Cayman Islands dollar

Cayman Islands dollar
1992 25 cent coin
ISO 4217 Code	KYD
User(s)	Cayman Islands (UK)
Inflation	-0.1%
Source	[1], march 2009
Pegged with	KYD = 1.2 USD
Subunit
1/100	cent
Symbol	$
Coins	1, 5, 10, 25 cents
Banknotes	1, 5, 10, 25, 50, 100 dollars
Central bank	Cayman Islands Monetary Authority
Website	www.cimoney.com.ky

The dollar (currency code KYD) is the currency of the Cayman Islands. It is normally abbreviated with the dollar sign $, or alternatively CI$ to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents. It is the 9th-highest-valued currency unit in the world and the highest-valued dollar unit.^{[citation needed]}

History

The dollar was introduced in 1972, replacing the Jamaican dollar at par. Jamaican currency and the new Cayman Islands currency were both legal tender until August 31, 1972, when Jamaican currency ceased to be legal tender. The Cayman Islands dollar has been pegged to the U.S. dollar at 1 Cayman Islands dollar = 1.2 U.S. dollars since 1 April 1974^[1].

Coins

In 1972, coins in denominations of 1, 5, 10 and 25 cents were introduced. The 1 cent coins were struck in bronze, with the other denominations in cupro-nickel. From 1992, bronze- and nickel-clad steel replaced bronze and cupro-nickel, respectively.

Banknotes

In 1972, the Cayman Islands Currency Board introduced notes in denominations of 1, 5, 10 and 25 dollars. 40 dollar notes were introduced in 1981, however they revoked a few years later, followed by 100 dollars in 1982 and 50 dollars in 1987. In 1997, the Cayman Islands Monetary Authority (CIMA) took over issuance of paper money, issuing notes for 1, 5, 10, 25, 50 and 100 dollars.

Note: Rates obtained from these websites may contradict with pegged rate mentioned above

Half Pounds

The Cayman Islands dollar is not a true dollar in the sense that it is descended directly from the Spanish pieces of eight, as is the case with the US dollar, the Canadian dollar, and the East Caribbean Dollar. The Cayman Islands dollar is an off-shoot of the Jamaican dollar which is essentially a half pound sterling. Jamaica followed the pattern of South Africa, Australia, and New Zealand in that when it adopted the decimal system, it decided to use the half pound unit as opposed to the pound unit of account. The choice of the name dollar was motivated by the fact that the reduced value of the new unit corresponded more closely to the value of the US dollar than it did to the pound sterling. Other examples of dollars that are not true dollars for this same reason are, the Jamaican dollar, the Australian dollar, the New Zealand dollar, the Solomon Islands dollar, the Fiji dollar, the Namibian dollar, the Rhodesian dollar, and the Zimbabwe dollar.

Examples of dollars that are directly related to the original Spanish dollar unit are the US dollar, the Canadian dollar, the Newfoundland dollar, the East Caribbean dollar, the Belize dollar, the Guyanese dollar, the Bermuda dollar, the Bahamian dollar, the Trinidad and Tobago dollar, the Barbados dollar, the Hong Kong dollar, the Straits dollar, the Malayan dollar, the Singapore dollar, and the Brunei dollar.

See also

• Central banks and currencies of the Caribbean
• Economy of the Cayman Islands

References

External links