British West Indies dollar facts for kids

Quick facts for kids British West Indies dollar
User(s)	West Indies Federation  British Guiana

The British West Indies dollar (BWI$) was a type of money used in several Caribbean countries. It was the official currency in British Guiana and the eastern parts of the British West Indies. This was from 1949 to 1965. It was also used in Jamaica for a short time, from 1954 to 1964.

The British Caribbean Currency Board (BCCB) was in charge of this currency. The BWI$ was the official money for the West Indies Federation. However, it was never used in places like British Honduras, the Cayman Islands, or the Bahamas.

History of the British West Indies Dollar

Early Money in the West Indies

For a long time, the Spanish dollar was the main currency in the British West Indies. This was even after Queen Anne tried to introduce the British pound sterling system in 1704. The Spanish dollar was very popular.

In 1822, the British government made special 'Anchor dollars' for places like Mauritius and the British West Indies. Later, copper coins were also made for these areas.

Trying to Use British Money

In 1825, the British government tried again to make British money common in the colonies. They wanted to use the successful gold sovereign system. Also, there weren't many Spanish dollars left because of wars in Latin America. The last Spanish dollar was made in 1825.

The 1825 plan didn't work well everywhere. This was because the exchange rate between the Spanish dollar and British money was not realistic. But it did work in Jamaica and Bermuda. They used a more sensible exchange rate.

New Exchange Rates and Changes

In 1838, a new rule set a better exchange rate. After this, the British West Indies started to use the British pound sterling more.

Around 1851, gold was found in Australia. This made silver dollars less common in the West Indies. But silver dollars came back when silver became cheaper after 1873. To stop this, laws were passed to remove silver dollars from use. British coins, even though they were silver, were linked to gold, so their value was stable.

How Money Was Tracked

During this time, people could keep their money records in either dollars or pounds. Jamaica and the Bahamas preferred pounds. British Guiana used dollars to help switch from the Dutch guilder system. In the Eastern Caribbean, businesses used dollars, but the government used pounds.

Some private banks in the Eastern Caribbean also printed their own dollar notes. These notes were worth 4 shillings and 2 pence in British money.

Creating a Unified Currency

In 1946, several Caribbean territories decided to create one unified money system. This new system would be based on a West Indian dollar. This would replace the three different currency boards they had.

In 1949, the British government officially introduced the British West Indies dollar (BWI$). It was set at an exchange rate of 4.80 BWI dollars for every British pound. This was one of many attempts by the British to create a single system in their West Indies territories. People often called it the "Beewee" dollar.

In 1950, the British Caribbean Currency Board (BCCB) was set up in Trinidad. This board was the only one allowed to print the new money. They had to keep enough foreign money to make sure the BWI$ could always be exchanged for British pounds at the set rate.

The British Virgin Islands joined in 1951. But they were closer to the US Virgin Islands and their currency. So, in 1959, the British Virgin Islands left the BWI$ system and started using the US dollar.

Coins and Banknotes

Until 1955, the BWI$ only existed as banknotes. British coins were used for smaller amounts. In 1955, new decimal coins were introduced. These coins were called cents. Each cent was worth half a British penny.

The West Indies Federation and Beyond

In 1958, the West Indies Federation was formed, and the BWI$ became its currency. Even though Jamaica was part of the Federation, it mostly kept its own Jamaican pound. However, the BWI$ was also legal to use in Jamaica from 1954.

In 1964, Jamaica stopped using the BWI$. Also, Trinidad and Tobago left the currency union and started its own Trinidad and Tobago dollar. This made the BWI$ less popular in the region.

In 1965, the British West Indies dollar was replaced by the East Caribbean dollar. The BCCB was replaced by the Eastern Caribbean Currency Authority (ECCA). British Guiana left the currency union the next year. Barbados also left in 1972.

The Eastern Caribbean Central Bank now issues the EC$. It is based in Basseterre, Saint Kitts and Nevis. The exchange rate of 4.80 EC dollars to 1 British pound continued until 1976.

Coins of the BWI Dollar

Coins for the British West Indies dollar were first made in 1955. They came in values of 1⁄2, 1, 2, 5, 10, 25, and 50 cents. These coins were called "British Caribbean Territories, Eastern Group".

The 1⁄2, 1, and 2 cent coins were made of bronze. They were the same size and weight as British farthing, halfpenny, and penny coins. The 5 cent coin was brass. The 10, 25, and 50 cent coins were made of cupro-nickel.

These coins were used until 1981. The 1⁄2 cent coin was stopped in 1965. All the coins had a picture of Queen Elizabeth II on the front.

Banknotes of the BWI Dollar

Early Banknotes

The very first banknotes in the British West Indies were printed by private banks. These included the Colonial Bank and Barclays Bank. They printed notes in places like Antigua, Barbados, and Trinidad and Tobago.

These early banknotes were interesting because they showed amounts in two ways. They showed the value in both British pounds and Spanish dollars. One dollar was equal to 4 shillings and 2 pence.

Some governments, like Barbados and British Guiana, also printed their own money.

Official BWI Dollar Banknotes

In 1950, the first official banknotes for all the participating colonies were issued. They were called "British Caribbean Territories, Eastern Group". These notes came in values of 1, 2, 5, 10, 20, and 100 dollars. They replaced all the older banknotes in 1951.

The notes from 1950-1951 had a picture of King George VI. Notes printed between 1953 and 1964 showed Queen Elizabeth II.

In March 1965, the East Caribbean Currency Authority (ECCA) was created. This happened after British Guiana and Trinidad and Tobago left the British Caribbean Currency Board to start their own central banks.

See also

• Currencies of the British West Indies
• West Indian pound