Decimalisation
Encyclopedia
Decimal currency is the term used to describe any currency
that is based on one basic unit of currency and a sub-unit which is a power of 10
, most commonly 100.
Decimalisation is the process of converting an existing currency from traditional denominations
to a decimal
system.
The logical appeal of decimalisation in general
has generally been much more popular in currency than in physical measurements, and few countries have coupled the two processes.
All countries that had non-decimal currencies have decimalised, at least in practice.
sub-units to the base currency unit, but currencies based on 1000 sub-units also exist, especially in Arab countries.
For example:
Today, the only currencies which are not decimal are those that have no sub-units at all, except for:
Historically, non-decimal currencies
were much more common, such as the British pound Sterling
before decimalisation in 1971
. Until 1971, the pound Sterling worked on a system of pence (12 to a shilling) and shillings (20 to a pound), plus other combinations (ha'pence
, guinea
, and crown); and in addition, until 1960 the penny was divided into 4 farthings. A pound could be subdivided in 19 different ways into integral numbers of pence (for example, 1/4, 1/5, 1/6, 1/8 and 1/10 of a pound were respectively 60, 48, 40, 30, and 24 pence) and in 8 additional ways into integral numbers of farthings (for example, 1/64 pound was 3 pence 3 farthings, written 3¾d).
converted to a decimal currency in 1704, with the ruble
being equal to 100 kopeck
s, thus making Russian ruble
the world's first decimal currency.
France
introducing the franc
in 1795 to replace the Livre tournois
, abolished during the French Revolution
. France introduced decimalisation in a number of countries that it occupied during the Napoleonic period
.
Sweden
introduced decimal currency in 1855. The currency riksdaler was divided into 100 öre
. The riksdaler was renamed krona
in 1873.
The Austro-Hungarian Empire decimalised the Austro-Hungarian gulden
in 1857, concurrent with its transition from the Conventionsthaler
to the Vereinsthaler
standard.
Cyprus
decimalised the Cypriot pound
in 1955 by dividing it into 1000 mils, later replaced by 100 cents.
On Decimal Day
, 15 February 1971, the United Kingdom
decimalised the pound sterling
and the Republic of Ireland
the Irish pound
.
Malta
decimalised its currency, the lira
, in 1972.
was used, the decimalisation process either defines one new penny = pound, where the main unit (the pound) is not changed; or a new main unit (such as the dollar), is introduced as a half pound, and one cent = dollar.
The following table shows the conversion of common denominations of coins of the £sd system.
The farthing, at 1/4 penny, was never converted, as it ceased to be legal tender
a decade prior to decimalisation. In 1971, a new penny would have been worth 9.6 farthings.
was of decimal denomination from the outset of home minted currency in 1792 with the dollar
being equal to 100 cents, but other currencies were also accepted for some time after the standard was set. The Spanish dollar, a non-decimalized currency, was accepted as official currency in the U.S. alongside the U.S. dollar until 1857.
Decimalisation in Canada was complicated by the different jurisdictions before Confederation in 1867. In 1841, the united Province of Canada's Governor General, Lord Syndenham, argued for establishment of a bank that would issue dollar currency. Francis Hincks, who would become the Province of Canada's Prime Minister in 1851, favoured the plan. Ultimately the provincial assembly rejected the proposal. In June 1851, the Canadian legislature revisited the issue, and passed legislation that required the provincial accounts to be kept in decimalised format; dollars and cents. The establishment of a central bank was not touched upon in the 1851 legislation. The British government delayed the implementation of the currency change on a technicality, wishing to distinguish the Canadian currency from the United States currency by referencing the units as "Royals" not "Dollars". The British delay was overcome by the Currency Act of 1 August 1854. In 1858 coins denominated in cents and imprinted with "Canada" were issued for the first time.
Bermuda decimalised in 1970, the Bermudian dollar was equal to 8 shillings 4 pence(=100 pence).
Decimalisation occurred in:
The colonial elite, the main advocates of decimalisation, based their case on two main arguments: The first was for facilitation of trade and economic ties with the United States; the colonies' largest trading partner; the second was to simplify calculations and reduce accounting errors.
was introduced on 14 February 1961. A Decimal Coinage Commission had been set up in 1956 to consider a move away from the denominations of pounds, shillings and pence, submitting its recommendation on 8 August 1958. It replaced the South African pound
as legal tender, at the rate of 2 rand = 1 pound or 10 shilling
s to the rand. Australia, New Zealand and Rhodesia
also chose ten shillings as the base unit of their new currency.
decimalised on 14 February 1966, with the new Australian dollar
equivalent to ten shillings or half an Australian pound
in the previous currency. Since a shilling became equal to ten cents, the Australian cent was equal to 1.2 Australian pence, although they were usually exchanged on a 1:1 basis during the brief period when both were circulating.
New Zealand
decimalised on 10 July 1967, with the New Zealand dollar
replacing the New Zealand pound
. The conversion rates were the same as Australia's - 10c to one shilling, one dollar to 10 shillings, and two dollars to one pound. Confusion was expected with twelve pence becoming ten cents, such as people expecting four cents' change from paying ten cents/one shilling for an item costing eight cents. To help avoid this, the Decimal Currency Board recommended on inter-currency transactions (e.g. paying 4c with £sd coins, or paying 4d with dollar coins) to pay to the next highest five cents or sixpence to get the correct change.
(known in the West as Ceylon at that time) decimalised in 1869.
India
changed from the rupee
, anna, pie system to decimal currency on 1 April 1957.
Yemen Arab Republic
introduced coinage system of 1 North Yemeni rial
=100fils
in 1974 to replace former system of 1 rial = 40 buqsha = 80 halala = 160 zalat. The country is one of the last to convert its coinage.
= 64 paise = 192 pies was used, the decimalisation process defines 1 new paisa = rupee. The following table shows the conversion of common denominations of coins issued in modern India and Pakistan. Bold denotes the actual denomination written on the coins
s and usually in blocks of many thousands, stock exchanges in the U.S. used eighths or sixteenths of dollars, until converting to decimals between September 2000 and April 2001.
and Madagascar
theoretically retain currencies with units whose values are in the ratio five to one: the Mauritanian ouguiya
(MRO) is equivalent to five khoums, and the Malagasy ariary
(MGA) to five iraimbilanja
.
In practice, however, the value of each of these five units is quite small: as of 2010, the MRO is traded against the euro
at about 370 to one, and the MGA at about 2,900 to one. In each of these countries, the smaller denomination is no longer used, and coins denominated in khoums and iraimbilanja are no longer minted.
notes and coins on 1 January 2002, the plans and experiences of various decimalisations, particularly decimalisation in the United Kingdom in 1971, were studied by the European Central Bank
because many of the lessons learned could be applied to the introduction of the euro. For example, on how to educate the public (particularly the elderly), how long the transition was likely to take, the likely speed of uptake of the new currency, the likely effects on inflation for those currencies where one euro cent, the smallest circulating denomination of the new currency, was greater in value than the smallest coin in circulation before the transition and the likely criminal activities which might be attempted during the transition period.
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
that is based on one basic unit of currency and a sub-unit which is a power of 10
10 (number)
10 is an even natural number following 9 and preceding 11.-In mathematics:Ten is a composite number, its proper divisors being , and...
, most commonly 100.
Decimalisation is the process of converting an existing currency from traditional denominations
Denomination (currency)
Denomination is a proper description of a currency amount, usually for coins or banknotes. Denominations may also be used with other means of payment like gift cards. See also Redenomination.-Subunit and super unit:...
to a decimal
Decimal
The decimal numeral system has ten as its base. It is the numerical base most widely used by modern civilizations....
system.
The logical appeal of decimalisation in general
Decimalization process
Decimalization process refers to the conversion of measurements to a "decimal" system, i.e. one where the all ratios between the different measuring units are powers of ten....
has generally been much more popular in currency than in physical measurements, and few countries have coupled the two processes.
All countries that had non-decimal currencies have decimalised, at least in practice.
Decimal currency
Decimal currencies have sub-units based on a factor of 10. These are most commonly 100100 (number)
100 is the natural number following 99 and preceding 101.-In mathematics:One hundred is the square of 10...
sub-units to the base currency unit, but currencies based on 1000 sub-units also exist, especially in Arab countries.
For example:
- 100 centCent (currency)In many national currencies, the cent is a monetary unit that equals 1⁄100 of the basic monetary unit. Etymologically, the word cent derives from the Latin word "centum" meaning hundred. Cent also refers to a coin which is worth one cent....
s make one dollarDollarThe dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...
in various countries. - 1000 TunisiaTunisiaTunisia , officially the Tunisian RepublicThe long name of Tunisia in other languages used in the country is: , is the northernmost country in Africa. It is a Maghreb country and is bordered by Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east. Its area...
n millimes make one dinarTunisian dinarThe dinar is the currency of Tunisia. It is subdivided into 1000 milim or millimes . The abbreviation DT is often used in Tunisia, although writing "dinar" after the amount is also acceptable ; the abbreviation TD is also mentioned in a few places, but is less frequently used, given the common use...
.
Today, the only currencies which are not decimal are those that have no sub-units at all, except for:
- the MauritaniaMauritaniaMauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...
n ouguiyaMauritanian ouguiyaThe ouguiya , also spelt "ougiya," is the currency of Mauritania. It is the only circulating currency other than the Malagasy ariary whose division units are not based on a power of ten, each ouguiya comprising five khoums .The ouguiya was introduced in 1973, replacing the CFA franc at a rate of 1...
, 1 ouguiya = 5 khoum, and - the ariary of MadagascarMadagascarThe Republic of Madagascar is an island country located in the Indian Ocean off the southeastern coast of Africa...
: 1 ariary = 5 iraimbilaja.
Historically, non-decimal currencies
Non-decimal currencies
A non-decimal currency is a currency which has sub-units that are a non-decimal fraction of the main unit, i.e. the number of sub-units in a main unit is not a power of 10.- Contemporary non-decimal currencies :...
were much more common, such as the British pound Sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
before decimalisation in 1971
Decimal Day
Decimal Day was the day the United Kingdom and Ireland decimalised their currencies.-Old system:Under the old currency of pounds, shillings and pence, the pound was made up of 240 pence , with 12 pence in a shilling and 20 shillings in a...
. Until 1971, the pound Sterling worked on a system of pence (12 to a shilling) and shillings (20 to a pound), plus other combinations (ha'pence
British Halfpenny coin
The British halfpenny coin was worth 1/480th of a pound sterling. At first in its 700 year history it was made from silver but as the value of silver increased, the coin was made from base metals. It was finally abandoned in 1969 as part of the process of decimalising the British currency...
, guinea
Guinea (British coin)
The guinea is a coin that was minted in the Kingdom of England and later in the Kingdom of Great Britain and the United Kingdom between 1663 and 1813...
, and crown); and in addition, until 1960 the penny was divided into 4 farthings. A pound could be subdivided in 19 different ways into integral numbers of pence (for example, 1/4, 1/5, 1/6, 1/8 and 1/10 of a pound were respectively 60, 48, 40, 30, and 24 pence) and in 8 additional ways into integral numbers of farthings (for example, 1/64 pound was 3 pence 3 farthings, written 3¾d).
Europe
RussiaRussia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
converted to a decimal currency in 1704, with the ruble
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
being equal to 100 kopeck
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
s, thus making Russian ruble
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
the world's first decimal currency.
France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
introducing the franc
Franc
The franc is the name of several currency units, most notably the Swiss franc, still a major world currency today due to the prominence of Swiss financial institutions and the former currency of France, the French franc until the Euro was adopted in 1999...
in 1795 to replace the Livre tournois
Livre tournois
The livre tournois |pound]]) was:#one of numerous currencies used in France in the Middle Ages; and#a unit of account used in France in the Middle Ages and the early modern period.-Circulating currency:...
, abolished during the French Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...
. France introduced decimalisation in a number of countries that it occupied during the Napoleonic period
Napoleon I of France
Napoleon Bonaparte was a French military and political leader during the latter stages of the French Revolution.As Napoleon I, he was Emperor of the French from 1804 to 1815...
.
Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
introduced decimal currency in 1855. The currency riksdaler was divided into 100 öre
Öre
Öre is the discontinued centesimal subdivision of the Swedish krona. The plural and singular are the same in the indefinite forms, whereas the singular definite form is öret and the plural definite is örena. The name derives from the Latin aureus , the name of a coin worth 25 denarii...
. The riksdaler was renamed krona
Swedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...
in 1873.
The Austro-Hungarian Empire decimalised the Austro-Hungarian gulden
Austro-Hungarian gulden
The Gulden or forint was the currency of the Austrian Empire and later the Austro-Hungarian Empire between 1754 and 1892 when it was replaced by the Krone/korona as part of the introduction of the gold standard. In Austria, the Gulden was initially divided into 60 Kreuzer, and in Hungary, the...
in 1857, concurrent with its transition from the Conventionsthaler
Conventionsthaler
The Conventionstaler was a standard silver coin of the Holy Roman Empire. It was introduced in 1754 and contained one tenth of a Cologne mark of silver ....
to the Vereinsthaler
Vereinsthaler
The Vereinsthaler was a standard silver coin used in most German states and the Austrian Empire in the years prior to German unification.- Introduction :...
standard.
Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
decimalised the Cypriot pound
Cypriot pound
The pound, also known as the lira , was the currency of Cyprus, including the Sovereign Base Areas in Akrotiri and Dhekelia, until 31 December 2007, when the Republic of Cyprus adopted the euro...
in 1955 by dividing it into 1000 mils, later replaced by 100 cents.
On Decimal Day
Decimal Day
Decimal Day was the day the United Kingdom and Ireland decimalised their currencies.-Old system:Under the old currency of pounds, shillings and pence, the pound was made up of 240 pence , with 12 pence in a shilling and 20 shillings in a...
, 15 February 1971, the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
decimalised the pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
and the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
the Irish pound
Irish pound
The Irish pound was the currency of Ireland until 2002. Its ISO 4217 code was IEP, and the usual notation was the prefix £...
.
Malta
Malta
Malta , officially known as the Republic of Malta , is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya, with Gibraltar to the west and Alexandria to the east.Malta covers just over in...
decimalised its currency, the lira
Maltese lira
The lira was the currency of Malta from 1972 until 31 December 2007. The lira was abbreviated as Lm, although the traditional ₤ sign was often used locally...
, in 1972.
£sd conversion
In places where £sd£sd
£sd was the popular name for the pre-decimal currencies used in the Kingdom of England, later the United Kingdom, and ultimately in much of the British Empire...
was used, the decimalisation process either defines one new penny = pound, where the main unit (the pound) is not changed; or a new main unit (such as the dollar), is introduced as a half pound, and one cent = dollar.
The following table shows the conversion of common denominations of coins of the £sd system.
| Common name | Amount | New £p | New $c |
|---|---|---|---|
| Halfpenny | d. | p ≈ 0.208p | ¢ ≈ 0.417¢ |
| Penny Penny (British pre-decimal coin) The penny of the Kingdom of Great Britain and later of the United Kingdom, was in circulation from the early 18th century until February 1971, Decimal Day.... |
1d. | p ≈ 0.417p | ¢ ≈ 0.833¢ |
| Threepence | 3d. | p | ¢ ≈ 2.5¢ |
| Sixpence | 6d. | p | 5¢ |
| Shilling Shilling The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive... |
1/- | 5p | 10¢ |
| Florin Florin (English coin) The Florin or Double Leopard was an attempt in 1344 by English king Edward III to produce a gold coinage suitable for use in Europe as well as in England . It was 108 grains of nominal pure gold and had a value of six shillings The Florin or Double Leopard was an attempt in 1344 by English king... |
2/- | 10p | 20¢ |
| Half crown Half crown (British coin) The half crown was a denomination of British money worth half of a crown, equivalent to two and a half shillings , or one-eighth of a pound. The half crown was first issued in 1549, in the reign of Edward VI... |
2/6 | p | 25¢ |
| Crown | 5/- | 25p | 50¢ |
| Half sovereign | 10/- | 50p | $1 |
| Sovereign | £1 | £1 | $2 |
The farthing, at 1/4 penny, was never converted, as it ceased to be legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
a decade prior to decimalisation. In 1971, a new penny would have been worth 9.6 farthings.
North America
The initial currency of the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
was of decimal denomination from the outset of home minted currency in 1792 with the dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
being equal to 100 cents, but other currencies were also accepted for some time after the standard was set. The Spanish dollar, a non-decimalized currency, was accepted as official currency in the U.S. alongside the U.S. dollar until 1857.
Decimalisation in Canada was complicated by the different jurisdictions before Confederation in 1867. In 1841, the united Province of Canada's Governor General, Lord Syndenham, argued for establishment of a bank that would issue dollar currency. Francis Hincks, who would become the Province of Canada's Prime Minister in 1851, favoured the plan. Ultimately the provincial assembly rejected the proposal. In June 1851, the Canadian legislature revisited the issue, and passed legislation that required the provincial accounts to be kept in decimalised format; dollars and cents. The establishment of a central bank was not touched upon in the 1851 legislation. The British government delayed the implementation of the currency change on a technicality, wishing to distinguish the Canadian currency from the United States currency by referencing the units as "Royals" not "Dollars". The British delay was overcome by the Currency Act of 1 August 1854. In 1858 coins denominated in cents and imprinted with "Canada" were issued for the first time.
Bermuda decimalised in 1970, the Bermudian dollar was equal to 8 shillings 4 pence(=100 pence).
Decimalisation occurred in:
| Date | |
|---|---|
| Province of Canada | 1 August 1854 |
| Nova Scotia | 1 July 1860 (Ordered its first coinage in 1860, but they weren't shipped by the Royal Mint until 1862) |
| New Brunswick | 1 November 1860 (Like Nova Scotia, the coins were received in 1862) |
| Newfoundland | 1863 (Took effect in early 1865 and had different coinage from 1865 to 1947) |
| Vancouver Island | 1863 |
| British Columbia | 1865 |
| Manitoba | 1870 |
| Prince Edward Island | 1871 |
The colonial elite, the main advocates of decimalisation, based their case on two main arguments: The first was for facilitation of trade and economic ties with the United States; the colonies' largest trading partner; the second was to simplify calculations and reduce accounting errors.
South Africa
The randRand
-Places:*The Witwatersrand, ridge that runs through Gauteng, South Africa, which includes the East Rand and West Rand areas*Rand, New South Wales, small town in Australia*Rand, Lincolnshire, small village in Lincolnshire, England...
was introduced on 14 February 1961. A Decimal Coinage Commission had been set up in 1956 to consider a move away from the denominations of pounds, shillings and pence, submitting its recommendation on 8 August 1958. It replaced the South African pound
South African pound
In 1825, an imperial order-in-council made sterling coinage legal tender in all the British colonies. At that time, the only British colony in Southern Africa was the Cape of Good Hope Colony. As time went on, the British pound sterling and its associated subsidiary coinage became the currency of...
as legal tender, at the rate of 2 rand = 1 pound or 10 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s to the rand. Australia, New Zealand and Rhodesia
Rhodesia
Rhodesia , officially the Republic of Rhodesia from 1970, was an unrecognised state located in southern Africa that existed between 1965 and 1979 following its Unilateral Declaration of Independence from the United Kingdom on 11 November 1965...
also chose ten shillings as the base unit of their new currency.
Australia and New Zealand
AustraliaAustralia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
decimalised on 14 February 1966, with the new Australian dollar
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
equivalent to ten shillings or half an Australian pound
Australian pound
The pound was the currency of Australia from 1910 until 13 February 1966, when it was replaced by the Australian dollar. It was subdivided into 20 shillings, each of 12 pence.- Earlier Australian currencies :...
in the previous currency. Since a shilling became equal to ten cents, the Australian cent was equal to 1.2 Australian pence, although they were usually exchanged on a 1:1 basis during the brief period when both were circulating.
New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
decimalised on 10 July 1967, with the New Zealand dollar
New Zealand dollar
The New Zealand dollar is the currency of New Zealand. It also circulates in the Cook Islands , Niue, Tokelau, and the Pitcairn Islands. It is divided into 100 cents....
replacing the New Zealand pound
New Zealand pound
The pound was the currency of New Zealand between 1840 and 1967. Like the British pound, it was subdivided into 20 shillings each of 12 pence. As a result of the great depression of the early 1930s, the New Zealand agricultural export market to the UK was badly affected...
. The conversion rates were the same as Australia's - 10c to one shilling, one dollar to 10 shillings, and two dollars to one pound. Confusion was expected with twelve pence becoming ten cents, such as people expecting four cents' change from paying ten cents/one shilling for an item costing eight cents. To help avoid this, the Decimal Currency Board recommended on inter-currency transactions (e.g. paying 4c with £sd coins, or paying 4d with dollar coins) to pay to the next highest five cents or sixpence to get the correct change.
Asia
Sri LankaSri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
(known in the West as Ceylon at that time) decimalised in 1869.
India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
changed from the rupee
Rupee
The rupee is the common name for the monetary unit of account in India, Sri Lanka, Nepal, Pakistan, Mauritius, Seychelles, Maldives, and formerly in Burma, and Afghanistan. Historically, the first currency called "rupee" was introduced in the 16th century...
, anna, pie system to decimal currency on 1 April 1957.
Yemen Arab Republic
Yemen Arab Republic
The Yemen Arab Republic , also known as North Yemen or Yemen , was a country from 1962 to 1990 in the western part of what is now Yemen...
introduced coinage system of 1 North Yemeni rial
North Yemeni rial
The rial or riyal was the currency of North Yemen, first the Mutawakkilite Kingdom of Yemen, then the Yemen Arab Republic.-History:The Mutawakkilite Kingdom began issuing coins around the turn of the 20th century. The rial was divided into 160 zalat, 80 halala or 40 buqsha. During the reign of Imam...
=100fils
Fils
Fils or FILS can mean*Fils , a river in Germany*Fils , a subdivision of currency used in many Arab countries*fils, the French word for "son"*Firestone Indy Lights Series...
in 1974 to replace former system of 1 rial = 40 buqsha = 80 halala = 160 zalat. The country is one of the last to convert its coinage.
Rupee-anna-paisa-pie conversion
In India, Pakistan, and other places where a system of 1 rupee = 16 annasIndian anna
An Anna was a currency unit formerly used in India, equal to 1/16 rupee. It was subdivided into 4 Paise or 12 Pies . The term belonged to the Muslim monetary system...
= 64 paise = 192 pies was used, the decimalisation process defines 1 new paisa = rupee. The following table shows the conversion of common denominations of coins issued in modern India and Pakistan. Bold denotes the actual denomination written on the coins
| Rupee | Anna | Paisa | Pie | New paisa |
|---|---|---|---|---|
| 1 | ≈ 0.5208 | |||
| = 0.78125 | ||||
| 1 | 3 | = 1.5625 | ||
| 2 | 6 | = 3.125 | ||
| 1 | 4 | 12 | = 6.25 | |
| 2 | 8 | 24 | = 12.5 | |
| 4 | 16 | 48 | 25 | |
| 8 | 32 | 96 | 50 | |
| 1 | 16 | 64 | 192 | 100 |
Non-currency cases (security market)
In the special context of stating the prices of stocks, traded almost always in blocks of one hundred or more shareShare (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
s and usually in blocks of many thousands, stock exchanges in the U.S. used eighths or sixteenths of dollars, until converting to decimals between September 2000 and April 2001.
De facto decimalisation
MauritaniaMauritania
Mauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...
and Madagascar
Madagascar
The Republic of Madagascar is an island country located in the Indian Ocean off the southeastern coast of Africa...
theoretically retain currencies with units whose values are in the ratio five to one: the Mauritanian ouguiya
Mauritanian ouguiya
The ouguiya , also spelt "ougiya," is the currency of Mauritania. It is the only circulating currency other than the Malagasy ariary whose division units are not based on a power of ten, each ouguiya comprising five khoums .The ouguiya was introduced in 1973, replacing the CFA franc at a rate of 1...
(MRO) is equivalent to five khoums, and the Malagasy ariary
Malagasy ariary
The ariary is the currency of Madagascar. It is subdivided into 5 iraimbilanja and is one of only two non-decimal currencies currently circulating . The names ariary and iraimbilanja derive from the pre-colonial currency, with ariary being the name for a silver dollar...
(MGA) to five iraimbilanja
Iraimbilanja
The iraimbilanja is the divisory currency unit of Madagascar, being equal to one fifth of an ariary. The old Malagasy franc is equal in value to one iraimbilanja. As of early 2011 the value of one iraimbilanja is about US$0.0000989....
.
In practice, however, the value of each of these five units is quite small: as of 2010, the MRO is traded against the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
at about 370 to one, and the MGA at about 2,900 to one. In each of these countries, the smaller denomination is no longer used, and coins denominated in khoums and iraimbilanja are no longer minted.
Decimalisation experience and introduction of the euro
Before the introduction of physical euroEuro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
notes and coins on 1 January 2002, the plans and experiences of various decimalisations, particularly decimalisation in the United Kingdom in 1971, were studied by the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
because many of the lessons learned could be applied to the introduction of the euro. For example, on how to educate the public (particularly the elderly), how long the transition was likely to take, the likely speed of uptake of the new currency, the likely effects on inflation for those currencies where one euro cent, the smallest circulating denomination of the new currency, was greater in value than the smallest coin in circulation before the transition and the likely criminal activities which might be attempted during the transition period.
External links
- Plan for establishing uniformity in the Coinage, Weights, and Measures of the United States: text of a report to the U.S. House of Representatives by Thomas Jefferson.