What is the Jamaican Dollar (JMD)?
The Jamaican Dollar (JMD) serves as the official currency for the island nation of Jamaica, subdivided into 100 cents. Symbolized as J$ or JA$, this currency stands out with unique features and historic significance.
Key Takeaways
- Official Currency: The JMD is the abbreviated term for the Jamaican dollar, subdivided into 100 cents.
- Exchange Value: The most common exchange rate involves the US dollar (USD/JMD), with 1 USD equivalent to approximately 150.27 JMD as of April 2021.
- Historic Relevance: Unlike the Spanish or U.S. dollars, the JMD was the first to use a half-pound sterling as a base.
Understanding the Jamaican Dollar (JMD)
Jamaican dollar banknotes are available in denominations such as J$50, J$100, J$500, J$1,000, and J$5,000. These bills incorporate several security and accessibility features, including larger print symbols for the visually impaired. The front portrays notable Jamaican public figures, while the back showcases iconic Jamaican landmarks or scenery.
In Jamaica’s key tourist areas, U.S. dollars are widely accepted, but other regions prefer transactions in JMD. Note that businesses may set individual exchange rates, so it’s wise to check for any potential adverse rates beforehand. Although the Cayman Islands once utilized the Jamaican dollar, they no longer do.
Banknotes for Jamaica started being locally minted in 1960 by the Bank of Jamaica. Meanwhile, De La Rue Currency Ltd. in England has been a long-time producer since 1920. In 1968, Jamaica transitioned to a decimal currency system. Unique to its legacy, the JMD was based on the half-pound sterling instead of other prevalent global currencies.
The year 1969 marked the replacement of the Jamaican pound with the JMD. Various evolutiones have taken place since: coins replacing some denominations of the notes, the introduction of the J$1,000 note in 2000, and the debut of the J$5,000 note in 2009. Regulations by the Bank of Jamaica limit certain denominations for use in transactions.
Economic Insights:
As of 2019, Jamaica’s inflation rate hovered around 3.9%, with a GDP growth rate of 0.7%, based on the latest World Bank data.
History of the Jamaican Dollar (JMD)
Historically, Jamaica had used various currencies, corresponding to its colonial shifts. Initially, barter trade was the primary mode of transaction until currency was gradually introduced by the Spanish in the 16th century, followed by British currency for almost two centuries. Distinctive pound sterling coins became prominent when Jamaica was a British colony, setting it apart even among the British territories in the West Indies.
Related Terms: USD, foreign exchange market, inflation, gross domestic product (GDP).
References
- Bank of Jamaica. “Bank Notes”.
- Cayman Islands Monetary Authority. “Currency”.
- XE. “Convert 1 USD to JMD”.
- Bank of Jamaica. “History of our Currency”.
- Bank of Jamaica. “Related Legislation”.
- World Bank. “GDP Growth (Annual %) - Jamaica”.
- World Bank. “Inflation, Consumer Prices (Annual %) - Jamaica”.
