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Bahamian dollar

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	Bahamian dollar
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	Topics Bahamian dollar Topic Home Relationship with the U.S. dollar The Bahamian dollar is peggedFixed exchange rate A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's... to the U.S. dollar on a one-to-one basis. The Central Bank of The Bahamas states that it uses reserve requirements, changes in the Bank discount rate and selective credit controls, supplemented by moral suasion as main instruments of monetary policy, the objective of which is to keep stable conditions, including credit, in order to maintain the parity between the U.S. dollar and the Bahamian dollar while allowing economic development to proceed. Although the U.S. dollar (as any other foreign currency) is subject to exchange control laws in The Bahamas, the parity between Bahamian dollars and U.S. dollars means that any business will accept either U.S. or Bahamian currency and many of the businesses that serve tourists have extra U.S. dollars on hand for the convenience of American tourists (who prefer receiving their change in U.S. dollars since most are on short visits). History The dollar replaced the poundBahamian pound The pound was the currency of the Bahamas until 1966.... at a rate of 1 dollar = 7 shillingShilling The shilling was an English coin first issued in 1548 for Henry VIII, although arguably the testoon issued about 1487 for H... s in 1966. This rate allowed the establishment of parity with the U.S. dollar, due to the sterling/dollar rate then being fixed at £1 = $2.80. It may also explain the unusual 15 cents coin, since this was roughly equivalent to 1 shilling. See also Economy of the BahamasEconomy of the Bahamas The Bahamas is a stable, developing nation with an economy heavily dependent on tourism and offshore banking.... Central banks and currencies of the CaribbeanCentral banks and currencies of the Caribbean This is a list of the central banks and currencies of the Caribbean.... External links