What is the currency of the Bahamas?

The currency of the Bahamas is the Bahamian dollar.

The Bahamian dollar is the official currency of The Bahamas, an island country in the Atlantic Ocean. It is divided into 100 cents and uses the international currency code BSD. The currency was introduced in 1966, replacing the Bahamian pound as the country moved toward a decimal monetary system.

The Bahamian dollar is pegged to the United States dollar at a one-to-one rate. Because of that parity, US dollars are widely accepted throughout the islands, especially in tourist areas. This practical arrangement can make the US dollar seem like the national currency, but the Bahamian dollar remains the official one.

The Central Bank of The Bahamas issues the country’s currency. In 2020, The Bahamas also introduced the Sand Dollar, one of the world’s first national central-bank digital currencies. The Sand Dollar is a digital form of Bahamian currency, not a replacement for the traditional notes and coins used in everyday transactions.

A useful distinction is that the Bahamian dollar is not the Jamaican dollar or the Eastern Caribbean dollar, even though all are used in the wider Caribbean region.