Bermuda's currency is the Bermudian dollar BMD, abbreviated '$', which is divided into 100 cents. It comes in the same denominations and sizes as US currency, except there is a one dollar coin instead of a banknote.
The currency is directly tied to US currency, so one US dollar always equals one Bermudan dollar; therefore US dollars are accepted everywhere in Bermuda at equal value. The same is true if you are from the Bahamas, East Timor, or Pamama, as the Bahamian dollar, and East Timer Centavo, Panamanian Balboa coins also equal the same value as the Bermudian dollar.
Bermuda offers ATMs in several tourist locations, including their airport, St. George, Somerset, and Hamilton. Though MasterCard and Visa debit and credit cards are frequently accepted, it is common for smaller hotels and bed and breakfasts to not accept them. Before booking, check with the hotel or bed and breakfast in order to ensure they accept credit cards if you plan to pay this way. Though most stores accept cards to accommodate tourists, many hotels and even larger resort areas do not. Gratuities are typically paid in cash as well.
If changing money before coming to Bermuda, then change into US dollars. Remember that Bermudian dollars cannot be changed outside the country, so should be spent or exchanged before leaving.
A nice assortment of stores exists in Hamilton, especially on Front Street. The area can be explored easily by foot. Front Street, is one of the main shopping streets, and is facing the harbour. In recent years, two of the largest and oldest department stores on Front Street have closed. However, A.S. Coopers, first established in 1897, remains.
Shopping can also be found in the easily walked town of St George as well as in Dockyard, which has a small shopping mall. Smaller stores can be found throughout the island offering a variety of goods.
Bermuda can be expensive. Because of Bermuda's steep import tax, all goods sold in stores that come from off the island carry a significant markup. When buying groceries or other non-souvenir items of that nature, be aware that the best prices are usually away from the more "touristy" areas. For example, one cup of yoghurt might cost about $1.60 at a grocery store near hotels; it will cost 25% less at a grocery store further from the tourist attractions, and only 10 cents more than in the United States. When buying these sort of things, go to where the locals go.