The pound was the currency of
Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
until 1970. It was equivalent to
sterling, alongside which it circulated, and was similarly divided into 20
shillings each of 12 pence. Bermuda
decimalised in 1970, replacing the pound with the
Bermudian dollar
The Bermudian dollar (symbol: $; code: BMD; also abbreviated BD$; informally called the Bermuda dollar) is the official currency of the British Overseas Territory of Bermuda. It is subdivided into 100 cents. The Bermudian dollar is not n ...
at a rate of $1 = 8s.4d. (i.e., $1 = 100d), equal to the
US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
.
Coins
![Historic Bermuda Hog Money](https://upload.wikimedia.org/wikipedia/commons/e/e6/Historic_Bermuda_Hog_Money.png)
The first Bermudian currency issue was the so-called "hogge money", 2d, 3d and 6d, and 1/– coins issued between 1612 and 1624. Their name derives from the appearance of a pig on the obverse. At this time, Bermuda was known as Somers Island (which is still an official name) and this name appears on the coins. The next coins to be issued were copper pennies in 1793. When Bermuda adopted the
sterling currency system in the first half of the nineteenth century, the coinage that circulated was exactly the standard sterling coinage that circulated in the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
. No special varieties of coinage were ever issued for general use in
Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
. However, special silver
crowns
A crown is a traditional form of head adornment, or hat, worn by monarchs as a symbol of their power and dignity. A crown is often, by extension, a symbol of the monarch's government or items endorsed by it. The word itself is used, partic ...
(five shillings) were issued in 1959 and again in 1964. These commemoratives were similar in appearance to the British crowns, but featured Bermudian designs on their reverses. The first issue has a map of the islands to mark their 350th anniversary of settlement. The second coin shows the islands'
coat of arms
A coat of arms is a heraldic visual design on an escutcheon (i.e., shield), surcoat, or tabard (the latter two being outer garments). The coat of arms on an escutcheon forms the central element of the full heraldic achievement, which in its ...
.
Bermuda 1964 Crown
/ref> Because of the rising price of precious metals, the diameter of the 1964 issue was reduced from 38 to 36 millimeters and the silver content dropped from 92.5% to 50%. Their respective mintages were 100,000 and 500,000 (30,000 of the latter being issued in proof). Both coins remain readily available to collectors.
Banknotes
In 1914, the government introduced £1 notes. In 1920, 5/– notes were introduced, followed by 10/– in 1927 and £5 in 1941. The 5/– note ceased production in 1957, with £10 notes introduced in 1964.
History
For nearly four hundred years Spanish dollar
The Spanish dollar, also known as the piece of eight ( es, Real de a ocho, , , or ), is a silver coin of approximately diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content ...
s, known as pieces of eight
The Spanish dollar, also known as the piece of eight ( es, Real de a ocho, , , or ), is a silver coin of approximately diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content ...
, were in widespread use on the world's trading routes, including the Caribbean Sea region. However, following the revolutionary wars in Latin America, the source of these silver trade coins dried up. The last Spanish dollar
The Spanish dollar, also known as the piece of eight ( es, Real de a ocho, , , or ), is a silver coin of approximately diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content ...
was minted at the Potosi mint in 1825.
The United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
had adopted a very successful gold standard in 1821, and so the year 1825 was an opportune time to introduce the British sterling coinage into all the British colonies. An imperial order-in-council was passed in that year for the purposes of facilitating this aim by making sterling coinage legal tender in the colonies at the specified rating of $1 = 4s.4d. (One Spanish dollar to four shillings and four pence sterling). As the sterling silver coins were attached to a gold standard, this exchange rate did not realistically represent the value of the silver in the Spanish dollars
The Spanish dollar, also known as the piece of eight ( es, Real de a ocho, , , or ), is a silver coin of approximately diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content ...
as compared to the value of the gold in the British gold sovereign, and as such, the order-in-council had the reverse effect in many colonies. It had the effect of actually driving sterling coinage out, rather than encouraging its circulation.
Remedial legislation had to be introduced in 1838 so as to change over to the more realistic rating of $1 = 4s.2d. However, in Jamaica
Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of His ...
, British Honduras
British Honduras was a British Crown colony on the east coast of Central America, south of Mexico, from 1783 to 1964, then a self-governing colony, renamed Belize in June 1973, , Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
, and later in the Bahamas
The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to 88% of the ar ...
also, the official rating was set aside in favour of what was known as the 'Maccaroni' tradition in which a sterling shilling, referred to as a 'Maccaroni', was treated as one quarter of a dollar. The common link between these four territories was the Bank of Nova Scotia
The Bank of Nova Scotia (french: link=no, Banque de Nouvelle-Écosse), operating as Scotiabank (french: link=no, Banque Scotia), is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. One of Canada ...
which brought in the 'Maccaroni' tradition, resulting in the successful introduction of both sterling coinage and sterling accounts.
It wasn't until 1 January 1842 that the authorities in Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
formally decided to make sterling the official currency of the colony to circulate concurrently with Doubloon
The doubloon (from Spanish ''doblón'', or "double", i.e. ''double escudo'') was a two-''escudo'' gold coin worth approximately $4 (four Spanish dollars) or 32 '' reales'',
and weighing 6.766 grams (0.218 troy ounce) of 22-karat gold (or 0.917 fi ...
s (64 shillings) at the rate of $1 = 4s.2d. Contrary to expectations, and unlike in the Bahamas
The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to 88% of the ar ...
where US dollars
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
circulated concurrently with sterling, the Bermudas did not allow themselves to be drawn into the U.S. currency area. The Spanish dollar
The Spanish dollar, also known as the piece of eight ( es, Real de a ocho, , , or ), is a silver coin of approximately diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content ...
s fell away in the 1850s but returned again in the 1870s following the international silver crisis of 1873. In 1874, the Bermuda merchants agreed unanimously to decline to accept the heavy imports of U.S. currency except at a heavy discount, and it was then exported again. And in 1876, legislation was passed to demonetize the silver dollars.
In 1882, the local 'legal tender act' demonetized the gold doubloon
The doubloon (from Spanish ''doblón'', or "double", i.e. ''double escudo'') was a two-''escudo'' gold coin worth approximately $4 (four Spanish dollars) or 32 '' reales'',
and weighing 6.766 grams (0.218 troy ounce) of 22-karat gold (or 0.917 fi ...
, which had in effect been the real standard in Bermuda, and this left sterling as the sole legal tender. Sterling then remained the official currency of Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
until 1970.
Due to the collapse of sterling as the world's reserve currency and the rise of the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
, Bermuda introduced a dollar based currency that was fixed at an equal value to the US dollar. The new Bermuda dollars operated in conjunction with decimal fractional coinage, hence ending the £sd
£sd (occasionally written Lsd, spoken as "pounds, shillings and pence" or pronounced ) is the popular name for the pre-decimal currencies once common throughout Europe, especially in the British Isles and hence in several countries of the ...
system in that colony in the year before it was ended in the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
itself. The decision to finally align with the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
was at least in part influenced by the devaluation of sterling in 1967 and Bermuda's increasing tendency to keep its reserves in US dollars. Although Bermuda changed to a U.S. based currency and changed the bulk of its reserves from sterling to U.S. dollars in 1970, it still nevertheless remained a member of the sterling area since at that time, sterling and the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
had a fixed exchange rate of £1 = $2.40.
Following the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
crisis of 1971 which ended the international Bretton Woods Bretton Woods can refer to:
*Bretton Woods, New Hampshire, a village in the United States
**Bretton Woods Mountain Resort, a ski resort located in Bretton Woods, New Hampshire
*The 1944 Bretton Woods Conference, also known as the "United Nations Mo ...
agreement of 1944, the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
devalued, but the Bermuda dollar maintained its link to sterling. On 22 June 1972, the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
unilaterally ended its sterling area based exchange control laws, hence excluding Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
from its sterling area membership privileges. Bermuda responded on 30 June 1972 by amending its own exchange control laws accordingly, such as to impose exchange control restrictions in relation to Bermuda only. At the same time, Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
realigned its dollar back to one-to-one with the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
and formally pegged it to the US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
at that rate. As far as United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
law was concerned, Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
still remained a member of the overseas sterling area until exchange controls were abolished altogether in 1979.
For a history of currency in the British West Indies
The British West Indies (BWI) were colonized British territories in the West Indies: Anguilla, the Cayman Islands, Turks and Caicos Islands, Montserrat, the British Virgin Islands, Antigua and Barbuda, The Bahamas, Barbados, Dominica, Grena ...
in general, see Currencies of the British West Indies
The region known as the British West Indies included British Guiana on the South American mainland, British Honduras in Central America, Bermuda, The Bahamas, and Jamaica, along with its former dependencies of the Cayman Islands and the Turks and C ...
.
References
*
*
* Chalmers, R., "A History of Currency in the British Colonies" (1893)
External links
{{DEFAULTSORT:Bermudian Pound
Currencies of the British Empire
Currencies of the Commonwealth of Nations
Economy of Bermuda
Currencies of North America
Modern obsolete currencies
1970 disestablishments