What Is JMD (Jamaican Dollar)?

The JMD, or Jamaican Dollar, serves as the official currency of Jamaica, divided into 100 cents. Recognized by the currency symbol J$ or JA$, the Jamaican dollar plays a crucial role in the economic landscape of the island nation.

Key Takeaways

• The JMD is Jamaica’s official currency, subdivided into 100 cents.
• In the foreign exchange market, the USD/JMD exchange rate is notable, currently standing at 1 USD = 150.27 JMD as of April 2021.
• Jamaican Dollar was the first dollar to be linked to half-pound sterling instead of the Spanish or U.S. dollars.

Understanding the JMD (Jamaican Dollar)

Jamaican Dollar banknotes, available in denominations of J$50, J$100, J$500, J$1,000, and J$5,000, showcase unique features tailored for the visually impaired. Each note features prominent Jamaican figures, such as national heroes or former prime ministers, on the obverse side, while the reverse side highlights Jamaican landmarks and scenic locales.

While major tourist spots in Jamaica accept U.S. dollars, businesses outside these areas may only transact in JMD. Customers using foreign currencies might encounter varying exchange rates set by individual merchants. Notably, the Cayman Islands previously employed the Jamaican Dollar in their economy.

The issuance of Jamaican coins and banknotes is under the jurisdiction of the Bank of Jamaica, with De La Rue Currency Ltd. in England handling the printing since 1920. Jamaica adopted a decimal currency system in 1968, with the JMD pioneering its link to half-pound sterling instead of the traditional Spanish or U.S. dollar.

The Jamaican Pound was replaced by the JMD in 1969, with coins gradually replacing some paper bills over time. The circulation of J$1,000 notes commenced in 2000, followed by the introduction of J$5,000 notes in 2009. Regulations by the Bank of Jamaica dictate the coin limits for transactions. In 2019, Jamaica reported an annual inflation rate of 3.9% and a GDP growth of 0.7%.

History of the JMD (Jamaican Dollar)

With a rich history, Jamaica has utilized varied coins and banknotes from diverse origins. Initially, the absence of a formal monetary system among indigenous communities led to a reliance on barter. Upon Spanish colonization in the 16th century, Spanish currency gained popularity. Subsequently, during its time as a British colony, Jamaica predominantly adopted British currency, distinguished by unique pound sterling coins.