KYD stands for Cayman Islands dollar.It was introduced in 1972 when Jamaican currency ceased to be legal tender. Nowadays on the islands, the US dollar is accepted as legal currency by hotels, restaurants, and retail establishments at the rate of 1 US Dollar for every 80 Cayman cents. The Law of 1971 allowed for an expansion in the Board's function over a period, which involved, the development of an active investment policy, including the management of local assets, and perhaps ultimately the opening of accounts by the Board for the local commercial banks to establish a clearing system.