Gibraltar pound
Encyclopedia
The Gibraltar pound is the currency of Gibraltar
. It is exchangeable with the UK pound sterling
at par value
.
) was tied to the pound at the rate of 1 Spanish dollar
to 4 shilling
s 4 pence
(equivalent to 21.67 pence today). In 1872, however, the Spanish currency became the sole legal tender in Gibraltar. In 1898, the Spanish–American War made the Spanish peseta
drop alarmingly and the pound was introduced as the sole currency of the colony, initially in the form of British coins and banknotes.
In 1898, the British pound was made sole legal tender, although the Spanish peseta continued in circulation until the Spanish Civil War
. Since 1927, Gibraltar has issued its own banknotes and, since 1988, its own coins. Gibraltar decimalised
in 1971 at the same time as the UK
, replacing the system of 1 pound = 20 shillings = 240 pence with one of 1 pound = 100 (new) pence.
British coins and Bank of England notes
circulate in Gibraltar and are universally accepted and interchangeable with Gibraltar issues.
Tourists from the UK are strongly advised to change their unspent Gibraltar pounds into UK currency at parity in Gibraltar before departure as UK banks charge for exchanging the Gibraltar Pound.
Gibraltar
Gibraltar is a British overseas territory located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean. A peninsula with an area of , it has a northern border with Andalusia, Spain. The Rock of Gibraltar is the major landmark of the region...
. It is exchangeable with the UK 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...
at par value
Par value
Par 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 1872, 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 plataSpanish real
The real was a unit of currency in Spain for several centuries after the mid-14th century, but changed in value relative to other units introduced...
) was tied to the pound at the rate of 1 Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
to 4 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 4 pence
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
(equivalent to 21.67 pence today). In 1872, however, the Spanish currency became the sole legal tender in Gibraltar. In 1898, the Spanish–American War made the Spanish peseta
Spanish peseta
The peseta was the currency of Spain between 1869 and 2002. Along with the French franc, it was also a de facto currency used in Andorra .- Etymology :...
drop alarmingly and the pound was introduced as the sole currency of the colony, initially in the form of British coins and banknotes.
In 1898, the British pound was made sole legal tender, although the Spanish peseta continued in circulation until the Spanish Civil War
Spanish Civil War
The Spanish Civil WarAlso known as The Crusade among Nationalists, the Fourth Carlist War among Carlists, and The Rebellion or Uprising among Republicans. was a major conflict fought in Spain from 17 July 1936 to 1 April 1939...
. Since 1927, Gibraltar has issued its own banknotes and, since 1988, its own coins. Gibraltar decimalised
Decimalisation
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....
in 1971 at the same time as the UK
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...
, 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 they are occasionally found in circulation in the UK.British coins and Bank of England notes
Bank of England note issues
The Bank of England, which is now the Central Bank of the United Kingdom, has issued banknotes since 1694. Since 1970, its new series of notes have featured portraits of British historical figures. Of the eight banks authorised to issue banknotes in the UK, only the Bank of England can issue...
circulate in Gibraltar and are universally accepted and interchangeable with Gibraltar issues.
Tourists from the UK are strongly advised to change their unspent Gibraltar pounds into UK currency at parity in Gibraltar before departure as UK banks charge for exchanging the Gibraltar Pound.
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. A new coin of 5 pound was issued in 2010 with the inscription "Elizabeth II · Queen of Gibraltar"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". The government of Gibraltar introuduced a new series of banknotes beginning the 10 and 50 pound sterling notes issued on July 8, 2010. On May 11, 2011, the 5, 20 and 100 pound sterling notes were issued.See also
- Economy of GibraltarEconomy of GibraltarThe 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 boardCurrency boardA 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
- Christopher IronsideChristopher IronsideChristopher Ironside FSIA 1970, OBE 1971, FRBS 1977 was an English painter and coin designer, particularly known for the reverse sides of the new British coins issued on decimalisation in 1971....
OBE coin designer: reverse design of the 25 New Pence coin, Barbary Ape (issued 1971).