According to Frommers, the official currency in Nassau, Bahamas is the Bahamian dollar. The Bahamian dollar is pegged to the U.S. dollar, making the two currencies continually equivalent. Nassau Paradise Island notes that the U.S. dollar is accepted as a form of currency in many places in Nassau.
Frommers notes that while merchants accept most major credit cards in the Bahamas, the issuing financial institution may charge a fee for each transaction when using the card in Nassau. Some places may not accept a magnetic stripe card, preferring cards that utilize a chip and pin system for security purposes. Frommers advises visitors who want to exchange U.S. currency for Bahamian dollars to use ATMs to withdraw cash because they often have the lowest exchange rate.