What is 'BBD (Barbados Dollar)'

BBD is the currency abbreviation for the Barbados dollar, also called the Barbadian dollar. The Barbados dollar is often presented with the dollar sign Bds$, to distinguish it from other currencies denominated in dollars, such as the U.S. dollar, or USD.

BREAKING DOWN 'BBD (Barbados Dollar)'

The current Barbados dollar was created in 1972 after the establishment of the Central Bank of Barbados. It can be divided into 100 cents. BBD replaced the East Caribbean dollar at par, and since 1975 it has been pegged with the U.S. dollar at a rate of 2 BBD to 1 USD. In Barbados, U.S. currency is widely accepted. Exchanging money at the airport usually yields a slightly lower rate. BBD coins come in denominations of 1 cent, 5 cents, 10 cents, 25 cents and 1 dollar. Banknotes come in denominations of 2, 5, 10, 20, 50 and 100 dollars. 

History of the Barbados dollar

In 1882, the first dollar-based currency was issued in Barbados in the form of private bank notes. These notes were used along with British pounds as the nation's currencies. In 1935, the British West Indies dollar was issued at par with the Barbados dollars issued by private banks. Barbados dollars also began to be issued by the government between 1938 and 1949. The Eastern Caribbean dollar replaced the British West Indies dollar in 1965.

In 1972, the Central Bank of Barbados was established by an act of parliament. The current version of the Barbados dollar was introduced shortly thereafter. It was in 1975 that the Barbados dollar was pegged to the U.S. dollar at US$1 = Bds$2. The rate of the Barbados dollar to other currencies fluctuates daily based on those currencies' fluctuations relative to the U.S. dollar.

In 2016, the Barbados-based company Bitt introduced the Barbadian Digital Dollar, a blockchain-based digital currency. The company's goal is to provide banking solutions to underserved citizens of Barbados, which has long lacked a reliable banking system. Transactions involving the Barbadian Digital Dollar can be made almost instantaneously on digital devices.

In September of 2017, the Barbados dollar was effectively devalued when the government began charging a two percent fee on all transactions involving the use of foreign currency. The fee applies to purchases of foreign goods made outside of Barbados, purchases from foreign companies and remittances to family and friends. According to Finance Minister Chris Sinckler, the fee was introduced "in an effort to signal the need to reduce the demand for consumption goods." 

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