Currencies by Country:

What is the Cayman dollar (KYD)? (AMD)?

Credit Ratings & Outlook

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.

GDP

In 1996 the total GDP was $1,012,444,041 in US Dollars, while the per capita GDP was $29,693. It fell by 0.00% over the previous year.

Unemployment

The latest unemployment rate for 2008 is 4.00%.

Political Structure

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Currency Details

The Cayman dollar, often denoted by KYD, is the official currency of the Cayman Islands. The KYD first began circulating in May 1972, one year after the Cayman Islands Currency Board was established. Today, however, the currency is issued by the Cayman Islands Monetary Authority (CIMA), which replaced the Currency Board in January 1997. The Cayman dollar is pegged to the United States Dollar (USD) at an exchange rate of 1 to 1.227. However, in many retail stores throughout the island, the KYD is typically traded at 1.20 USD.

As of September 1, 2005, the 500-dram banknote will no longer be accepted.

Sovereign Ratings for Cayman Island

Moody’s Rating
Aa3
S&P Rating
N/A

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.

What does it look like?

Political Structure

The Cayman Islands territory is a British crown colony with three branches of government. The executive branch consists of the monarch, governor, chief secretary, and the cabinet, which is composed of an executive council. The monarch is hereditary and appoints the governor who in turn appoints the chief secretary. An important attribute of the executive branch is that no elections take place. The Legislative Assembly elects the executive council. The legislative branch is a unicameral Legislative Assembly with 18 seats. Fifteen of the members are elected by popular vote and three are appointed by the executive council. Each one of the members serves four years in the assembly. The judicial branch consists of a Summary Court, Grand Court, and the Cayman Islands Court of Appeal.

  • Prominent Figures Head of State: Queen Elizabeth II, since February 6, 1952
  • Governor: Bruce Dinwiddy, since May 29, 2002
  • Chief Secretary: McKeeva W. Bush, since December 2001
  • Central Bank: Cayman Islands Monetary Authority (CIMA)
  • Chairman of Central Bank: Timothy Ridley, since July 2002

Unique Characteristics

From the discovery of the Cayman Islands, marine turtles were found to be in abundance around the islands, both in the water and on the beaches. Quickly, people began realizing the economic potential the abundance of the turtles had, and started what became a booming turtle industry for hundreds of years. When the turtle stock started diminishing around the late 1700s and early 1800s, settlers began to look towards neighboring islands in order to continue their turtle trade. It maintained its position as the leading industry among the islands before being surpassed by tourism in the late 1960s. The vast socioeconomic importance that marine turtles had on the Cayman Islands is reflected in the national emblem, flag, and currency. To this day, remnants of the turtle population can still be found on the Cayman Islands and are visited daily by tourists.

Key Economic Factors

Tourism is one of the Cayman Islands’ most important sectors, as it accounts for about 70% of annual GDP and about 75% of all foreign currency earnings. There are over 2 million tourists per year coming to the islands by both air and cruise ships, with the majority coming from the United States. After the September 11, 2001 terrorist attacks, the tourism industry dipped, as the majority of tourists come from North America. However, in the next few years, when people became more at ease to travel, the tourism industry rebounded back up. The Cayman Islands are well known for its beaches, resorts, and many dive destinations.

Financial Services:

The Cayman Islands is a booming financial center because it does not engage in any direct taxation by the British government. This allows the islands to act as an international offshore banking hub. There are more than 40,000 companies registered in the Cayman Islands, including banking, insurance, trust management, and mutual finds. The government creates revenue by indirect taxation, such as import duties. The government also charges base licensing fees to financial institutions running within the island and a small fee to tourists as they enter the island.

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