What Is the Gibraltar Pound (GIP)?

The Gibraltar pound (GIP) serves as the official currency of Gibraltar, a British overseas territory. This currency is denoted as GIP and is pegged at a one-to-one ratio with the British pound sterling, symbolizing a fixed exchange rate.

Key Points to Remember:

• The Gibraltar pound (GIP) is the designated currency of Gibraltar.
• The GIP maintains parity with the British pound.
• Coins and notes denominated in Gibraltar pounds are only legally accepted within Gibraltar.
• Gibraltar initiated the issuance of its banknotes in 1927 and coins in 1988, replacing preceding currencies.
• Historically, Gibraltar utilized the Spanish real and subsequently the British pound as its official currency.

Understanding the Gibraltar Pound (GIP)

The Gibraltar pound is regulated and circulated by the Gibraltar government through the provisions of the 1934 Currency Note Act. Various denominations of coins, including £1, £2, £5, 1p, 2p, 5p, 10p, 20p, and 50p, are minted. Additionally, banknotes valued at £5, £10, £20, £50, and £100 are produced.

Even though coins and notes in Gibraltar are named in British terms, their designs are distinct. These currencies are solely valid within Gibraltar and are not recognized in the United Kingdom, although they can be exchanged for British pounds at a one-to-one equivalence.

While British currency issued by the Bank of England holds legal tender status in Gibraltar, many local retail establishments unofficially accept the euro, a common currency in neighboring regions.

Gibraltar transitioned to decimalized currency in 1971 in unison with the UK, abandoning the traditional pound-shillings-pence system in favor of pounds and pence.

Gibraltar’s Economy

Situated in the southern region of the Iberian Peninsula, Gibraltar stands as an official British overseas territory.

Historically, Gibraltar’s economy was dominated by British military activities, notably its naval dockyard, but these have dwindled over the years from 60% in 1984 to approximately 7% presently.

The contemporary Gibraltarian economy focuses on financial services, online gaming, maritime navigation, and tourism. Gibraltar preserves its significance as a crucial Mediterranean port, with bunkering representing a notable industry.

History of the Gibraltar Pound

Between 1825 and 1872, Gibraltar encountered a complex currency scenario involving Spanish, British, and Gibraltarian coins based on the Spanish real de plata. In 1872, the Spanish currency became the exclusive legal tender.

In response to the 1898 Spanish–American War, the pound was established as the official currency, and the Gibraltar pound was formally introduced in 1927, culminating in the issuance of distinct coins in 1988.

Gibraltar assumed full responsibility for the design and production of its banknotes in 2011, excluding prior British oversight.

In 2016, Gibraltar unveiled a novel £100 banknote featuring Sir Joshua Hassan, a key figure in Gibraltar’s governance, with innovative security features.

Gibraltar Currency Developments

Notable currency milestones in Gibraltar include the introduction of £10 and £20 notes in 1975 and £50 notes in 1986, and subsequent note series launched in 1995 and 2010-11.

A £2 coin series, showcasing the 12 Labors of Hercules, commenced in 1999 with each year debuting a new design.

In commemoration of the tercentenary of British Gibraltar in 2004, Gibraltar minted new coins, alongside issuing a special “Elizabeth II • Queen of Gibraltar” £5 coin in 2010.