Bahamas Philately: 1966 – 1965 Definitive Series (Decimal Currency Overprint)

The Bahamas converted to a decimal system in 1966, following passage of the Currency Act of 1965. Both pound and dollar notes remained interchangeable for six months. On conversion day, £3.4 million in Bahamian currency was in circulation, which was 110 percent backed with British government securities.

The dollar replaced the pound at a rate of 1 dollar = 7 shillings. This rate allowed the establishment of parity with the US dollar, due to the sterling/dollar rate then being fixed at £1 = $2.80. To aid in decimalization, three-dollar bills and fifteen-cent coins were created, as three dollars was roughly equivalent to one pound, and fifteen cents to a shilling.

At the time of transition coins were introduced in denominations of 1, 5, 10, 15, 25, 50 cents, 1 and 2 dollars. The 1 cent was struck in nickel-brass, the 5, 10, and 15 cent in copper-nickel, the 25 cent in nickel, and the 50 cent and 1 dollar in silver. The 10 cent was scallop shaped, whilst the 15 cent was square.