Barbados dollar
Encyclopedia
The dollar has been the currency of Barbados
since 1935. The present dollar has the ISO 4217
code BBD and is normally abbreviated with the dollar sign "$" or, alternatively, "Bds$" to distinguish it from other dollar-denominated currencies. It is divided into 100 cent
s. On 22 October 2010 it was reported that the international rating agency Standard & Poor's
(S&P) rated the currency of Barbados as "BBB-/A-3".
(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 shilling
s 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 Barbados 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 East 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 July 5, 1975, the Barbados dollar has been pegged
to the US dollar at US$1 = Bds$2.
For a wider outline of the history of currency in the region, see Currencies of the British West Indies
.
has been used. The 5¢ coin is struck in brass
, whilst the highest 3 denominations are struck in cupronickel
. The $1 coin is a 7-sided equilaterally-curved piece. Many of the coins in circulation have been struck at the Royal Canadian Mint
.
The reverse of the 5 cent coin depicts the South Point Lighthouse
, the oldest lighthouse in Barbados.
The Royal Bank of Canada
introduced notes in 1909, in denominations of 5, 20 and 100 dollars. From 1920, these notes also bore the denomination in sterling, with 5 dollars = 1 pound 10 pence, 20 dollars = 4 pounds 3 shillings 4 pence and 100 dollars = 20 pounds 16 shillings 8 pence. Notes were issued until 1938. The Canadian Bank of Commerce
issued notes between 1922 and 1940, also in denominations of 5, 20 and 100 dollars.
Between 1938 and 1949, the government issued notes in denominations of 1, 2, 5, 20 and 100 dollars. All bore the portrait of King George VI.
In 1973, the Central Bank of Barbados introduced notes in denominations of 1, 5, 10, 20 and 100 dollars. The 1 dollar note was not issued again, with 2 dollar notes introduced in 1980, followed by 50 dollars in 1989. Banknotes currently in circulation are:
The defunct 1 dollar note was red in colour and had Samuel Jackman Prescod on the obverse.
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
since 1935. The present dollar has the ISO 4217
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...
code BBD and is normally abbreviated with the dollar sign "$" or, alternatively, "Bds$" to distinguish it from other dollar-denominated currencies. It is divided into 100 cent
Cent (currency)
In many national currencies, the cent is a monetary unit that equals 1⁄100 of the basic monetary unit. Etymologically, the word cent derives from the Latin word "centum" meaning hundred. Cent also refers to a coin which is worth one cent....
s. On 22 October 2010 it was reported that the international rating agency Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
(S&P) rated the currency of Barbados as "BBB-/A-3".
History
The history of currency in the British colony of Barbados closely follows that of 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 eightPieces of Eight
Pieces of Eight is the eighth studio album and second concept album by Styx, released September 1, 1978.The album was the band's follow-up to their Triple Platinum selling The Grand Illusion album....
(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
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
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 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s 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
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
.
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 Barbados 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 East Caribbean dollar
East Caribbean dollar
The East Caribbean dollar is the currency of eight of the nine members of the Organisation of Eastern Caribbean States...
replaced the British West Indies dollar in Barbados.
The present dollar was created after the establishment of the Central Bank of Barbados
Central Bank of Barbados
The Central Bank of Barbados is the national monetary authority responsible for providing advice to government of Barbados on banking and other financial and monetary matters. The Central Bank of Barbados, was established by Act of parliament on 2 May 1972...
(CBB), which was founded by an Act of parliament
Parliament of Barbados
The Parliament of Barbados is the national legislature of Barbados. It is accorded legislative supremacy by Chapter V of the Constitution of Barbados. The Parliament is bicameral in composition and is formally made up of: HM Queen Elizabeth II, Queen of Barbados The Parliament of Barbados is the...
in May, 1972. The Barbados dollar replaced the East Caribbean dollar at par in 1973. Since July 5, 1975, the Barbados dollar has been pegged
Fixed exchange rate
A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.A fixed exchange rate is usually used to...
to the US dollar at US$1 = Bds$2.
For a wider outline of the history of currency in the region, see Currencies of the British West Indies
Currencies of the British West Indies
This article examines the monetary systems that prevailed in the region known as the British West Indies in the nineteenth and twentieth centuries. The territories covered in this article include British Guiana on the South American mainland, British Honduras in Central America, Bermuda, the...
.
Coins
In 1973, coins were introduced in denominations of 1¢, 5¢, 10¢, 25¢, and $1. Until 1991, the 1¢ was struck in bronze. Since 1992, copper-plated zincZinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
has been used. The 5¢ coin is struck in brass
Brass
Brass is an alloy of copper and zinc; the proportions of zinc and copper can be varied to create a range of brasses with varying properties.In comparison, bronze is principally an alloy of copper and tin...
, whilst the highest 3 denominations are struck in cupronickel
Cupronickel
Cupronickel or copper-nickel or "cupernickel" is an alloy of copper that contains nickel and strengthening elements, such as iron and manganese. Cupronickel is highly resistant to corrosion in seawater, because its electrode potential is adjusted to be neutral with regard to seawater...
. The $1 coin is a 7-sided equilaterally-curved piece. Many of the coins in circulation have been struck at the Royal Canadian Mint
Royal Canadian Mint
The Royal Canadian Mint produces all of Canada's circulation coins, and manufactures circulation coins on behalf of other nations. The Mint also designs and manufactures: precious and base metal collector coins; gold, silver, palladium, and platinum bullion coins; medals, as well as medallions and...
.
The reverse of the 5 cent coin depicts the South Point Lighthouse
South Point Lighthouse
South Point Lighthouse is a lighthouse located in the south of Barbados. Its height is 89 ft.It is the oldest lighthouse in Barbados. It was brought to Barbados in 1852, one year after being shown at London’s Great Exhibition, and reassembled on the southernmost point of the island...
, the oldest lighthouse in Barbados.
Banknotes
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
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
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
Canadian Bank of Commerce
The Canadian Bank of Commerce was a Canadian bank cofounded in 1867 by William McMaster. The Canadian Bank of Commerce opened in Toronto with a charter in 1866 that it purchased from the defunct Bank of Canada, which folded in 1858....
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.
In 1973, the Central Bank of Barbados introduced notes in denominations of 1, 5, 10, 20 and 100 dollars. The 1 dollar note was not issued again, with 2 dollar notes introduced in 1980, followed by 50 dollars in 1989. Banknotes currently in circulation are:
- 2 dollars (blue)
- 5 dollars (green)
- 10 dollars (brown)
- 20 dollars (purple)
- 50 dollars (orange)
- 100 dollars (grey)
The defunct 1 dollar note was red in colour and had Samuel Jackman Prescod on the obverse.