The Caribbean Dollar is a term that can refer to various currencies used in Caribbean nations. Each country may have its own version of the dollar, such as the East Caribbean Dollar (XCD) used by several Eastern Caribbean countries, or the Bahamian Dollar (BSD) in the Bahamas. These currencies are often pegged to the US Dollar, providing stability in exchange rates. The Caribbean region is known for its diverse economies, and the dollar plays a crucial role in trade and tourism. The value of these currencies can fluctuate based on economic conditions, tourism trends, and international trade, impacting the financial landscape of the Caribbean nations.