| Cayman
Coin History
After careful
deliberation by a committee, which was formed to consider the
introduction of Cayman currency to the Islands, it was recommended
that a local currency would be to the economic and political advantage
of the Cayman Islands. This recommendation was accepted by Her
Majesty's Government, in view of the rapid progress of the Cayman
economy.
There was no opposition from the Bank of Jamaica, who indeed gave
the Board valuable assistance throughout the transition period.
Formal United Kingdom approval for the issue of a new and independent
currency in the Cayman Islands was given in September 1970 and
the Currency Committee was charged with the responsibility of
introducing the currency and proposing the appropriate legislation.
The Cayman Islands Currency Board was created by the Currency
Law of 1971 for the purpose of administering the physical issue
and redemption of currency. The Law of 1971 allowed for an expansion
in the Board's function over a period, which involved, inter alai,
the development of an active investment policy, including the
management of local assets, and perhaps ultimately the opening
of accounts by the Board for the local commercial banks to establish
a clearing system.
On May 1st 1972 the Cayman Islands Currency Board commenced operations
with the new issue. By the end of June 1972 J$710,895 (Jamaican
dollars) notes and coins had been redeemed. The method for withdrawal
was very simple: all Jamaican currency held by and returned to
the banks was paid over, at frequent intervals, to Barclays Bank
International Limited, as Agent of the Board in exchange for an
equivalent amount of Cayman currency. The Bank of Jamaica was
informed of the amounts so withdrawn and the Currency Board's
account with the Crown Agents in London was credited with the
sterling counterpart on receipt of sterling value. It was agreed
that the Bank of Jamaica would redeem at par, and the sterling
counterpart of the currency issue received in London as exchange
for the Jamaican currency formed the backing for the new currency.
In order to ensure an adequate supply of currency during the changeover
period, Jamaican notes and coins remained legal tender until 31st
August 1972. (Jamaican dollars)
In mid-1972, the Cayman Islands Government signed an Agreement
with World Coin Corporation for the issue of various sets of proof
coins. By November 1972, two programs were arranged and the coins
were issued. The first program was the Eight Coin Proof set and
the second program marked the silver wedding anniversary of Her
Majesty the Queen. The issuing of numismatic coin programs still
continue today.
By the end of 1972 the currency in circulation amounted to CI$
1,091,975 indicating the success of the newly introduced currency.
On 1st April 1974, the 1971 Currency Law was replaced by the Currency
Law of 1974. This legislation enabled the Board to declare the
parity of the Cayman dollar in terms of the US dollar, resulting
in the CI $1 = US $1.2 relationship that exists today. A further
revision to the Law was carried out in 1983 when the Currency
Law of 1974 was repealed and replaced by the Currency Law Revised.
This law has since been replaced by section 18 of the Monetary
Authority Law.
The Currency Committee which was formed prior to 1971 to consider
the introduction of Cayman currency decided upon a decimal system
of currency consisting of four notes of $1, $5, $10, and $25,
and four ordinary circulating coins of the following denominations
- 1 cent, 5 cents, 10 cents and 25 cents. In 1981 the Board introduced
the new denominational values of $100 and $40 notes followed by
the issue of the $50 note in 1985. The contracts for printing
the notes and minting the coins continue to be awarded to Thomas
De La Rue and Company Limited and The British Royal Mint, respectively.
On the January 1st 1997, the Cayman Islands Monetary Authority
was established as a body corporate under The Monetary Authority
Law. This Law replaced the Cayman Islands Currency Law. Under
this Law, the former responsibilities, duties and activities of
the Financial Services Supervision Department and the Cayman Islands
Currency Board now fall to the Authority, which was created from
the merger of these two bodies.\
Today, the Cayman Islands Monetary Authority is the organization
responsible for the issue and redemption of Cayman Islands Currency.
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