The Sterling Area

[Galapagos]

By the sterling area, I mean the UK, plus the Channel Islands and the Isle of Man (the Crown Dependencies), plus the Overseas Territories where pounds and pence circulate:-

1] UK

2] Isle of Man

3] Jersey

4] Guernsey

5] Gibraltar

6] Saint Helena and Ascension

7] The Falkland Islands


However, this is not so straightforward as it formerly appeared to me. Andyg pointed out to me that the Gibraltarian Goverment refers to its pound as the Gibraltarian pound, which is at par with the UK pound. So despite the fact that the specifications of their coins are the same as ours, and that they likewise carry a portrait of QEII on the obverse, they are in fact a different currency, and not just "our" coins with different reverse designs.

Christian, by contrast, brought to my attention this official statement from Guernsey: "The Bailiwick's currency is sterling and not something separate (for example, the Guernsey pound)."

So Guernsey's coins are in effect just "our" coins, but with different reverse designs.

Interestingly, whether these coins are sterling or not, only UK coinage is legal tender in the UK. But as we know, this does not stop them from ending up in circulation in the UK!

Christian also noted that Guernsey appears to have the power to decide which currency it will use: sterling, the euro, a separate Guernsey pound, or whatever. This is not decided by the UK.

So this leads me to the question, which of those "other" pounds that I have NOT discussed is a local pound and not sterling? And which other of these crown dependencies and overseas territories have the power unilaterally to adopt a different currency from their existing one?

[Galapagos]

From Wikipedia:-

"The Saint Helena pound (also called simply "pound") is the currency of the British overseas territories of Saint Helena and Ascension Island. It is fixed at parity with the pound sterling and is subdivided into 100 pence. In 1976 the government began issuing notes, with circulation coins following in 1984. Prior to 1984, both St Helena and Ascension Island had issued commemorative coins but used British circulation coins. In 1984, coins were introduced in the names of St Helena and Ascension in denominations of 1, 2, 5, 10 and 50 pence and 1 pound. All the coins were the same size and composition as the corresponding British coins. 20 pence coins were introduced in 1998, followed by 2 pounds in 2002, although the first bi-metal £2 coins were issued in and dated 2003.

St Helena does not have a central bank of its own, and the only banking services on the island are provided by a commercial bank, the Bank of St Helena. St Helena banknotes and coins are issued by the St Helena Government, not the Bank of St Helena. Saint Helena banknotes are accepted on Saint Helena and Ascension Island only. Note that they cannot be exchanged in UK banks. They can be obtained while sailing to the island on the RMS Saint Helena, or from the Bank of St Helena on arrival. UK pound sterling banknotes are also accepted on the island. Some outlets may accept other major currencies. Notes and coins from other UK territories, including the Falkland Islands are not normally accepted in outlets."

So St Helena and Ascension are NOT in the sterling area. I wanted to bring all the British-associated pound-using territories into one topic, and this is the best place to do it, I think.

[Galapagos]

From Wikipedia:

"The pound is the currency of the Falkland Islands, a British Overseas Territory in the South Atlantic Ocean. The symbol is the pound sign, £, or alternatively FK£, to distinguish it from other pound-denominated currencies. The ISO 4217 currency code is FKP. The Falklands pound has always been pegged to the pound sterling at par and banknotes of both currencies are used interchangeably on the islands (although only notes issued by banks in the United Kingdom are generally accepted in Britain itself).

Specific issues of banknotes have been made for the Falkland Islands since 1899. In 1971, the pound was decimalised and subdivided into 100 pence. Coins have been minted specifically for the Falklands since 1974. During the earlier Argentine occupation, the peso circulated. In 1974, ½, 1, 2, 5 and 10 pence coins were introduced. 50 pence coins were introduced in 1980, followed by 20 pence in 1982, 1 pound in 1987 and a circulating 2 pounds in 2004. The ½ penny coin was last issued in 1983 and was demonetised shortly after. Smaller versions of the 5p, 10p and 50p, corresponding to the current UK issues, were issued in 1998, replacing the larger versions (which for the 5p was eight years after its introduction in the UK). The introduction of the circulation £2 coin in 2004 was six years after the same coin was issued in the UK. All the coins have the same composition and size as the corresponding British coins."

So again, the Falklands are not in the sterling area.

[Galapagos]

From Wikipedia:

"The pound is the currency of Jersey. Jersey is in currency union with the United Kingdom, and the Jersey pound is not a separate currency but is an issue of banknotes and coins by the States of Jersey denominated in pound sterling, in a similar way to the banknotes issued in Scotland and Northern Ireland (see Banknotes of the pound sterling). It can be exchanged at par with other sterling coinage and notes (see also sterling zone).
For this reason, ISO 4217 does not include a separate currency code for the Jersey pound, but where a distinct code is desired JEP is generally used.

Both Jersey and Bank of England notes are legal tender in Jersey and circulate together, alongside the Guernsey pound and Scottish banknotes. Although the Jersey notes are not legal tender in the United Kingdom, creditors and traders may accept them if they so choose."

[Galapagos]

From Wikipedia:

"The pound is the currency of Guernsey. Since 1921, Guernsey has been in currency union with the United Kingdom and the Guernsey pound is not a separate currency but is a local issue of banknotes and coins denominated in pound sterling, in a similar way to the banknotes issued in Scotland and Northern Ireland (see Banknotes of the pound sterling). It can be exchanged at par with other sterling coinage and notes (see also sterling zone). For this reason, ISO 4217 does not include a separate currency code for the Guernsey pound, but where a distinct code is desired GGP is generally used.

The Guernsey pound, and other notes denominated in pound sterling (including those issued by the Bank of England, Scottish, Manx and Northern Irish notes and the Jersey pound) may be used in Guernsey. Some shops will also accept euros and other currencies can be exchanged in bureaux de change. The Guernsey pound is legal tender only in Guernsey but also circulates freely in Jersey and is acceptable in most places in the U.K. which will accept Scottish and Northern Irish notes. It can also be exchanged in other places using banks and bureaux de change"

[Galapagos]

From Wikipedia:

"The island of Alderney has its own currency, which by law must be the same as the United Kingdom (see pound sterling).

Schedule 2 of the Government of Alderney Law provides that the States of Alderney may, by Ordinance, prescribe "the legal currency and denominations of the legal currency, so however that that currency, and those denominations shall be the same in Alderney as in the United Kingdom; and prescribing those notes and coins the tender of which is a legal tender of the payment of money".

Alderney does not issue its own banknotes.

Alderney coins are widely available to collectors but are not in general circulation. Since 1989, Alderney has issued occasional commemorative coins of £1, £2, or £5 face value in cupro-nickel, silver, or gold. In normal use in Alderney, Guernsey and UK notes and coins circulate side by side year round, while in the Summer tourist season, Jersey notes and coins are also common, as well as Scottish and occasionally even Manx, or Northern Irish notes."

[Galapagos]

From Wikipedia:

"The Manx pound or Isle of Man pound is a local issue of the pound sterling, issued by the Isle of Man Government. It is subdivided into 100 pence. The Isle of Man is in currency union with the United Kingdom, and the Manx pound is a local issue of coins and banknotes denominated in pounds sterling, in a similar way to the banknotes issued in Scotland and Northern Ireland (see Sterling banknotes). It can be exchanged at par with other sterling coinage and notes (see also Sterling zone). The Isle of Man Treasury states that the locally issued currency, United Kingdom coinage and Bank of England notes are all legal tender within the island. For this reason, ISO 4217 does not include a separate currency code for the Manx pound, but where a distinct code is desired IMP is generally used.

UK notes and coins are generally accepted in the Isle of Man, and Manx notes and coins are generally accepted in the UK, although travellers are advised to exchange them before leaving the island. Many banks and Bureaux de Change in the UK will convert Manx notes to British notes at no cost. To assist those travelling, the ATMs at the Sea Terminal, Douglas, and at Isle of Man Airport both issue English notes only."

[Galapagos]

From Wikipedia:

"The pound (currency sign: £; banking code: GIP) is the currency of Gibraltar. It is exchangeable with the UK pound sterling at par value. 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 notes circulate in Gibraltar and are universally accepted and interchangeable with Gibraltar issues. 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. In 1995, a new series of notes was introduced which, for the first time, bore the words 'pounds sterling' rather than just 'pounds'. "


So this is getting complicated. The Gibraltarian pound is not the UK pound - but it's still the pound sterling. More research needed!

[Galapagos]

So now I have questions.

1] Can we call ALL these currencies sterling - even all those that are separate but different?

2] In theory Guernsey can choose whichever currency it wants to use; as Christian has shown me elsewhere, it has the autonomy and power in law to do so. However, Alderney is required by law to use British currency. But wait a minute: Alderney is a dependency of Guernsey, along with Sark and Herm. Could we really have Guernsey using the euro whilst its dependency, Alderney, was still required to use sterling?

3] Do then all these polities have the right to use which currency they choose?

Anyway, one division is clear. The Crown Dependencies are all in currency union with the UK. The overseas territories, meanwhile, each use their own version of the pound, not the UK pound, but all are at par with the UK pound.

[Galapagos]

From Wikipedia:

"The pound sterling (symbol: £; ISO code: GBP), often simply called the pound, is the currency of the United Kingdom, its Crown dependencies (the Isle of Man and the Channel Islands) and the British Overseas Territories of South Georgia and the South Sandwich Islands and British Antarctic Territory. It is subdivided into 100 pence (singular: penny).

The Gibraltar pound, Falkland Islands pound and Saint Helena pound are separate currencies, pegged to the pound sterling."

Right. So that's two territories we've added to the UK currency union:

1] South Georgia and the South Sandwich Islands

2] British Antarctic Territory

The other three are the Crown Dependencies, and of course there's the UK itself.

[translateltd]

So now I have questions.

1] Can we call ALL these currencies sterling - even all those that are separate but different?

My understanding is that only the British pound is "sterling" - the rest are just pounds, even if they're at par.  But where I got that understanding from is lost in the mists of my bookshelf.

[Galapagos]

To the best of my knowledge, Jersey and Guernsey readily accept each other's coinage and notes, which I believe are legal tender throughout the Channel Islands, as are the UK's coins and notes. I have never seen Manx coins or notes circulating in the Channel Islands. I doubt they are legal tender there. How ready the Islanders would be to accept them, I don't know.

Apart from in Jersey and Guernsey, no non-UK local coinages are readily accepted. They will all accept UK coinage and notes, but not each others'. Hence the residents of St Helena, who often take the ship to the Falkland Islands, complain that the Falklanders will not accept their coins or notes, despite the fact that the two currencies are at par.

[Galapagos]

My understanding is that only the British pound is "sterling" - the rest are just pounds, even if they're at par.

Wikipedia agrees with you. See my prior posts. But Gibraltar has started adding "pounds sterling" to its banknotes since 1995. 

[chrisild]

By the way, what I wrote about Guernsey elsewhere, and that quote, can no longer be retrieved from the gov.gg site, it seems. However, you can still view the page, in various versions, here: http://web.archive.org/web/*/http://www.gov.gg/emu/bailiwickmain.htm

Christian

[Galapagos]

Thanks for that link, Christian. It clarifies some issues for me:

"The Working Party also considered the future of Guernsey's note and coin issue and the possibility of redenominating it into euro. 
No objections from the European monetary authorities are anticipated to a Guernsey euro-denominated issue, provided that it is easily distinguishable from those authorised by the European Central Bank."

So if the UK went into the euro, Guernsey would print and mint its own Guernsey variations of the euro banknotes and coins. They would still be "the euro", not a separate Guernsey euro. However, they would not be authorised issues by the European Central Bank, which would however have no objections to them.

Complex!

"The Working Party envisages that a Guernsey euro banknote and coin issue would operate in the same way as the existing sterling issue, circulating in the Bailiwick alongside European Central Bank authorised euro issues and being acceptable in Jersey and the Isle of Man. However, as with the existing sterling issue, it would have no legal status outside the Bailiwick."

So Channel Island notes and coinage ARE also acceptable in the Isle of Man. When I visited the IOM, I never saw any CI coins or notes circulating. There were plenty of Northern Irish banknotes in circulation, though.