The official currency of The Bahamas is the Bahamian Dollar. However, it is not the only accepted currency in the country.
In this article, we’re going to answer the most common questions we receive about the currency of The Bahamas and share important currency related considerations if you are planning on banking here.
This article is part of our free series on how to open a bank account in the Bahamas, which you can access by clicking here right now.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Currency of The Bahamas
- Where Can You Exchange Money in The Bahamas?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Currency of The Bahamas
The currency of The Bahamas is the Bahamian Dollar (BSD). However, USD is widely accepted as an alternative currency and the BSD is pegged 1:1 to the USD. Additionally, when it comes to banking in The Bahamas as a foreign non-resident, you will almost always be banking in USD or any other major reserve currency.
In the following sections of the article, we will discuss currency exchange, local payments, banking and financial services in The Bahamas, and answer common questions we receive from our members. This will be important to understand, especially if you are looking to send money to The Bahamas frequently. But also, for anyone considering opening a personal bank account in The Bahamas or investing in local real estate.
Likewise, businesses considering local operations or opening a business bank account in The Bahamas will want to understand how their home currency compares to BSD and USD. The same goes for anyone looking to open private bank accounts in The Bahamas.
That said, The Bahamas is an offshore banking jurisdiction. So, prospective customers should consider the costs of opening a Bahamas bank account before contacting Bahamas banks directly. Not to mention, the benefits of banking in The Bahamas and how your specific client profile can unlock them
To get more insights on banking in The Bahamas, access any of our free resources covering the requirements to open bank accounts in The Bahamas and much more. Of course, if you want to unlock instant access to the best banks in The Bahamas, you can use GlobalBanks IQ to get started immediately.
Where Can You Exchange Money In The Bahamas?
Where you can exchange money in The Bahamas depends on the amount you want to exchange, the fees you’re willing to pay, and where in the country you’re located. That said, most people elect to either exchange money at currency exchanges, branches of major banks, the airport, or hotels.
Of course, exchange rates and fees will vary drastically between each of these options. So, it’s very important to compare the exchange rates and additional costs that each of these options will charge you before choosing which method to use.
That said, in most cases, exchanging money is not necessary. If you are entering the country with USD, you will be able to use paper USD in almost all instances. Likewise, if you are banking in The Bahamas, it is common for account holders to transact in international currencies including USD, CAD, GBP, and others. That said, like banking elsewhere, it’s important to consider the risks of banking in The Bahamas before applying.
Do Vendors In The Bahamas Accept Other Currencies?
Yes, vendors in The Bahamas accept other currencies in addition to the Bahamian dollar. However, this is typically limited to using US dollars (USD), to which the BSD is pegged at a rate of 1:1. That said, a wide range of other currencies can be accessed when banking in The Bahamas.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people asking about the currency of The Bahamas. If you have further questions you would like answered, don’t hesitate to get in touch.
Can You Use USD in The Bahamas?
Yes, you can use USD in The Bahamas. In fact, the US dollar is widely accepted throughout The Bahamas and is used as frequently as the Bahamian dollar. This is mainly due to the fact that the currencies are equal in value. In other words, one Bahamian dollar is pegged to the value of one US dollar. Of course, if you are traveling from outside of the US, you will need to convert your money before using it locally.
What Is the Best Currency to Use in The Bahamas?
The best currency to use in The Bahamas is either the Bahamian dollar or the US dollar. This is because the US dollar is widely accepted everywhere in The Bahamas. So, it isn’t necessary to exchange your USD for Bahamian. In fact, it is very common for tourists (and even locals) to use the US dollar when making a transaction. That said, when conducting banking transactions as a foreign non-resident, you will likely be using international currencies, including USD, CAD, GBP, and others.
Why Is the Bahamian Dollar Equal to USD?
The Bahamian dollar is equal to the USD because it is “pegged” to the value of the dollar at a rate of 1:1. Pegging currencies allows smaller jurisdictions like the Bahamas to reduce foreign exchange risk and stabilize their economies. This is especially common when jurisdictions have close economic ties, which The Bahamas and the United States do have. This is especially important when looking to maintain price stability in imports, exports, and consumption by foreign tourists.
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