Since switching from the Bermudian pound in 1970, Bermuda's currency has been the Bermudian dollar, which is pegged to the US dollar similar to Hong Kong. US notes and coins are used interchangeably with Bermudian notes and coins within the islands for most practical purposes; however, banks levy an exchange rate fee for the purchase of US dollars with Bermudian dollars. Bermudian notes carry the image of HM Queen Elizabeth II. The Bermuda Monetary Authority is the issuing authority for all banknotes and coins, as well as being responsible for the regulation or lack thereof of financial institutions. There is a permanent exhibition of Bermuda notes and coins at the Royal Naval Dockyard Museum.
According to the Bermuda Government's Economic Statistics Division, Bermuda's GDP was $5.85 billion in 2007, or $91,477 per-capita, giving Bermuda the highest GDP per capita in the world.
The affordability of housing has become a prominent issue during Bermuda's business peak in 2005 but has softened with the decline of Bermuda's real estate prices. The CIA World Factbook lists the average cost of a house in June 2003 as $976,000, while real estate agencies have claimed that this figure had risen to between $1.6 million and $1.845 million by 2007, though such high figures have been disputed.
Bermuda is an offshore financial centre, which results from its low legal regulation and direct taxation on personal or corporate income. The local tax system depends upon import duties, payroll taxes and consumption taxes. The legal system is derived from that of the United Kingdom, with recourse to English courts of final appeal. However, foreign private individuals cannot easily open bank accounts or subscribe to mobile phone or internet service.
As the offshore domicile of many foreign companies primarily insurance, reinsurance, investment funds and special purpose vehicles (SPV). Government employment, off-shore business and tourism are the largest sectors
