The Cayman Islands Dollar (KYD) is the official currency of the Cayman Islands, a British Overseas Territory located in the western Caribbean Sea.

The currency is issued and managed by the Cayman Islands Monetary Authority (CIMA), which serves as the country’s central bank.

The symbol for the Cayman Islands Dollar is “$” or “CI$” to distinguish it from other dollar-denominated currencies, and it is often abbreviated as “KYD.”

Subdivisions and Denominations

The Cayman Islands Dollar is subdivided into 100 smaller units called cents.

Coins are issued in denominations of 1, 5, 10, and 25 cents, as well as 1 Dollar.

Banknotes are available in denominations of 1, 5, 10, 25, 50, and 100 Dollars.

Fixed Exchange Rate

The Cayman Islands Dollar has a fixed exchange rate, which means its value is pegged to another currency, in this case, the United States Dollar (USD).

The fixed exchange rate provides stability for the local economy, as it reduces exchange rate risk and promotes trade and investment.

The pegged exchange rate also contributes to price stability in the country and helps maintain confidence in the Cayman Islands’ financial system.

Economy and Challenges

The Cayman Islands has a highly developed and prosperous economy, with a strong focus on tourism and financial services, particularly offshore banking and investment.

The country’s reputation as a tax haven has attracted significant foreign investment, leading to a high standard of living for its residents.

However, the Cayman Islands faces challenges related to its reliance on the financial sector, potential changes to global tax regulations, and vulnerability to natural disasters, such as hurricanes.

Summary

In summary, the Cayman Islands Dollar is the official currency of the Cayman Islands and is managed by the Cayman Islands Monetary Authority. It is subdivided into smaller units called cents and is issued in various banknote and coin denominations.

The Cayman Islands Dollar has a fixed exchange rate to the United States Dollar, which contributes to economic stability.

The Cayman Islands economy is highly developed and focused on tourism and financial services, but it faces challenges related to its reliance on the financial sector and vulnerability to external shocks.