What is the KYD or Cayman Islands Dollar?
The Cayman Islands dollar, or KYD, is the currency of the Cayman Islands. Its currency sign is KYD. The Cayman Islands, comprising Grand Cayman, Little Cayman, and Cayman Brac, are a group of British overseas territories.
Historically, the Cayman Islands have served as a prominent offshore financial hub. The Cayman Islands dollar is available in coins and denominations of 1, 5, 10, 25, 50, and 100 dollars. The Cayman Islands Monetary Authority does currency management.
A Brief Overview of the Cayman Islands Dollar (KYD)
First used in 1972, the Cayman Islands dollar was a one-to-one replacement for the Jamaican dollar. Before the discontinuation of the Jamaican currency in 1972, both Cayman Island and Jamaican currencies were in use.
The Cayman Islands Dollar, also known by its acronym KYD, replaced the Jamaican dollar as the primary island currency in 1972. Coins struck by the World Coin Corporation are in the following denominations: 1 cent, 5 cents, 10 cents, and 25 cents. They make up the KYD in circulation. In the beginning, Thomas De La Rue and Company produced banknotes, or paper money, in the following denominations: $1, $5, $10, and $25. $ and CI$ are the two recognized symbols for the KYD. The money in denominations of $40, $50, and $100 was minted at the British Royal Mint.
The 1971 Currency Law was revised in 1974 to consider the parity of the KYD and the US Dollar, which is $1 = US $1.20. This statute, which is still in effect today, is known as the 1974 Currency Law. All money issued in the Cayman Islands has been under the control of the Cayman Islands Monetary Authority since 1997.
About the Islands of Cayman
The United Kingdom owns a collection of island territories known as the Cayman Islands. The island chain comprises the Caribbean Sea islands of Grand Cayman, Cayman Brac, and Little Cayman. The abundance of turtles in the area led Christopher Columbus to initially call the series of islands Las Tortugas. With their gorgeous beaches and no governmental control over the banking industry, the islands are mostly recognized for their tourist attractions and global financial services.
The Cayman Islands ratified its constitution in 2009, designating an appointed governor as the head of state, representing the monarch. The British monarchy still has authority over the islands.
George Town, the island nation’s capital, is home to the Cayman Islands National Museum. All the information regarding the islands’ histories can be found there for visitors. On the islands, elementary education is required and provided free of charge. The islands offer three colleges for those wishing to continue their education after high school.
A national disaster was declared after Hurricane Ivan devastated the islands in 2004. Its economy is so dependent on tourism that the resulting damages have reduced its appeal as a travel destination. The island has recovered most of its lost income over the following years, thanks to a concerted effort by the government to restore the losses.
A case study of KYD exchange
One Cayman dollar is worth 1.20 US dollars due to the KYD’s peg to the US currency. For illustration purposes, suppose you needed to convert $1,000 to KYD and were sending a wire transfer to the Cayman Islands. 833.60 Cayman dollars ($1,000/1.20) would be the outcome of the exchange.