You're heading to the tropics. Sunscreen? Packed. Passport? In the bag. But then you look at your wallet and realize you have no idea how the money works once you land. Thinking there's just one "Caribbean dollar" is the first mistake most travelers make. Honestly, it's a mess of different currencies, fixed pegs, and floating rates that can leave you paying way more than you should if you aren't careful.
Basically, the Caribbean is a patchwork of monetary systems. Some islands use the US dollar as their actual currency. Others have their own dollars that are permanently "locked" to the USD. Then you've got the wild cards—floating currencies that bounce around like a buoy in a hurricane. If you're trying to figure out the usd to caribbean dollar situation, you have to know exactly which island you're stepping onto.
The Eastern Caribbean Dollar: One Currency, Eight Islands
The most common "Caribbean dollar" is the Eastern Caribbean Dollar (XCD). You'll find this used in Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.
Since 1976, this currency has been pegged to the US dollar at a fixed rate of $2.70 XCD to $1 USD.
It’s incredibly stable. You don't have to check the news every morning to see if your breakfast will cost more today than it did yesterday. However, there is a catch. While the official rate is 2.70, most local shops and restaurants will give you a "street rate" of 2.60 or 2.50 if you pay in US cash. They aren't necessarily trying to scam you; it's just the convenience fee for them having to take that cash to the bank themselves.
If you want the full 2.70 value, use a credit card with no foreign transaction fees or withdraw XCD directly from a local ATM.
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Islands Where the Rate Never Changes
There are several other versions of the Caribbean dollar that keep things simple by sticking to a fixed exchange rate. The Bahamian Dollar (BSD), for instance, is kept at a 1:1 ratio with the USD. In Nassau or the Out Islands, you can literally hand over a US five-dollar bill and get a Bahamian five-dollar bill back as change. They are interchangeable.
Barbados is a bit different. The Barbadian Dollar (BBD) is pegged at 2:1. One US dollar always equals two Barbadian dollars. It’s been that way since 1975. It makes mental math easy, but you still need to be careful when you see a price tag. A $50 steak might look expensive until you realize it’s $25 USD.
Belize follows the same 2:1 rule. It’s helpful, but locals will often quote prices in "Belize dollars" to tourists, so always clarify which dollar they mean before you tap your card.
- Aruban Florin (AWG): Fixed at 1.79 to 1 USD.
- Netherlands Antillean Guilder (ANG): Also fixed at 1.79 to 1 USD (used in Curaçao and Sint Maarten).
- Cayman Islands Dollar (KYD): This is the "expensive" one. 1 KYD is worth about $1.20 USD. It’s one of the few currencies in the world stronger than the US dollar.
The Floating Currencies: Where it Gets Tricky
Jamaica and Trinidad and Tobago don't play the pegging game. Their currencies float. This means the usd to caribbean dollar rate for these specific nations changes every single day based on the global market.
In Jamaica (JMD), the rate has historically trended toward depreciation. As of early 2026, you're looking at somewhere in the neighborhood of 150 to 160 Jamaican dollars for a single US dollar. Prices in Jamaica can look astronomical—a simple lunch might be 3,000 JMD.
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Trinidad and Tobago (TTD) usually hovers around 6.7 to 6.8 TTD per 1 USD. Unlike the Eastern Caribbean islands, these countries really prefer you use their local currency. While many tourist spots in Montego Bay or Port of Spain will take your greenbacks, the exchange rate they give you at the register will be terrible. You’re much better off hitting an ATM at the airport or in town.
Why You Shouldn't Just Use US Dollars Everywhere
It’s tempting. "They take US dollars" is a common refrain in travel forums. And yeah, they usually do. But using USD for every transaction is a fast way to lose 10% to 15% of your vacation budget to bad exchange rates.
When a merchant accepts USD in a country with its own currency, they are doing you a service. They set the price to cover their bank's conversion fees and then some. Plus, you’ll almost always get your change back in the local currency anyway. Now you have a pocket full of coins you can't spend back home and a lighter wallet because of the bad rate you just accepted.
The smartest move? Use a card for anything over $20. For the small stuff—street food, tips, local buses—get a small amount of the local currency from an ATM.
Actionable Steps for Your Trip
To get the most out of your money, follow these specific steps before you board your flight:
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Check your cards for "Foreign Transaction Fees." If your bank charges 3% every time you swipe abroad, stop using it. Plenty of travel cards (like those from Chase, Amex, or Capital One) have zero fees.
Download a currency converter app. Use one that works offline, like XE or Oanda. When you see a price in XCD or JMD, you can double-check the real-time math instantly.
Notify your bank. Nothing ruins a trip like a frozen debit card because you tried to buy a rum punch in Grenada. Use your bank's app to set a travel notice.
Avoid the airport exchange kiosks. Those "No Commission" signs are a lie. They make their money by giving you a horrible exchange rate. Use a bank-affiliated ATM instead; the fees are usually lower and the rate is much closer to the official "mid-market" price.
Carry some $1 and $5 USD bills. Even if you plan to use local currency, having small US bills is great for tipping the baggage handler or the taxi driver the moment you land, before you've had a chance to find an ATM.
Understanding the usd to caribbean dollar landscape isn't just about math; it's about not being the "clueless tourist" who overpays for everything. Stick to local currency for cash transactions and use your credit card for the rest. You'll save enough for an extra round of drinks at the beach bar.