Bermuda Dollar Introduced 52 Years Ago

In 1972, the “UK Government decided to abolish the Sterling Area” and the Bermuda dollar exchange was fixed on par with the United States dollar, and “along with that came the introduction of the Bermuda dollar, which was launched on 6 February 1970.”

This is according to a document from the BMA which said, “The formation of the Bermuda Monetary Authority on 20 February 1969, by approval of the Bermuda Monetary Authority Act 1969, came about as a result of the preparations for the wind down of the Sterling Area, a group of countries that either pegged their currency to the pound sterling or issued pounds as their own currency.

“In 1972, the UK Government decided to abolish the Sterling Area altogether. Because of Bermuda’s dependence on the free movement of funds between the island and Great Britain, it became clear that it would be beneficial to make a break completely from sterling.

“On 31 July 1972, the Bermuda dollar exchange was fixed on par with the United States dollar, which at that time had a fixed value in terms of gold. The Bermuda Monetary Authority Act 1969 had been amended to allow the parity of the Bermuda dollar to be defined not only in terms of sterling, but also ‘of any other national or international currency, or of gold’.

“The decimalisation of Bermuda’s currency meant transitioning the entire island’s monetary system from using fractions to decimals. Along with that came the introduction of the Bermuda dollar, which was launched on 6 February 1970.

“Bermuda’s dollar at that time was equivalent to one United States dollar, or eight shillings four pence in the British pound sterling, which remained in circulation on the island for a short period of time afterwards.

“Once the Bermuda dollar came into effect, one of the BMA’s primary responsibilities was printing and issuing Bermuda currency notes and coins. ‘Decimalisation Day’ was declared and all local banks were closed for three days in order to facilitate the changeover of currency, which the BMA and Government had spent the previous year planning. The former Bermuda currency notes were gradually withdrawn from circulation, and by 30 June 1970, all of the old currency was demonetised, or stripped of its value and status as money.”

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