Gibraltar Pound

Overview

Gibraltar is a British territory located at the southern end of the Iberian Peninsula, at the strategic entrance to the Mediterranean Sea from the Atlantic Ocean. The territory is a mountainous peninsula with an area of 6,843 km sq, and shares a northern border with Andalusia, Spain. The Rock of Gibraltar is an important reference point in the region.

Gibraltar's currency is the Gibraltar Pound, issued by the Government of Gibraltar under the terms of the 1934 Act Currency Notes. These notes are legal tender in Gibraltar, in addition to the notes of the Bank of England. Coins in circulation use British names, but have different designs. Most retail stores in Gibraltar unofficially accept the Euro, although some phones and the Royal Gibraltar Post Office do not.

Economy

• The British military traditionally dominated the economy of Gibraltar, with its naval dockyard providing the bulk of economic activity. Military enterprise has declined over the last twenty years and is estimated to account for only 7% of the local economy, compared with more than 60% in 1984.
• Today, Gibraltar's economy is dominated by four major sectors - financial services, online gaming, navigation and tourism (including sales to visitors).

History

• The Real (Spanish “real de plata”) was the official currency of Gibraltar until 1825.
• From 1825, the Real continued to circulate alongside the British and Spanish currencies, tied to the Pound at the rate of 1 Spanish Dollar to 4 shillings 4 pence (equivalent to 21.67 pence today). In 1872 the Spanish currency became the sole legal tender in Gibraltar.
• In 1898, the Spanish-American War caused the Spanish Peseta to drop alarmingly, so the Gibraltar Pound was introduced as the sole legal tender in the colony, initially in the form of British coins and banknotes.
• In 1988, Gibraltar Pound 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 corresponding British coins
• 2-pound coins were introduced in 1999, and a new 5-pound coin was issued in 2010 with the inscription "Elizabeth II • Queen of Gibraltar".