Bermudian pound

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Bermudian pound
Unit
Symbol£‎
Denominations
Subunit
 1⁄20shilling (s or /–)
 1⁄240penny (d)
Banknotes5/–, 10/–, £1, £5, £10
Coins5/–
Demographics
User(s)Bermuda
Issuance
Central bankBermuda Government
Valuation
Pegged withsterling at par
This infobox shows the latest status before this currency was rendered obsolete.

The pound was the currency of

decimalised in 1970, replacing the pound with the Bermudian dollar at a rate of $1 = 8s.4d. (i.e., $1 = 100d), equal to the US dollar
.

Coins

"Hogge money" featured a hog on the obverse and a sailing ship on the reverse

The first Bermudian currency issue was the so-called "hogge money", 2d, 3d and 6d, and 1/– coins issued between 1612 and 1624. Their name derives from the appearance of a pig on the obverse. At this time, Bermuda was known as Somers Island (which is still an official name) and this name appears on the coins. The next coins to be issued were copper pennies in 1793. When Bermuda adopted the sterling currency system in the first half of the nineteenth century, the coinage that circulated was exactly the standard sterling coinage that circulated in the United Kingdom. No special varieties of coinage were ever issued for general use in Bermuda. However, special silver crowns (five shillings) were issued in 1959 and again in 1964. These commemoratives were similar in appearance to the British crowns, but featured Bermudian designs on their reverses. The first issue has a map of the islands to mark their 350th anniversary of settlement.[1] The second coin shows the islands' coat of arms.[2] Because of the rising price of precious metals, the diameter of the 1964 issue was reduced from 38 to 36 millimeters and the silver content dropped from 92.5% to 50%. Their respective mintages were 100,000 and 500,000 (30,000 of the latter being issued in proof). Both coins remain readily available to collectors.

Banknotes

In 1914, the government introduced £1 notes. In 1920, 5/– notes were introduced, followed by 10/– in 1927 and £5 in 1941. The 5/– note ceased production in 1957, with £10 notes introduced in 1964.

History

See also: Currencies of the British West Indies

For nearly four hundred years

pieces of eight, were in widespread use on the world's trading routes, including the Caribbean Sea region. However, following the revolutionary wars in Latin America, the source of these silver trade coins dried up. The last Spanish dollar was minted at the Potosi
mint in 1825.

The

Spanish dollars
as compared to the value of the gold in the British gold sovereign, and as such, the order-in-council had the reverse effect in many colonies. It had the effect of actually driving sterling coinage out, rather than encouraging its circulation.

Remedial legislation had to be introduced in 1838 so as to change over to the more realistic rating of $1 = 4s.2d. However, in

Bank of Nova Scotia
which brought in the 'Maccaroni' tradition, resulting in the successful introduction of both sterling coinage and sterling accounts.

It wasn't until 1 January 1842 that the authorities in

US dollars circulated concurrently with sterling, the Bermudas did not allow themselves to be drawn into the U.S. currency area. The Spanish dollars fell away in the 1850s but returned again in the 1870s following the international silver crisis of 1873. In 1874, the Bermuda merchants agreed unanimously to decline to accept the heavy imports of U.S. currency except at a heavy discount, and it was then exported again. And in 1876, legislation was passed to demonetize the silver dollars.

1941 £5 brown Bermuda banknote from the Ibrahim Salem collection, serial number A000001.[3]
1952 £1 banknote of Bermuda

In 1882, the local 'legal tender act' demonetized the gold doubloon, which had in effect been the real standard in Bermuda, and this left sterling as the sole legal tender. Sterling then remained the official currency of Bermuda until 1970.

Due to the collapse of sterling as the world's reserve currency and the rise of the

US dollar
had a fixed exchange rate of £1 = $2.40.

Following the

US dollar at that rate. As far as United Kingdom law was concerned, Bermuda still remained a member of the overseas sterling area
until exchange controls were abolished altogether in 1979.

References
  1. ^ Country: Bermuda
  2. ^ Bermuda 1964 Crown
  3. ^ Ibrahim Salem Collection and World Banknotes April 2019. Spink, 16 April 2019. You Tube. Retrieved 2 July 2019.

Bibliography

  • Krause, Chester L.; Clifford Mishler (1991).
    ISBN 0873411501
    .
  • Pick, Albert (1994).
    ISBN 0-87341-207-9
    .
  • Chalmers, R., "A History of Currency in the British Colonies" (1893)
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