Ten Facts about the Bermudian Dollar

Did you know that the IBNS (or International Bank Note Society) has once named the $2 Bermudan bill as the Banknote of the Year?   The year was 2010; an award for possessing the most interesting paper money was handed to the Bermuda Monetary Authority. Due to the unique features of the currency, the Bermudan Dollar, along with the hard work of currency team behind it, the group received a pat on the back from local and international audiences. That being said, can it be inferred that the Bermudian Dollar, as a currency unit, is valuable to currency traders?   Here’s a list of ten facts about the currency:

  1. It was officially introduced on February 6, 1970; before its adoption, the residents of Bermuda referred to the pound sterling (and some US and Canadian coins) as their monetary unit. However, when the pound sterling faced threats of devaluation, the Monetary Authority of Bermuda stepped up by establishing its own currency. 2. It is the official currency of the British Territory of the Bermuda, or simply, Bermuda. 3. It is the residents of Bermuda and the United States who use it for trading. There may be times when it is the chosen currency of traders who reside outside of the area; those instances, however, are quite rare. 4. By the Monetary Authority of Bermuda, it was issued an ISO 4217 code of BMD. 5. Its coins were distributed in different denominations such as 1 cents, 5 cents, 10 cents, 25 cents, and 50 cents. 6. Its banknotes were designed to feature unique things from Bermuda such as the Bermudan long tail, Bermudan map, and Bermudan Coat of Arms; the list of denominations includes $2, $5, $10, $20, $50, and $100.  7. It was recorded to have an average of around 2 % inflation rate in 2012 up to 2015; it is reflective of the thriving economic condition of Bermuda. 8. It is an uncommon and exotic currency; so they can grasp its value, importers and exporters, as well as currency traders in the foreign exchange market, are using the value of the USD (or United States Dollar) as basis. 9. Another reason as to why it was pegged to the value of the USD is to make way for effortless transactions with American tourists and major US firms. 10. It was in 2008 when the Monetary Authority of Bermuda proposed for its design to be renewed; a currency team was employed to create “more attractive” features. Since then, it was praised for carrying a “distinctly Bermuda” design.   Contribution: Mr. Ahmad has contributed from Admiral Markets 

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