The Bermuda dollar, often denoted by BMD, is the official currency of Bermuda. Though pegged to the US Dollar at a 1:1 rate, the Bermuda dollar is still considered a domestic currency. Bermuda's currency is neither traded nor used outside of Bermuda. Circulating in Bermuda since 1970, the BMD was preceded by the British pound. Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
Political Structure
Bermuda is a parliamentary British overseas territory with an internal self-government. This government consists of three branches: the executive, legislative, and judicial. The executive branch is composed of a monarch, governor, premier, deputy premier and a cabinet. There are no elections in Bermuda. The monarch is hereditary and appoints the governor. The leader of the majority party or coalition usually becomes the premier by getting appointed by the governor. The premier then nominates the cabinet members. The legislative branch is a bicameral Parliament, which consists of the Senate and the House of Assembly. The Senate is composed of 11 members who are appointed by the governor, premier and the opposition. The House of Assembly has 36 members who are elected by popular vote and serve five-year terms. The judicial branch consists of a Supreme Court, Court of Appeal, and Magistrate Courts.
Prominent Figures: Queen: Elizabeth II, since February 6, 1952
Governor: Sir John Vereker, since April 2002
Premier: Alex Scott, since July 24, 2003
Deputy Premier: Ewart Brown, since July 24, 2003
Chairman of Bermuda Monetary Authority: Cheryl-Ann Lister
Key Economic Factors
Tourism and International Business: These two industries are Bermuda's most important sources of revenue. The bulk (about 80%) of the tourists come from North America, over about 400,000 annually.
The September 11th , 2001 terrorist attacks had both positive and negative effects on Bermuda. A negative consequence was that tourism declined because American tourists were more hesitant to travel. However, tourism rebounded after 2002. On the positive side, many new reinsurance companies appeared on the island, helping the already booming international business sector. There has been continued growth of the international business sector over tourism, which is said to be a stabilizing factor for the economy of Bermuda.
