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KYD (Cayman Islands Dollar)



Definition

KYD, or Cayman Islands Dollar, is the official currency of the Cayman Islands, a British Overseas Territory located in the Caribbean. It is symbolized as CI$ to differentiate it from other dollar-dominated currencies. The exchange value fluctuates but it’s usually valued higher than the US dollar.

Phonetic

The phonetic pronunciation of the keyword KYD (Cayman Islands Dollar) is: “kay-why-dee”

Key Takeaways

  1. The Cayman Islands Dollar (KYD) is the official currency of the Cayman Islands, a British Overseas Territory located in the Caribbean.
  2. The currency code for Cayman Islands Dollars is KYD and the currency symbol is $, although sometimes the designation ‘CI$’ is used to distinguish it from other dollar-denominated currencies.
  3. Cent coins are available in denominations of 1, 5, 10 and 25, with banknotes available in $1, $5, $10, $25, $50, and $100 denominations.

Importance

The term KYD, which stands for the Cayman Islands Dollar, is important in the realm of business and finance as it represents the official currency of the Cayman Islands, a major offshore financial center. The value of the KYD significantly impacts financial transactions and economic activities within and related to the Cayman Islands. Moreover, the strength of the KYD can influence foreign investment and economic stability in this region. Hence, understanding the exchange rate and performance of the KYD is critical for businesses, investors, and financial institutions operating in or dealing with the Cayman Islands.

Explanation

The Cayman Islands Dollar (KYD) serves as the official currency for the Cayman Islands, a recognized Caribbean financial hub. Its purpose is to facilitate all forms of financial transactions within this jurisdiction. The KYD is issued by the Cayman Islands Monetary Authority, and it underpins everyday transactions, ranging from purchasing goods and services by locals and tourists, to financial operations carried out by businesses and banks operating in the Cayman Islands. Therefore, the stability of the KYD is crucial as it impacts the well-being of the economy. Moreover, owing to the Cayman Islands’ reputation as a prominent offshore financial center, the KYD also plays a significant role in international finance. Global firms doing business or managing assets in the Cayman Islands often have to deal in KYD, particularly if they’re dealing with local businesses or authorities. Therefore, the importance and usage of the KYD extends beyond the domestic economy of the Cayman Islands. It is intrinsically linked to the international investment and business activities that take place within the islands’ financial services sector.

Examples

Example 1: International Investments: An investor based in the United States might be interested in expanding their portfolio by investing in properties located in the Cayman Islands. Their investments would need to be converted into KYD (Cayman Islands Dollar), the local currency in order to complete the transaction. Example 2: Tourism: A family from France decides to vacation in the Cayman Islands. Prior to their travels, they would have to convert their Euros into KYD (Cayman Islands Dollar) to use for expenses during their stay, such as accommodation, meals, and local transportation. Example 3: Import and Export Trade: A Japanese electronics firm exports its products to the Cayman Islands. It would receive payment in KYD (Cayman Islands Dollar). This company would need to keep an eye on the exchange rate between KYD and the Yen to ensure profitability in their transactions.

Frequently Asked Questions(FAQ)

What is KYD?
KYD is the official currency of the Cayman Islands and the abbreviation stands for Cayman Islands Dollar.
Where is KYD used?
The KYD is used in the Cayman Islands, a British overseas territory located in the Caribbean.
What is the symbol of the KYD?
The symbol for the KYD is $ but it sometimes may be represented as CI$ to differentiate it from other dollar-denominated currencies.
What are the denominations of KYD?
The Cayman Islands Dollar comes in coin denominations of 1¢, 5¢, 10¢, 25¢ and $1, and banknote denominations of $1, $5, $10, $25, $50, and $100.
Who issues and controls the KYD?
The Cayman Islands Monetary Authority (CIMA) issues and controls the KYD.
What is the value of the KYD in relation to the USD?
As a currency that is quite strong, 1 KYD is typically valued at around 1.2 USD, but this rate is subject to fluctuation and it is advised to check the current exchange rate.
Can I use US dollars in the Cayman Islands instead of KYD?
US dollars are widely accepted in the Cayman Islands, although change may be given in KYD.
Is it possible to use credit cards instead of KYD while in the Cayman Islands?
Yes, many businesses in the Cayman Islands accept major international credit cards. However, small vendors, especially in more remote areas, might only accept cash in KYD.
Is KYD pegged to any other currency?
Yes, the Cayman Islands dollar (KYD) has been pegged to the United States dollar (USD) at a rate of 1 USD = 0.82 KYD.
What is the best way to exchange currency to KYD?
You can exchange currency to KYD at local banks, currency exchange offices, and possibly at your hotel’s front desk. ATMs are also available across the islands.

Related Finance Terms

  • Foreign Exchange (Forex)
  • Currency Pair
  • Offshore Banking
  • Exchange Rate
  • International Trade

Sources for More Information


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