History of Money in Trinidad and Tobago

Trinidad and Tobago’s currency system has historically been characterised by a multitude of currencies on account of the occupation of the islands by major colonial powers of predominately French, Spanish and British origin. Upon occupation of Trinidad in 1797, the British encountered a rudimentary system devoid of banks and bank notes. This was also true of Tobago’s monetary arrangements at this time. The existing money, limited in supply, consisted of Spanish, Mexican, Portuguese and French currencies. The diversity of the coins’ origin was matched by their varying characteristics in terms of weight, size, metal composition and authenticity.

With the advent of the Colonial Bank established under the Colonial Banking Regulations of 1834, attempts were made to rationalise the currency situation. One major function of the Bank was the issuance of notes denominated in one pound sterling or of greater value. These dollars co-circulated with the existing coins in the system. Other banks resident in Trinidad during the nineteenth century also issued notes which were backed by a reserve in specie. At the beginning of the twentieth century, under the Currency Notes Ordinance, a Board of Commissioners of Currency was established, and legislation was passed in 1904 to allow the issue of “government money.” These notes could be issued in denominations of $1, $2 and $1,000 in exchange for gold or silver coins previously issued. Nonetheless, the bank notes of the Colonial Bank remained the predominant currency since they had gained international acceptance.