KYD is the abbreviation and symbol for the Cayman Islands Dollar, the official currency of the Cayman Islands—a British Overseas Territory comprising Grand Cayman, Little Cayman, and Cayman Brac.
Known globally as a major offshore financial hub, the Cayman Islands’ currency is managed by the Cayman Islands Monetary Authority (CIMA). The currency is available in banknotes of 1, 5, 10, 25, 50, and 100 dollars as well as coins.
Key Insights
- Currency Symbol: KYD is the recognized abbreviation or symbol.
- Exchange Rate: Pegged to the U.S. dollar at a fixed rate of KYD $1 = USD $1.20.
- Currency Symbols: Locally, KYD is represented by both $ and CI$.
Understanding the Cayman Islands Dollar (KYD)
Initially introduced in 1972 to replace the Jamaican dollar on a one-to-one basis, the KYD has since become the exclusive currency used within the territory. When it entered circulation, the currency included coins minted by the World Coin Corporation and banknotes originally produced by Thomas De La Rue and Company.
Purchasing power in higher denominations such as 40, 50, and 100 dollars is minted by the British Royal Mint, ensuring robust currency management under the 1974 Currency Law. Operating since 1997, the Cayman Islands Monetary Authority is responsible for issuing all KYD currency.
About the Cayman Islands
Situated in the Caribbean Sea, the Cayman Islands consist of three main islands: Grand Cayman, Cayman Brac, and Little Cayman. Initially called Las Tortugas by Christopher Columbus, these islands are renowned for their attractive tourism sector and offshore financial services.
The Cayman Islands wrote their own constitution in 2009, underscoring their semi-autonomous governance under a governor appointed by the British monarch. With a capital in George Town, the area enjoys a rich historical backdrop illustrated in the Cayman Islands National Museum.
Despite setbacks like Hurricane Ivan in 2004—which hampered its tourism-driven economy—the islands have shown resilience, bouncing back with substantial effort from their government. The financial services industry now contributes about 55% of the national economy, largely driven by fees for registering offshore companies and hedge funds.
Example of KYD Exchange
Given its fixed exchange rate, understanding transactions involving the KYD is straightforward. For instance, converting $1,000 U.S. dollars to KYD results in 833.60 Cayman dollars ($1,000/1.20).
This comprehensive guide delves into every facet of the Cayman Islands Dollar (KYD), illustrating not only its value and stability but also its integral role in the nation’s financial structure.
Related Terms: Forex, Banknote, Hedge Fund.
