The Bahamian dollar is fixed to the U.S. dollar on a one-to-one exchange ratio. As such, the Bahamian currency is dependent on the strength or weakness of the U.S. dollar.
There are over 400 banks in the Bahamas, but only 9 are regular, full-service commercial institutions. The others specialize in international banking and investment. In 1998, the government established the Bahamas Financial Services Board to promote the nation as a major financial center and to coordinate financial services. In 2000 the Bahamas International Securities Exchange was launched as the nation's first stock market.