1 Cent – Cayman Islands

In 1999, the currency situation in the Cayman Islands was characterized by stability and a firm commitment to its long-standing peg to the United States dollar. Since 1972, the Cayman Islands Dollar (KYD) had been fixed at a rate of CI$1.00 = US$1.20, a unique valuation that made it one of the few currencies in the world worth more than the US dollar. This fixed exchange rate regime, managed by the Cayman Islands Monetary Authority (CIMA), which was established just four years prior in 1997, provided a predictable financial environment crucial for the territory's dominant offshore banking and tourism sectors.

The economy was highly dollarized, with US dollars circulating widely and being accepted interchangeably for most transactions, especially in tourism and high-value commerce. However, the local currency remained essential for government transactions and day-to-day local business. The stability of the peg was underpinned by substantial foreign exchange reserves, which were bolstered by the territory's status as a leading global financial centre. There were no significant currency crises or devaluation pressures in 1999, as the territory's prudent fiscal management and thriving financial services industry ensured ample reserve coverage.

Overall, the currency framework in 1999 was a cornerstone of the Cayman Islands' economic success, fostering confidence among international investors and financial institutions. The system faced no serious challenges that year, operating smoothly as a key component of the jurisdiction's appeal. This stable monetary foundation allowed the government and CIMA to focus on enhancing regulatory frameworks for the financial sector, rather than managing currency volatility.