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.
