So, you're looking at photos of Horseshoe Bay and planning your flight, but then that classic traveler anxiety kicks in: do I need to run to the bank for some obscure local money? It's a fair question. When it comes to what currency is used in bermuda, the answer is actually two-fold, and honestly, it’s one of the easiest situations you’ll ever deal with on a vacation.
Bermuda has its own money, the Bermudian dollar (BMD). But here’s the kicker—it is pegged 1:1 with the U.S. dollar. This isn't just a rough estimate or a "usually close" situation. They are literally the same value. Because of this, U.S. dollars (USD) are accepted everywhere on the island. You can walk into a grocery store in Hamilton or a tiny beach shack in St. George’s, hand over a twenty-dollar bill with Andrew Jackson’s face on it, and nobody will blink.
You’ve basically got a two-currency system running simultaneously.
The Weird Reality of Bermuda’s Money
If you’re coming from the U.S., you don’t actually have to exchange your money. At all. You can land at L.F. Wade International Airport with a pocket full of USD and spend it until the day you leave.
However, there is a catch you should know about. Even if you pay in U.S. cash, your change will almost certainly be in Bermudian dollars. It’s kinda like a mandatory souvenir program. The Bermudian coins are actually quite beautiful—look for the "hog penny" or the various local birds and flowers on the back.
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Why the 1:1 Peg Matters
The Bermuda Monetary Authority has kept this 1:1 peg since 1972. Before that, things were a bit more British. Now, it’s all about convenience for the massive influx of American tourists and the deep business ties with the States.
- The Exchange Rate: $1.00 USD = $1.00 BMD.
- Legal Status: Both are used interchangeably.
- The "Exit" Problem: Bermudian dollars are essentially "monopoly money" once you leave the island. No bank in New York, London, or Toronto is going to trade them back for you.
Seriously, if you have a stack of Bermudian notes left on your last day, spend them at the airport duty-free or use them to pay your final hotel bill. Once you hop on that plane, those colorful notes are just pretty pieces of paper.
Using Credit Cards and ATMs in 2026
We aren't living in the dark ages. You don’t need to carry a giant roll of cash like a 1950s mobster.
Visa and Mastercard are accepted almost everywhere—from high-end boutiques on Front Street to the ferries. American Express is also widely taken, though you might find a stray small cafe that prefers the other two.
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A Quick Word on ATMs
Bermuda has plenty of ATMs, primarily operated by local banks like Butterfield, HSBC Bermuda, and Clarien. Most of these machines will spit out Bermudian dollars. If you specifically need U.S. cash for some reason (maybe you're heading back to the States and don't want the local "change" problem), some HSBC branches have dedicated U.S. dollar ATMs.
Be careful with the fees. Most local ATMs will charge a small fee for foreign cards, and your bank back home will probably hit you with a "foreign transaction fee" unless you have a travel-specific card. Honestly, check your bank's policy before you go. It’s better than seeing twenty separate $5 fees on your statement later.
What About the British Pound?
Here is where it gets slightly confusing for some. Bermuda is a British Overseas Territory. You might see a portrait of King Charles III on the new 2024 and 2025 banknotes (replacing the late Queen Elizabeth II).
But don't be fooled.
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Bermuda does not use the British Pound Sterling (£). If you show up with a pocket full of Pounds, you’ll have to head to a local bank to exchange them. Shops will not take them. It's a bit of a quirk of history—the island moved away from the Pound in the early 70s to align more closely with the North American economy.
Practical Tips for Your Wallet
Since I've spent enough time navigating the "change" issue, here is how I actually handle money in Bermuda:
- Bring USD Small Bills: Bring a bunch of $1, $5, and $10 U.S. bills. Since you'll get change in Bermudian money, using smaller U.S. bills helps you avoid ending up with a wallet full of local currency you can't use elsewhere.
- Use Your Card for Big Stuff: Put the hotel, the moped rental, and the fancy dinners on your credit card. It’s safer and easier.
- Tipping: Tipping is standard. Many restaurants automatically add a 15% or 17% service charge to the bill. Check the receipt before you add extra. If it's already there, you're good. If not, tip like you would in the U.S.
- The 1.25% Tax: If you try to go into a local bank to buy U.S. dollars using Bermudian dollars, there is actually a "Foreign Currency Purchase Tax." This is another reason to avoid having too much local cash left over.
The "Hogge Money" History
If you’re a history nerd, ask a local about "Hogge Money." Back in the 1600s, Bermuda’s first coins featured a wild hog. Why? Because when the first settlers arrived, the island was overrun with pigs left behind by Spanish explorers.
You can still see a pig on the modern one-cent coin. It’s a nice nod to the fact that while the currency looks like the U.S. dollar in value, it has a soul that is purely Bermudian.
Actionable Next Steps
If you are leaving for Bermuda soon, don't overthink this. Do not go to your bank to order Bermudian dollars. You'll just lose money on the exchange rate spread. Instead, just make sure you have a few hundred dollars in clean, crisp U.S. bills and a credit card with no foreign transaction fees.
When you get your first Bermudian $5 note—which, by the way, won "Bank Note of the Year" recently because it’s a stunning vertical design with a blue marlin—keep it as a souvenir. Just don't try to buy a coffee with it in Atlanta on your way home.