TTD (Trinidad and Tobago Dollar): What it is, How it Works

What Is the TTD (Trinidad and Tobago Dollar)?

The Trinidad and Tobago dollar (TTD) is the official currency of Trinidad and Tobago. Like the U.S. dollar (USD), it is divided into 100 cents.

TTD users often use the prefix "TT$" to differentiate it from other dollar currencies, such as those of the United States, Canada, and Australia.

Key Takeaways

• The Trinidad and Tobago dollar is the national currency of Trinidad and Tobago.
• Trinidad and Tobago has had multiple currencies throughout its history before adopting the TTD in 1964.
• Trinidad and Tobago is a major oil and natural gas exporter, with its energy sector accounting for roughly 40% of GDP.

Understanding the Trinidad and Tobago Dollar

Trinidad was a Spanish colony, and Columbus visited the island in 1498. Tobago was ruled by several European nations, including Spain, Britain, France, and the Netherlands. Both islands became British colonies in 1802 and gained independence in 1962. They then formed the Republic of Trinidad and Tobago in 1976.

The first currency used on the islands were Spanish "pieces of eight" coins introduced in the 1500s after Spain colonized the islands.

During the 1800s, various currencies were used, including those from Britain, Mexico, and Columbia, as private banks administered the currency. British currency gained popularity after the severe devaluation of silver-backed currencies like the Spanish pieces of eight in the late 1870s.

After World War II, Trinidad and Tobago briefly used a shared Caribbean currency. However, in 1964, they introduced the modern TTD, which is still in use.

In the past decade, Trinidad and Tobago’s economic growth has been stagnant, with an average GDP growth rate of 0.01% between 2009 and 2019. The country’s economy relies heavily on the energy sector, which contributes around 40% of the national GDP through petroleum and liquefied natural gas (LNG) exports.

TTD on Forex Markets

The Trinidad and Tobago dollar is not pegged to other currencies and floats freely. It has six banknotes in circulation: $1, $5, $10, $20, $50, and $100.

Over the past decade, the value of the TTD has slightly depreciated against the USD, from approximately 6.15 TTD per USD in 2009 to around 6.8 TTD per USD in 2020. The inflation rate has averaged around 6% in the past 10 years, but recent years have shown lower inflation.