The
pound (
currency signA currency sign is a graphic symbol often used as a shorthand for a currency's name. Internationally, ISO 4217 codes are used instead of currency signs, though currency signs may be in common use in their respective countries...
:
£The pound sign is the symbol for the pound sterling—the currency of the United Kingdom . The same symbol is used for currencies of the same name in some other countries and territories; there are other countries whose currency is called "the pound", but that do not use the £ symbol.The symbol...
;
banking codeISO 4217 is the international standard describing three-letter codes to define the names of currencies established by the International Organization for Standardization...
:
GIP) is the currency of
GibraltarGibraltar is a self-governing British overseas territory located on the southern end of the Iberian Peninsula and Europe at the entrance of the Mediterranean overlooking the Strait of Gibraltar. The territory covers and shares a land border with Spain to the north...
. It is exchangeable with the UK
pound sterlingThe pound sterling , often simply called the pound, is the currency of the United Kingdom, its Crown dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands and British Antarctic Territory...
at
par valuePar value, in finance and accounting, means stated value or face value. From this comes the expressions at par , over par and under par ....
.
Until 1898, the currency situation in Gibraltar was complicated, with a system based on the real being employed which encompassed British, Spanish and Gibraltarian coins. From 1825, the real (actually the Spanish
real de plataThe real was a unit of currency in Spain for several centuries.-History:The first real was introduced by King Pedro I of Castile at a value of 3 maravedíes. This rate of exchange increased until 1497, when the real was fixed at a value of 34 maravedíes...
) was tied to the pound at a value of 6½ pence (1
Spanish dollarThe Spanish dollar is a silver coin, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. It was legal tender in the United States until an Act of the United States Congress discontinued the practice in 1857...
= 4
shillingThe shilling is a unit of currency used in current and former English Commonwealth countries and still used in countries which have become republics, such as Kenya. The word shilling comes from schilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of...
s 4
penceA penny , also known as a cent or minor, is a coin or a unit of currency used in several English-speaking countries.Pennies appear to have been in use since the first use of minted coinage.-Etymology:...
).
In 1898, the British pound was made sole legal tender.
The
pound (
currency signA currency sign is a graphic symbol often used as a shorthand for a currency's name. Internationally, ISO 4217 codes are used instead of currency signs, though currency signs may be in common use in their respective countries...
:
£The pound sign is the symbol for the pound sterling—the currency of the United Kingdom . The same symbol is used for currencies of the same name in some other countries and territories; there are other countries whose currency is called "the pound", but that do not use the £ symbol.The symbol...
;
banking codeISO 4217 is the international standard describing three-letter codes to define the names of currencies established by the International Organization for Standardization...
:
GIP) is the currency of
GibraltarGibraltar is a self-governing British overseas territory located on the southern end of the Iberian Peninsula and Europe at the entrance of the Mediterranean overlooking the Strait of Gibraltar. The territory covers and shares a land border with Spain to the north...
. It is exchangeable with the UK
pound sterlingThe pound sterling , often simply called the pound, is the currency of the United Kingdom, its Crown dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands and British Antarctic Territory...
at
par valuePar value, in finance and accounting, means stated value or face value. From this comes the expressions at par , over par and under par ....
.
History
Until 1898, the currency situation in Gibraltar was complicated, with a system based on the real being employed which encompassed British, Spanish and Gibraltarian coins. From 1825, the real (actually the Spanish
real de plataThe real was a unit of currency in Spain for several centuries.-History:The first real was introduced by King Pedro I of Castile at a value of 3 maravedíes. This rate of exchange increased until 1497, when the real was fixed at a value of 34 maravedíes...
) was tied to the pound at a value of 6½ pence (1
Spanish dollarThe Spanish dollar is a silver coin, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. It was legal tender in the United States until an Act of the United States Congress discontinued the practice in 1857...
= 4
shillingThe shilling is a unit of currency used in current and former English Commonwealth countries and still used in countries which have become republics, such as Kenya. The word shilling comes from schilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of...
s 4
penceA penny , also known as a cent or minor, is a coin or a unit of currency used in several English-speaking countries.Pennies appear to have been in use since the first use of minted coinage.-Etymology:...
).
In 1898, the British pound was made sole legal tender. Since 1927, Gibraltar has issued its own banknotes and, since 1988, its own coins. Gibraltar
decimalisedIn the management of currencies, decimalisation is the process of converting from traditional denominations to a "decimal" system, usually with two units differing by a factor of one hundred....
in 1971 at the same time
as the UKDecimal Day was the day the United Kingdom and Ireland decimalised their currencies.-The old system:Under the old currency of pounds, shillings and pence, the pound was made up of 240 pence , with twelve pence in a shilling and 20 shillings in a...
, replacing the system of 1 pound = 20 shillings = 240 pence with one of 1 pound = 100 (new) pence.
Relationship with the British pound
The Currency Notes Act of 1934 confers on the Government of Gibraltar the right to print its own notes, and the obligation to back and exchange each printed note with sterling reserves at a rate of one pound to one pound sterling. Although Gibraltar notes are denominated in "pounds sterling", they are not legal tender in the UK, but they are exchangeable at par for UK notes at banks. Gibraltar's coins are the same weight, size and metal as UK coins, although the designs are different, and can be found in circulation in the UK.
British coins and
Bank of England notesThe Bank of England is the Central Bank of the United Kingdom and one of eight banks legally authorised to issue banknotes in the UK. Only Bank of England notes have the status of legal tender, and only within England and Wales; they are accepted in Scotland and Northern Ireland along with other...
circulate in Gibraltar and are universally accepted and interchangeable with Gibraltar issues.
Coins
In 1988, coins in denominations of 1, 2, 5, 10, 20 and 50 pence and 1 pound were introduced which bore specific designs for and the name of Gibraltar. They were the same sizes and compositions as the corresponding British coins, with 2 pound coins introduced in 1999.
Banknotes
In 1914, the government introduced notes in denominations of 2 and 10 shillings, 1, 5 and 50 pounds. The 2 shilling and 50 pound notes were not continued when a new series of notes was introduced in 1927. The 10 shilling note was replaced by the 50 pence coin during the process of decimalization. In 1975, 10 and 20 pound notes were introduced, followed by 50 pounds in 1986. The 1 pound note was discontinued in 1988. In 1995, a new series of notes was introduced which, for the first time, bore the words "pounds sterling" rather than just "pounds".
See also
- Economy of Gibraltar
The economy of Gibraltar is managed and controlled by the Government of Gibraltar. Whilst being part of the European Union, the British overseas territory of Gibraltar has a separate legal jurisdiction from the United Kingdom and enjoys a different tax system....
- Coins of the Gibraltar pound
- Currency board
A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target....
- Highest valued currency unit
The highest valued currency unit is the currency in which a single unit buys the highest number of any given other currency or the largest amount of a given good...
External links