Barbadian dollar

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Barbadian dollar
A Barbadian 100 Dollar bill with various Barbadian coins on it.jpg
A Series 2022 Barbadian 100 dollar bill and a selection of coins, ranging from $1 to 5¢
ISO 4217
CodeBBD (numeric:052)
Subunit 0.01
Unit
Symbol $, BB$, [1] BBD$, BDS$
Denominations
Banknotes$2, $5, $10, $20, $50, $100
Coins
Freq. used5¢, 10¢, 25¢, $1
Demographics
User(s)Flag of Barbados.svg  Barbados
Issuance
Central bank Central Bank of Barbados
Website www.centralbank.org.bb
Valuation
Inflation 2.2%
Source Central Bank of Barbados , January 2022.
Pegged with US$1=BBD$2

The dollar has been the currency of Barbados since 1935[ citation needed ]. Globally its currency has the ISO 4217 code BBD, [2] [3] however, unofficially in Barbados the International vehicle registration code BDS is also commonly used, [notes 1] [notes 2] a currency code that is otherwise reserved for Bangladesh (ISO 3166-1 country code BD) outside Barbados. [6] As such the present Barbados dollar has the official ISO 4217 code of BB which matches the [dot] .bb Cc-TLD domain names classification for Barbados under ISO 3166, plus D for dollar in the foreign exchange market. The Barbadian dollar is considered as a currency which can be divided into 100 cents, though the 1 cent coin is in the process of being phased out. In terms of population, Barbados is the third smallest country in the world after Tonga and the Seychelles to have an independent currency and monetary policy.

Contents

History

The history of currency in the former British colony of Barbados closely follows that of British Eastern Caribbean territories in general. Even though Queen Anne's proclamation of 1704 introduced the pound sterling currency system to the West Indies, silver pieces of eight (Spanish dollars and later Mexican dollars) continued to form a major portion of the circulating currency right into the latter half of the nineteenth century.

Britain adopted the gold standard in 1821 and an imperial order-in-council of 1838 resulted in Barbados formally adopting the British sterling coinage in the year 1848. However, despite the circulation of British coins in Barbados the silver pieces of eight continued to circulate alongside them and the private sector continued to use dollar accounts for reckoning. The international silver crisis of 1873 signalled the end of the silver dollar era in the West Indies and silver dollars were demonetized in Barbados in 1879. This left a state of affairs, in which the British coinage circulated, being reckoned in dollar accounts at an automatic conversion rate of 1 dollar = 4 shillings 2 pence. The first currency denominated in dollars to be issued in Barbados was in the form of private banknotes introduced in 1882. No subdivisions of the dollar were issued and these notes circulated alongside sterling, together with 1 pound notes issued by the government in 1917. From 1920, some of the private banknotes also carried a denomination in sterling, with 1 dollar = 4 shillings 2 pence.

From 1949, with the introduction of the British West Indies dollar, the currency of Barbados became officially tied with those of the British Eastern Caribbean territories in general. Between 1938 and 1949, the Barbadian government issued paper money denominated in dollars. The last private bank issues were made in 1949. The British sterling coinage was eventually replaced by a new decimal coinage in 1955, with the new cent being equal to one half of the old penny. In 1965, the Eastern Caribbean dollar replaced the British West Indies dollar in Barbados.

The present dollar was created after the establishment of the Central Bank of Barbados (CBB), which was founded by an Act of parliament in May, 1972. The Barbados dollar replaced the East Caribbean dollar at par in 1973. Since 5 July 1975, the Barbados dollar has been pegged to the US dollar. It is presently fixed at an exchange rate of US$1 = BBD$1.98. [7] However, in practice in businesses, the effective exchange rate with US dollar is fixed at 2 to 1 in favor of the US dollar, i.e. US$1=BBD$2

For a wider outline of the history of currency in the region, see Currencies of the British West Indies.

Coins

In 1973, the first year of Barbados having its own coinage, coins were introduced in denominations of 1¢, 5¢, 10¢, 25¢, and $1. From 1973 through 1991, the 1¢ was struck in bronze. From 1992, copper-plated zinc has been used. The 5¢ coin is struck in brass, whilst the highest 3 denominations are struck in cupronickel. The $1 coin is a 7-sided equilaterally-curved piece. A flying fish is adorned on one side, with the Barbadian coat of arms on the reverse. The Barbadian dollar coins are now minted in a plated-steel planchet first issued in 2007. Many of the coins in circulation have been struck at the Royal Canadian Mint.

The reverse of the 5 cent coin depicts the South Point Lighthouse, the oldest lighthouse in Barbados.

Coins of the Barbadian dollar
ImageValueTechnical parametersDescriptionDate of first minting
DiameterThicknessMassCompositionEdgeObverseReverse
1 cent18.86 mm1.55 mm2.78 gCopper-plated steelPlain Coat of arms of Barbados Trident2007
5 cents21.2 mm1.65 mm3.45 gBrass-plated steelPlain Coat of arms of Barbados South Point Lighthouse 2007
10 cents17.77 mm1.35 mm2.09 gNickel-plated steelReeded Coat of arms of Barbados Laughing Gull2007
25 cents23.66 mm1.82 mm5.1 gNickel-plated steelReeded Coat of arms of Barbados Morgan Lewis windmill2007
1 dollar25.85 mm1.65 mm5.95 gNickel-plated steelPlain Coat of arms of Barbados Flying fish2007

Banknotes

5 dollar note, Colonial Bank, Barbados, 1902. On display at the British Museum in London 5 dollar note, Colonial Bank, Barbados, 1902. On display at the British Museum in London.jpg
5 dollar note, Colonial Bank, Barbados, 1902. On display at the British Museum in London

In 1882, the Colonial Bank introduced notes for 5 dollars. In 1920, 20 and 100 dollar notes were also issued by this bank. In 1922, Barclays Bank, having taken over the Colonial Bank, began issuing 5, 20 and 100 dollar notes. The higher denominations ceased production in 1940 but the 5 dollar continued to be issued until 1949.

The Royal Bank of Canada introduced notes in 1909, in denominations of 5, 20 and 100 dollars. From 1920, these notes also bore the denomination in sterling, with 5 dollars = 1 pound 10 pence, 20 dollars = 4 pounds 3 shillings 4 pence and 100 dollars = 20 pounds 16 shillings 8 pence. Notes were issued until 1938. The Canadian Bank of Commerce issued notes between 1922 and 1940, also in denominations of 5, 20 and 100 dollars.

Between 1938 and 1949, the government issued notes in denominations of 1, 2, 5, 20 and 100 dollars. All bore the portrait of King George VI.

A selection of coins of the Barbadian dollar, plus a $1 note. Barbadian Money.jpg
A selection of coins of the Barbadian dollar, plus a $1 note.

On 3 December 1973, [8] the Central Bank of Barbados introduced notes in denominations of 1, 5, 10, 20 and 100 dollars. 2 dollar notes were introduced in 1980, followed by 50 dollars in 1989. The 1 dollar note was no longer issued after 1988. [9]

Banknotes currently in circulation are:

The defunct 1 Dollar note was red in colour and had Samuel Jackman Prescod on the obverse.

On 2 May 2013, the Central Bank of Barbados issued a new series of banknotes with a more modern design. The portraits on all of the denominations have been retained, but on the back of the notes is a design specific to the person depicted on the front of the notes. [10] [11]

On 21 March 2022, the Central Bank of Barbados announced its intent to replace the current paper banknotes with polymer banknotes by the end of the year stating it would allow for more secure and durable cash. [12] The new designs of the polymer banknotes were then later revealed on 4 May 2022 and the notes were rolled out on 5 December 2022, and will circulate alongside existing paper banknotes for the foreseeable future. [13]

Current BBD exchange rates
From Google Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD
From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD
From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD
From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD

See also

Notes

  1. The alphabetic code is based on another ISO standard, ISO 3166, which lists the codes for country names. The first two letters of the ISO 4217 three-letter code are the same as the code for the country name, and, where possible, the third letter corresponds to the first letter of the currency name. [4] For example: The US dollar is represented as USD – the US coming from the ISO 3166 country code and the D for dollar. The Swiss franc is represented by CHF – the CH being the code for Switzerland in the ISO 3166 code and F for franc.
  2. The Government of Barbados and the Central Bank often use the International vehicle registration code "BDS" instead of the ISO 4217 code "BBD". For example, the Central Bank uses the code "BDS$" for listing past exchange rates on its website. [5]

Related Research Articles

The Eastern Caribbean dollar is the currency of all seven full members and one associate member of the Organisation of Eastern Caribbean States (OECS). The successor to the British West Indies dollar, it has existed since 1965, and it is normally abbreviated with the dollar sign $ or, alternatively, EC$ to distinguish it from other dollar-denominated currencies. The EC$ is subdivided into 100 cents. It has been pegged to the United States dollar since 7 July 1976, at the exchange rate of US$1 = EC$2.70.

<span class="mw-page-title-main">ISO 4217</span> Standard that defines codes for the representation of currencies

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The British West Indies dollar (BWI$) was the currency of British Guiana and the Eastern Caribbean territories of the British West Indies from 1949 to 1965, when it was largely replaced by the East Caribbean dollar, and was one of the currencies used in Jamaica from 1954 to 1964. The monetary policy of the currency was overseen by the British Caribbean Currency Board (BCCB). It was the official currency used by the West Indies Federation The British West Indies dollar was never used in British Honduras, the Cayman Islands, the Turks and Caicos Islands, the Bahamas, or Bermuda.

<span class="mw-page-title-main">Maltese lira</span> Currency of Malta from 1825 until 31 December 2007

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<span class="mw-page-title-main">Azerbaijani manat</span> Currency of Azerbaijan

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<span class="mw-page-title-main">Transnistrian ruble</span> Currency of Transnistria

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<span class="mw-page-title-main">Trinidad and Tobago dollar</span> Currency of Trinidad and Tobago

The Trinidad and Tobago dollar is the currency of Trinidad and Tobago. It is normally abbreviated with the dollar sign $, or alternatively TT$ to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents. Cents are abbreviated with the cent sign ¢, or TT¢ to distinguish from other currencies that use cents. Its predecessor currencies are the Trinidadian dollar and the Tobagonian dollar.

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<span class="mw-page-title-main">Guyanese dollar</span> Currency used in Guyana

The Guyanese dollar has been the unit of account in Guyana since 29 January 1839. Originally it was intended as a transitional unit to facilitate the changeover from the Dutch guilder system of currency to the British pound sterling system. The Spanish dollar was already prevalent throughout the West Indies in general, and from 1839, the Spanish dollar unit operated in British Guiana in conjunction with British sterling coins at a standard conversion rate of one dollar for every four shillings and twopence. In 1951 the British sterling coinage was replaced with a new decimal coinage which was simultaneously introduced through all the British territories in the Eastern Caribbean. When sterling began to depreciate in the early 1970s, a switch to a US dollar peg became increasingly attractive as an anti-inflationary measure and the Eastern Caribbean Currency Authority made the switch in October 1975. The Guyanese dollar is normally abbreviated with the dollar sign $, or alternatively G$ to distinguish it from other dollar-denominated currencies.

<span class="mw-page-title-main">Jersey pound</span> Currency of Jersey

The pound is the currency of Jersey. Jersey is in currency union with the United Kingdom, and the Jersey pound is not a separate currency but is an issue of banknotes and coins by the States of Jersey denominated in sterling, in a similar way to the banknotes issued in Scotland and Northern Ireland. It can be exchanged at par with other sterling coinage and notes.

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<span class="mw-page-title-main">Jamaican pound</span> Official currency of Jamaica (1840–1969)

The pound was the official currency of Jamaica between 1840 and 1969. It circulated as a mixture of sterling coinage and locally issued coins and banknotes and was always equal to the pound sterling. The Jamaican pound was also used in the Cayman and Turks and Caicos Islands.

The pound was the currency of the Bahamas until 1966. It was equivalent to the pound sterling and was divided into 20 shillings, each of 12 pence. Standard sterling coinage circulated. Apart from a Bahamas penny coin struck in 1806, there were no special coin issues such as were found in Jamaica.

The history of currency in the British colony of Dominica closely follows that of the British Eastern Caribbean territories in general. Even though Queen Anne's proclamation of 1704 brought the gold standard to the West Indies, silver pieces of eight continued to form a major portion of the circulating currency right into the latter half of the nineteenth century.

The history of currency in the British colony of St. Kitts closely follows that of the British Eastern Caribbean territories in general. Even though Queen Anne's proclamation of 1704 brought the gold standard to the West Indies, silver pieces of eight continued to form a major portion of the circulating currency right into the latter half of the nineteenth century.

The history of currency in the British colony of Saint Vincent closely follows that of the British Eastern Caribbean territories in general. As such, it should not be considered in isolation. In order to get a broad overview of currency in the region, see the article British West Indies dollar.

The region known as the British West Indies included British Guiana on the South American mainland, British Honduras in Central America, Bermuda, The Bahamas, and Jamaica, along with its former dependencies of the Cayman Islands and the Turks and Caicos Islands. It also included the Eastern Caribbean territories of Trinidad and Tobago, Barbados, the Windward Islands and the Leeward Islands.

References

  1. "Barbados Customs, Currency & Airport Tax regulations summary". IATA. 12 December 2023. Retrieved 12 December 2023.
  2. "Barbados Dollar". Oanda. Retrieved 12 December 2023.
  3. "BBD - Barbadian or Bajan Dollar". Xe. Retrieved 12 December 2023.
  4. "Popular standards ISO 4217 Currency codes". International Organization for Standardization (ISO. Retrieved 12 December 2023.
  5. "Exchange Rates". Central Bank of Barbados. Retrieved 26 January 2022.
  6. Staff writer (2015). "ISO 4217 - Currency Codes". www.iso.org. International Organisation for Standardisation. Retrieved 27 June 2022. The alphabetic code is based on another ISO standard, ISO 3166, which lists the codes for country names. The first two letters of the ISO 4217 three-letter code are the same as the code for the country name, and, where possible, the third letter corresponds to the first letter of the currency name.
  7. "Historical Exchange Rates – 31st December, 2021". Central Bank of Barbados. Retrieved 1 January 2022.
  8. Linzmayer, Owen (2012). "Barbados". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  9. "45 Things You Didn't Know About Barbados' Money". Central Bank of Barbados. Retrieved 29 May 2022.
  10. Barbados new banknote series reported BanknoteNews.com. 2 May 2013. Retrieved 2013-05-03.
  11. Press release on the issuance of the new series of banknotes by the Central Bank of Barbados Archived 7 May 2013 at the Wayback Machine Central Bank of Barbados. (www.centralbank.org.bb). Retrieved 2013-05-03.
  12. "Barbados switching to polymer banknotes later this year". Barbados Today. 21 March 2022. Retrieved 22 March 2022.
  13. "Standing Secure: Launch of Barbados' 2022 Banknote Series". Central Bank of Barbados. Retrieved 4 May 2022.

Further reading