KYD (Cayman Islands Dollar)
Candlefocus EditorThe Cayman Islands Monetary Authority (CIMA) is the custodian of the Cayman Islands dollar, issuing and maintaining notes and coins in circulation. CIMA also plays a key role in the oversight of financial and banking regulation in the Cayman Islands.
The issuance of the Cayman Islands dollar occurs on a managed float system, closely linked to the value of the US dollar. The currency is not issued directly by the Government, but rather by commercial banks and the Cayman Islands Monetary Authority.
The Cayman Islands dollar circulates in the Cayman Islands alongside the US dollar and the two exchange rules are harmonized, which means that they can be exchanged freely between them. The US dollar is the main currency in the Cayman Islands and even though the KYD is the official currency, it is not the most widely used.
The Cayman Islands dollar is available in various denominations, with coins in 1, 5, 10, 25 and 50 cents, 1 and 2 dollar denominations. The notes come in 1, 5, 10, 25, 50 and 100 dollar denominations.
The Cayman Islands dollar is a preferred currency among international investors and other individuals who have significant exposure to international investments and financial transactions. As an offshore financial center, the Cayman Islands offers financial services and products that are not available elsewhere, making it a favorable option for international investors who seek the security and stability of an established jurisdiction.
The Cayman Islands dollar is the official currency on the islands, and its fixed exchange rate policy offers investors confidence and stability in their investment decisions. For example, the US dollar exchange rate remains absolutely stable, protecting investors from market volatilities that might otherwise exist within a free-floating currency system.
The Cayman Islands provides a safe, secure and consistent business environment, which makes it an attractive destination for many businesses. As a result, the Cayman Islands dollar is widely used in the various sectors of the economy, including international investments and financial services.
In conclusion, KYD is the currency of the Cayman Islands, an offshore financial center located in the Caribbean Sea. It is fixed to the U.S. dollar at the rate of KYD $1 = USD $1.20. KYD is mostly used for international investments, as it helps investors protect themselves from market volatility. The Cayman Islands Monetary Authority is the custodian of the currency, issuing and maintaining notes and coins in circulation.