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By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online
To refer to this web file, please use "bermuda-online.org/money" as your Subject.
With
the Bermuda Government
tax on Bermuda dollars, combined with the Bermuda bank currency processing
charge, a Bermuda dollar is actually worth just about one percent less than one
hard currency US dollar.
The local-only Bermuda Dollar is not exportable. It is not used by traders world-wide. It is not cashable or exchangeable by any foreign banks. It is used only by local citizens and residents - not by international companies based in Bermuda (all of which use US dollars). One reason why is Bermuda's total land area of only 21.75 square miles or 35 square kilometers and 85% visitors', international businesses' and imports of consumer goods dependency on the USA.
Yet when visitors wish to use an ATM card in Bermuda to get money from their non-local bank before they go home, they receive Bermuda dollars only, which they cannot use in any other country except Bermuda.
Avoid getting a non-usable overseas currency beyond Bermuda by bringing only US dollars - freely accepted and officially at par everywhere - and if you get change from shops or restaurants in Bermuda money, ask for US dollars instead. If you work legally in Bermuda, are paid in Bermuda dollars and wish to send money back to your home country, go to the Bermuda bank where you are a customer to buy foreign exchange at the prevailing rate and arrange for a wire transfer, safer and far quicker than by postal mail. You can do this online.
Bermuda
currency began with Hogge Money, earliest of all colonial currencies,
issued in 1616 by the Bermuda Company. They were coins, not notes. They
were named after the wild hog found by the
first colonists, dropped off ships. They were left to swim ashore
by the Spanish and Portuguese in the 16th century.
In 1995, the collection of 15 pieces of Hogge Money was handed over to the Bermuda Monetary Authority on permanent loan, by the Bermuda National Parks Commission. Hogge Money was followed by the Bermuda Ship's Penny in 1793.
As they came before notes, coins are shown here first.
Today, coins in circulation are about the same size and shape as American coins. They are in values of $1 (it replaced the $1 bill), 25 cents, 10 cents, 5 cents and 1 cent. On the reverse sides, the $1 coin features the Bermuda Fitted Dinghy; the 25 cents the national bird, the Bermuda Longtail; the 10 cents the Bermuda Easter Lily; the 5 cents an Angel fish; and the 1 cent the pig on the original early 17th century Hogge Money. On their obverse, Her Majesty the Queen is profiled.
| They began in February 1970 (see "History of Bermuda
banknotes" below). Before then, the Currency Act of 1841
tied coins and notes to the United Kingdom. Until then,
currency notes were distinctly Bermudian yet tied to sterling. They were issued in British pounds
and shillings. Today's notes are tied to the American dollar and are
worth the same as the latter. They are in different
colors and as $2, $5, $10, $20, $50 and $100 notes, printed by Thomas De La Rue
of London. Like the USA dollar, their name is from the Scottish town of
Dollar.
Bermuda Monetary Authority graphic |
Above. 1883. First Bermuda Banknote. A Canadian $5 note printed for the Merchant Bank of Halifax and converted to a £1 1 shilling (one guinea) note for use in Bermuda.
Above. 1914. Proof of first Bermuda Government £1 note
1914, December 2. First Bermuda £1 note. Printed by the American Bank Note Company, showing King George V.
1920. Five shillings notes (re-issued 1935).
Above. 1927. September 30. A £1 note.
Above. 1941. These notes were issued after the US Bases were established, all showing Bermuda Government and King George VI. Only the orange note was circulated.
Above. May 1964.
US dollars may also be acquired by Bermudians and their families from the local banks for legitimate travel and related purposes such as overseas purchases, educational costs, support for family members abroad, subscriptions for newspapers and other needs. An exchange rate is paid to the local banks. There is no limit on how much Bermudians may buy. For more information, contact the Bermuda Monetary Authority (BMA).
Bermuda's three banks offer the Euro to all visitors and business executives or representatives heading for Ireland and countries of the continent of Europe where the Euro replaced their national currencies on January 1, 2002. However, it should be noted by incoming visitors from Europe where the Euro is now the single currency, that the Euro is not accepted in Bermuda. They should use US dollars as usual.
Last Updated: May
12, 2008
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