While Barbados is a relatively small country, it accounts for a fair amount of money flowing in and out of its shores, from and to the United States. In 2016, around U.S. $61 million entered Barbados from the United States as remittances. Around U.S. $3 million was sent in the opposite direction in the same year. Trade of goods between both countries during 2017 accounted for more than U.S. $574 million.
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The U.S. dollar, in its current form, was adopted as the official currency of the United States in 1792. Now, it is used as official currency in other places too. These include the Caribbean, two British Overseas Territories, Turks and Caicos Islands, the British Virgin Islands, and Zimbabwe. Its unofficial use is prevalent in numerous places, some of which include Haiti, Belize, Panama, Costa Rica, Myanmar, Nepal, and Cambodia.
Apart from being the world’s most commonly traded currency, the U.S. dollar is also the most preferred reserve currency globally. Its share of the global forex market turnover was 87.6% in April 2016. Forex market estimates suggest that over U.S. $5 trillion is traded internationally each day.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
The first dollar-denominated currency introduced in Barbados, in 1882, came in the form of private banknotes. Some of the private banknotes also came with denominations in pound sterling from 1920. After the British West Indies dollar was introduced in 1949, the Barbadian dollar was officially linked to currencies of other British Eastern Caribbean territories. Private dollar-denominated banknotes in Barbados were issued for the last time in 1949.
In 1965, use of the British West Indies dollar in Barbados was replaced by the Eastern Caribbean dollar. The Barbadian dollar is its currency form was adopted as the official currency of Barbados in May 1972. In 1973, it replaced the East Caribbean dollar at par. From July 1975, the value of the Barbadian dollar has been pegged to the U.S. dollar.
|Currency symbol||Bds$, $|
|Bank notes||$2, $5, $10, $20, $50, $100|
|Coins||1, 5, 10, 25 cents, $1|
U.S. Dollar / Barbadian Dollar Historical Rates
The Barbadian dollar’s value has been pegged to the U.S. dollar since July 1975, at the rate of U.S. $1 = Bds$2. While most merchants and businesses in Barbados offer this fixed rate, exchange currency at airports might result in lower rates coupled with service fees.
As long as the Barbadian dollar’s peg to the U.S. dollar stays in place, there will be little to no fluctuation in the USD/BBD exchange rate. However, the pair might experience slight volatility at the trading level, as has happened previously. For instance, the USD/BBD exchange rate has experienced some fluctuation from mid 2012, with the Barbadian dollar trading in between Bds$1.9700 and Bds$2.0566 against the U.S. dollar.
USD/BBD in the last five years
|U.S. $1 =|
|1 July, 2013||Bds$1.9850|
|1 July, 2014||Bds$2.0082|
|1 July, 2015||Bds$2.0050|
|1 July, 2016||Bds$2.0050|
|1 July, 2017||Bds$2.0016|
USD/BBD in the last five months
|U.S. $1 =|
|1 April, 2018||Bds$2.0016|
|1 May, 2018||Bds$2.0007|
|1 June, 2018||Bds$2.0016|
|1 July, 2018||Bds$2.0016|
|1 August, 2018||Bds$2.0016|
What Affects USD/BBD Rates?
There will be little change in the USD/BBD exchange rate as long as the Barbadian dollar remains pegged to the U.S. dollar. However, a revision in the peg may come about owing to a range of factors, some of which include major economic changes in both countries, as well as their interest rates, gross domestic products (GDPs), and trade balances. Given Barbados’ reliance on the U.S. for trade and investment, it is unlikely that there will be a revision in the USD/BBD peg anytime soon.
If you plan to send money from Barbados to the United States or the other way around, it is important that you look beyond the USD/BBD exchange rate on offer. Other factors you need to take into account include the fees you need to pay, the turnaround time, as well as available payment and transfer methods.