Introduction

The official currency of the Cayman Islands is the Cayman Islands dollar. The Cayman Monetary Regulatory Authority International (Cmrai) oversees the issuance and redemption of this currency.

History of the Cayman Islands Currency

Following careful consideration by a dedicated committee, it was recommended that establishing a local currency would benefit the economic and political landscape of the Cayman Islands. This recommendation was approved by Her Majesty's Government, recognizing the rapid growth of the Cayman economy.

The Bank of Jamaica supported the initiative, providing valuable assistance during the transition. Official approval from the United Kingdom for a new, independent currency in the Cayman Islands was granted in September 1970, with the Currency Committee tasked with introducing the currency and drafting the necessary legislation.

In 1971, the Cayman currency was introduced based on a decimal system, initially featuring four banknotes ($1, $5, $10, and $25) and four coins (1 cent, 5 cents, 10 cents, and 25 cents). In 1981, $100 and $40 notes were introduced, followed by the $50 note in 1985.

In mid-1972, the Cayman Islands Government partnered with World Coin Corporation to issue various sets of proof coins. By November 1972, two coin programmes were launched: the Eight Coin Proof set and a special edition commemorating the silver wedding anniversary of Her Majesty the Queen. The issuance of numismatic coins continues to this day.

Today, Cmrai remains responsible for the issuance and redemption of Cayman Islands currency.

Establishment of the Currency Board

The Cayman Islands Currency Board was established under the Currency Law of 1971 to manage the physical issuance and redemption of currency. Over time, the Board's role expanded to include an active investment policy, the management of local assets, and potentially the establishment of a clearing system by opening accounts for local commercial banks.

The Cayman Islands Currency Board began its operations on May 1, 1972, with the new currency issue. By the end of June 1972, J$710,895 in Jamaican notes and coins had been redeemed. The withdrawal process was straightforward: Jamaican currency held by banks was exchanged for Cayman currency through Barclays Bank International Limited, acting as the Board's agent. The Bank of Jamaica was informed of the amounts withdrawn, and the Currency Board's account with the Crown Agents in London was credited with the sterling equivalent. Jamaican currency remained legal tender until August 31, 1972, ensuring an adequate supply during the transition.