A considerable amount of money flows between the United States and the Bahamas for different reasons. While there is no conclusive data surrounding how much money is sent from the United States to the Bahamas as remittances, around U.S. $9 million was sent in the opposite direction in 2016. In 2017, bilateral trade of goods between both regions exceeded U.S. $3.58 billion.
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- Transfer Type
- Regular Payments
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- Min Transfer Amount
- Two Transfers Fee Free
- 1 - 3 Days
- $250 / £100 / €250
The United States adopted the dollar as its official currency in 1792. Now, its use as legal tender is also seen in the Caribbean, Turks and Caicos Islands, two British Overseas Territories, the British Virgin Islands, as well as Zimbabwe. Its use as an unofficial currency is common in several places, some of which include Belize, Haiti, Panama, Costa Rica, Nepal, Myanmar, and Cambodia.
The U.S. dollar has long maintained its position as the world’s most commonly traded currency as well as the most preferred reserve currency. Its share of the international forex market turnover stood at 87.6% in April 2016. It is estimated that more than U.S. $5 trillion makes its way through the foreign exchange market every 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 Bahamian dollar was introduced in 1966, seven years before the country gained independence from British rule. It replaced the then prevalent Bahamian pound at the rate of B$1 = 7 shillings. This rate allowed for the Bahamian dollar’s parity with the U.S. dollar, given that the then pound sterling / U.S. dollar rate stood at £1 = $2.80.
Circulation of Bahamian dollar-denominated coins began in 1966. Banknotes were introduced in 1968. The introduction of 15-cent coins and B$3 bills aimed to facilitate decimalization. This was because when the transition took place 15 cents equaled to one shilling, and three dollars were equal to around one pound.
The Bahamian dollar also serves as legal tender in Turks and Caicos Islands, alongside the U.S. dollar. The U.S. dollar is widely accepted by merchants and businesses in the Bahamas.
|Currency symbol||$, B$|
|Bank notes||$1/2, $1, $3, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 15c, 25c, 50c, $1, $2, $5|
U.S. Dollar / Bahamian Dollar Historical Rates
Since its introduction, the value of the Bahamian dollar has been pegged to the U.S. dollar. It has maintained this peg for over four decades now. The Central Bank of the Bahamas has set buying and selling rates for U.S. dollars from and to commercial banks at the rate of U.S. $1 = B$1 and U.S. $1 = B$1.0025, respectively. With cash transactions, the Bahamian dollar trades at par with the U.S. dollar.
There have been brief periods of minor fluctuations in the street value of the USD/BSD exchange rate, first from mid 2012 to early 2013, and then from late 2016. However, even then the value of the Bahamian dollar has fluctuated largely in between B$0.99 to B$1.005 against the U.S. dollar.
USD/BSD in the last five years
|U.S. $1 =|
|1 July, 2013||B$1.0000|
|1 July, 2014||B$1.0000|
|1 July, 2015||B$1.0000|
|1 July, 2016||B$1.0000|
|1 July, 2017||B$0.9908|
USD/BSD in the last five months
|U.S. $1 =|
|1 April, 2018||B$1.0007|
|1 May, 2018||B$1.0001|
|1 June, 2018||B$0.9992|
|1 July, 2018||B$0.9995|
|1 August, 2018||B$1.0003|
What Affects USD/BSD Rates?
As long as the Bahamian dollar remains pegged to the U.S. dollar, there will be little to no fluctuation in the USD/BSD exchange rate. In addition, given the dependence of the Bahamian economy on tourism from the U.S. and Canada, it is unlikely that the Central Bank of the Bahamas will decide to do away with the peg anytime soon. With strong ties between the United States and the Bahamas, it appears that the Bahamian dollar might remain stable in the near future.
There might be a threat to the economy of the Bahamas if there is a slump in tourism, and the Central Bank of the country might be forced to revalue the peg in such a scenario. However, maintaining parity with the U.S. dollar appears to be in the best interest of the Bahamian economy. The Central Bank takes different measures such as using its currency reserves and changing interest rates to maintain this parity.
There will be little difference in the USD/BSD exchange rate you get through different service providers when sending money from the Bahamas to the United States or the other way around. However, bear in mind that the cost of your transfer also depends on the fees you need to pay.