In 1882, the first dollar-based currency was issued in Barbados in the form of private bank notes. These notes were used along with British pounds as the nation's currencies. In 1935, the British West Indies dollar was issued at par with the Barbados dollars issued by private banks. Barbados dollars also began to be issued by the government between 1938 and 1949. The East Caribbean dollar replace the British West Indies dollar in 1965.The current Barbadian dollar was created in 1972 after the establishment of the Central Bank of Barbados. BBD replaced the East Caribbean dollar at par, and since 1975 it has been pegged with the U.S. dollar (USD) at a rate of 2 BBD to 1 USD.