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Gibraltar pound

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Gibraltar pound
File:Gibraltar5pounds.jpg
Gibraltar £5 banknote
ISO 4217
CodeGIP (numeric: 292)
Subunit0.01
Unit
PluralPounds
Symbol£‎
Denominations
Subunit
 1/100Penny
Plural
 PennyPence
Symbol
 Pennyp
Banknotes£5, £10, £20, £50, £100
Coins1p, 2p, 5p, 10p, 20p, 50p,
£1, £2, £5
Demographics
User(s) Gibraltar (alongside pound sterling)
Issuance
GovernmentGovernment of Gibraltar
 Websitewww.gibraltar.gov.gi
Valuation
Inflation2.9%
 SourceThe World Factbook, 2005
Pegged withpound sterling at par

The Gibraltar pound (currency sign: £; banking code: GIP) is the currency of Gibraltar. It is exchangeable with the UK pound sterling at par value.

History

Main article: Gibraltar real

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 plata) was tied to the pound at the rate of 1 Spanish dollar to 4 shillings 4 pence (equivalent to 21.67 pence today). In 1872, however, the Spanish currency became the sole legal tender in Gibraltar.[1] 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.[1] 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.

Relationship with the British pound

The Currency Notes Act of 1934[2] 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 in theory exchangeable at par for UK notes at banks; in practice, at least one major UK bank will not accept or exchange Sterling notes issued by the Government of Gibraltar. 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 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

Main article: Coins of the Gibraltar pound
1 pound
Obverse Reverse

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" [3]

Banknotes

At the outbreak of World War I, Gibraltar was forced to issue banknotes to prevent paying out sterling or gold. These notes were issued under emergency wartime legislation, Ordinance 10 of 1914. At first the typeset notes were signed by hand by Treasurer Greenwood, though he later used stamps. The notes bore the embossed stamp of the Anglo-Egyptian Bank Ltd. and circulated alongside British Territory notes.[4] The 1914 notes were issued 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. [5]

Current GIP exchange rates
From Google Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD
From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD
From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD
From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD

See also

References

  1. ^ a b Bond, Peter (2003). 300 Years of British Gibraltar 1704-2004. Peter-Tan Publishing Co. p. 89.
  2. ^ Government of Gibraltar (1934). "Currency Notes Act" (PDF). Retrieved 2007-08-05. {{cite web}}: Unknown parameter |month= ignored (help)
  3. ^ http://www.the-rock-of-gibraltar.com/Gibraltar-News/8931/queen-of-gibraltar-gibraltar-queen-coin-fivepoundcoin-queenofgibraltar
  4. ^ Linzmayer, Owen (2012). "Gibraltar". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  5. ^ Gibraltar new note family now complete
Wikimedia Commons has media related to Money of Gibraltar.


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