Bermudian Dollar (BMD) in 2025: Current Value, History, and How It Works

Thomas J Catalano, a Certified Financial Planner and Registered Investment Adviser based in South Carolina, founded his financial advisory firm in 2018. His expertise spans investments, retirement, insurance, and comprehensive financial planning.

What Is the Bermudian Dollar (BMD)?

The Bermudian Dollar (BMD) is the official currency of Bermuda, represented by the symbol BD$. Like the US dollar, it is divided into 100 cents. The BD$ notation distinguishes it from other dollar-denominated currencies, such as the US Dollar (USD).

Importantly, the Bermudian Dollar maintains a fixed exchange rate of 1:1 with the US Dollar, ensuring seamless currency interchangeability on the island.

Key Insights

• The Bermudian Dollar is Bermuda's official currency, an Atlantic island territory.
• It is pegged at parity with the US Dollar, which is widely accepted in Bermuda.
• Bermuda is a British Overseas Territory with its own parliament and currency.
• The Bermudian Dollar replaced the Bermudian Pound in 1970, which was previously pegged to the British Pound.
• The US accounts for approximately 75% of Bermuda's tourism and trade, reinforcing the currency link.

Understanding the Bermudian Dollar's History and Function

Introduced in 1970, the Bermudian Dollar replaced the Bermudian Pound, which mirrored the UK's pound sterling and was divided into shillings and pence. This change decimalized Bermuda's currency system and aligned its economy closer to the US market.

Initially, the exchange rate was set at 2.40 BD$ per British pound sterling. The Bermudian Dollar circulated alongside British currency until 1972, when it was officially pegged to the US Dollar at a 1:1 ratio.

Due to this peg, US Dollars are accepted throughout Bermuda, while other foreign currencies like the British Pound, Euro, and Canadian Dollar generally are not. The US Dollar remains the sole foreign currency widely accepted, reflecting Bermuda's strong economic ties with the United States.

Important Note

Despite their equal value, the Bermudian Dollar and US Dollar are distinct currencies. Transactions via credit cards or ATM withdrawals may incur international conversion fees.

Practical Tips for Visitors

When withdrawing cash in Bermuda, you will receive Bermudian Dollars. Since the BMD is a local currency not exchangeable outside Bermuda, any leftover currency should be converted back before leaving to avoid holding unusable notes.

Bermudian banknotes come in denominations of $2, $5, $10, $20, $50, and $100, while coins include 1, 5, 10, 25, and 50 cents, plus a $1 coin which replaced the previous $1 note.

The Early Monetary History of Bermuda

Bermuda’s first minted coins appeared around 1615, featuring wild boar images, earning the nickname "hog" or "hogge money." Later, the Spanish dollar was adopted, then replaced by the British pound sterling in 1842.

The pound sterling served as legal tender for over a century until 1972, when Bermuda pegged its new currency, the Bermudian Dollar, to the US Dollar.

Correction – As of 2024: Bermuda remains a British Overseas Territory, not an independent nation.

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