BSD (Bahamian Dollar)

DEFINITION of 'BSD (Bahamian Dollar)'

The currency abbreviation or currency symbol for the Bahamian dollar (BSD), the currency of the Bahamas. The Bahamian dollar is made up of 100 cents, and is often presented with the dollar sign as B$ to allow it to be distinguished from other currencies denominated in dollars, such as the U.S. dollar (USD). BSD is pegged to the U.S. dollar at parity; as a result, businesses in the Bahamas accept either currency.

BREAKING DOWN 'BSD (Bahamian Dollar)'

The Bahamian dollar replaced the British pound in 1966 at a rate of 7 shillings to 1 Bahamanian dollar. This rate was established based on parity with the U.S. dollar because the fixed exchange rate of the GBP/USD was 1 pound = 2.8 U.S. dollars. Due to this parity, the Bahamas operates under what is known as a bimonetary system, in which both the Bahamian dollar and the U.S. dollar are national currencies.

RELATED TERMS
  1. CAD

    What currency is CAD? CAD is the currency abbreviation or currency ...
  2. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
  3. CAD (Canadian Dollar)

    The currency abbreviation or currency symbol for the Canadian ...
  4. Dollar Rate

    The exchange rate of a currency against the U.S. dollar (USD). ...
  5. USD (United States Dollar)

    The currency abbreviation for the United States dollar (USD), ...
  6. NZD (New Zealand Dollar)

    The currency abbreviation or currency symbol for the New Zealand ...
Related Articles
  1. Retirement

    Is $200,000 Enough to Retire in the Bahamas?

    As paradise goes, the Bahamas are not cheap, but these gorgeous islands may be a more affordable retirement destination than you expect.
  2. Trading

    Play Foreign Currencies Against The U.S. Dollar And Win

    Don't panic when the dollar drops. Learn to exploit the greenback's decline and profit from it.
  3. Trading

    The 6 Most-Traded Currencies And Why They're So Popular

    Regardless of the reason, forex is an integral part of 21st century finance. And the more widely used and reliable the currency, the greater the likelihood of people buying and selling it every ...
  4. Trading

    Forex Tutorial: Reading a Forex Quote and Understanding the Jargon

    One of the biggest sources of confusion for those new to the currency market is the standard for quoting currencies. In this section, we'll go over currency quotations and how they work in currency ...
  5. Trading

    Profiting From A Weak U.S. Dollar

    Learn how to allocate your investments when the U.S. dollar is down.
  6. Trading

    The U.S. Dollar's Unofficial Status as World Currency

    Discover how and why the U.S. dollar emerged as official currency in many foreign countries.
  7. Trading

    The 6 Most-Traded Currencies And Why They're So Popular

    Every currency has specific features that affect its underlying value and price movements in the forex market.
  8. ETFs & Mutual Funds

    USDU: WisdomTree Bloomberg US Dllr Bullish ETF

    Explore an analysis of information on the WisdomTree Bloomberg U.S. Dollar Bullish Fund, a currency ETF that tracks the overall performance of the U.S. dollar.
  9. Markets

    Will the Yuan Become an International Reserve Currency?

    Although still a matter of when, China is likely to reach a significant milestone when the International Monetary Fund decides to include the Chinese yuan in its special drawing rights basket ...
  10. Trading

    Using Interest Rate Parity To Trade Forex

    Learn the basics of forward exchange rates and hedging strategies to understand interest rate parity.
RELATED FAQS
  1. Why is the Bahamas considered a tax haven?

    Find out why the Bahamas is an international tax haven. Learn about business and tax laws that make the Bahamas attractive ... Read Answer >>
  2. What do the terms weak dollar and strong dollar mean?

    The two terms, weak dollar and strong dollar, are generalizations used in the foreign exchange market to describe the relative ... Read Answer >>
  3. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
  4. How can I get 100k in a Canadian bank to a U.S. Investment firm with minimal loss ...

  5. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
  6. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center