour and the headquarters of the Central Bank of The Bahamas.

The BSD and the Bahamian Economy

Although the value of the BSD is pegged to the USD, its long-term value is ultim🔥ately reliant on the economic strength of the Bahamas.

The economy of the Bahamas is known for its large tourism sector as well as its export of specialty products such as oceangoing vehicles. Financial services are also a major industry🔥 for the Bahamas, with the country serving as a major offshore banking center.

Like all tourism-centric economies, the Bahamas was hit hard by the COVID-19 pandemic. It was well into economic recovery in 2023. In its March 2023 economic review, the Central Bank announced that the government had returned to a surplus from a deficit.

The Bahamian Tax Haven

The Bahamas is an international澳洲幸运5官方开奖结果体彩网: tax haven with strict laws on banking confidentiality. It also has no taxes on income, sales, capital gains, or estates. It has a value-added tax, which is an indirect consumption tax applied to most goods and services.

In 2016, the Bahamas became the subject of international attention following the publication of the so-called 澳洲幸运5官方开奖结果体彩网:Panama Papers. This leak of roughly 11.5 million documents originated with a Panamanian "corporate services provider" but revealed a vast global network of tax havens and the wealthy individuals and companies they served.

A similar leak took place shortly thereafter, dealing specifically with shell companies and other entities that were established in the Bahamas between 1990 and 2016. This leaked data comprised over 1.3 million files and has become known as the “Bahamas Leaks."

The Bottom Line

For Americans, the Bahamian dollar may offer yet another reason to visit the Bahamas. It's got white sand beaches and turquoise waters, and it's just off the coast of Florida. And, its currency is pegged to the U.S. dollar and virtually interchangeable with it.