The currency of Jamaica is the Dollar, or more specifically the Jamaican Dollar which is abbreviated to JMD. The currency is issued as a mixture of coins and notes with the notes coming in J$1,000, 500, 100 and 50, and the coins in J$20, 10, 5 and 1, and 25, 10 and 1 Cents. There was controversy in the autumn of 2009 when the Bank of Jamaica introduced a new denomination, the J$5,000 note. Those against the move (and their number included some high profile figures, such as the Jamaican Finance Minister,) claimed that such a large denomination would give the impression that the Jamaican currency had been seriously devalued.

The Jamaican Dollar was established in 1968 in order to decimalize the currency system. British coins had become the only acceptable form of currency in Jamaica in 1839 but had been used, along with some Spanish coins, prior to this. Banknotes were not used as part of this currency until the turn of the century. The number of denominations fluctuated with new ones being introduced and withdrawn from time to time and in 1960 the Bank of Jamaica started to produce its own banknotes and coins which were in circulation until 1968. The new decimal currency was also used in the Cayman Islands (itself a former Jamaican dependency) until that nation established its own independent currency in 1972.

In the 1990s, several of the denominations that existed as banknotes were replaced with coins and the range of coin designs is quite varied, including a twelve-sided and a ten-sided coin.

Strictly speaking, the unit of currency known as a “dollar” derives from the Spanish ‘pieces of eight’ but the Jamaican Dollar is actually a misnomer because it is based instead on the half Pound. Other countries that used the half Pound system are Australia, New Zealand and South Africa. These currencies were given the name “Dollar” because the value of each one was closer to that of the American Dollar than the British Pound Sterling.

Officially, the Jamaican Dollar is the only legal tender for use in Jamaica, but in practice, the American Dollar is widely used. For this reason it is important when paying for goods or services to be certain which Dollars are being quoted when the price is given. The Jamaican Dollar is fully convertible and tourists should encounter no difficulties in finding places to exchange their money. International credit and ATM cards can be used across the island. Exchanging money on the black market is not advised as it can carry heavy penalties.