What is the Gibraltar Pound (GIP)?

The official currency of Gibraltar is the Gibraltar pound (GIP). Gibraltar’s pound operates at a fixed exchange rate with British sterling.

Knowing the Gibraltar Pound

The Gibraltar government issued the pound under the 1934 Currency Note Act. The Treasury mints coins in several denominations, including £1, £2, £5, 1 penny, 2 pence, 5 pence, 10 pence, 20 pence, and 50 pence. It produces banknotes in denominations of £5, £10, £20, £50, and £100.

Notes and coins in circulation bear British names but have distinct designs. Gibraltar alone accepts them. The GIP is not accepted in the U.K. but may be exchanged for British pound sterling notes at 1:1.

Gibraltar accepts British coins and notes from the Bank of England as legal money. Most Gibraltar retailers accept the euro unofficially (the Royal Gibraltar Post Office does not).

Gibraltar and the U.K. decimalized their currency in 1971, replacing the previous system of 1 pound = 20 shillings = 240 pence with 1 pound = 100 new pence.

Gibraltar’s Economy

Gibraltar, situated on the southern Iberian Peninsula, is a British overseas territory.

The British military has long controlled Gibraltar’s economy, with its naval dockyard as the hub of activities. Military and commercial activity have fallen from 60% in 1984 to 7%.

Gibraltar’s economy relies on financial services, online gambling, navigation, and tourism. The nation has a major Mediterranean Sea port, with bunkering as a critical sector.

Gibraltar Pound History

Gibraltar had a complex monetary system from 1825 to 1872, based on the Spanish real de plata and including British, Spanish, and Gibraltarian coins. The Spanish real was associated with the pound at a rate of one Spanish dollar to four shillings, or four pence (equal to 21.67 pence today). By 1872, Spanish money had become the sole legal tender in the nation.

In 1898, the Spanish-American War caused a significant decline in the value of the Spanish peso. The pound became the official coin of the realm, initially in British coins and banknotes, but Spanish money remained in circulation.

Gibraltar officially launched the Gibraltar pound in 1927 and issued its banknotes and coins in 1988. The 1, 2, 5, 10, 20, 50 pence, and 1 pound coins have unique designs and the country’s name.

The Gibraltar government took over currency design, printing, and manufacture from the British government in 2011.

The Gibraltar government produced a £100 banknote in 2016. The note, featuring Gibraltar’s first Chief Minister and architect of self-rule, Sir Joshua Hassan, was the first to use holographic foil on Safeguard polymer substrate.

Gibraltar Currency Issues

The introduction of £10, £20, and £50 notes in 1975 and 1986, respectively, and 1995 and 2010–11 saw new notes.

Two-pound coins debuted in 1999. Since its debut, the £2 coin has had a different design each year, illustrating the 12 Labors of Hercules.

Gibraltar’s government released a new coin series in 2004 to mark the tercentenary of British Gibraltar (1704–2004).

An inscription on a 2010 £5 coin reads “Elizabeth II, Queen of Gibraltar.”

Conclusion

• The official currency of Gibraltar is the Gibraltar pound (GIP).
• GIP parity with the British pound
• Only Gibraltar pounds and pence coins are lawful tender.
• Gibraltar issued banknotes in 1927 and coins in 1988.
• The Spanish real and British pound was Gibraltar’s currencies before the GIP.