2 Crowns – Isle of Man

The Isle of Man, a self-governing British Crown Dependency, maintained a stable and integrated currency system throughout 2020. Its official currency is the Manx pound (IMP), which is not a separate, freely floating currency but is pegged at par with, and is interchangeable with, the Pound Sterling (GBP). This means Bank of England notes and UK coinage circulate alongside distinct Manx-issued notes and coins, all holding equal value on the island. The island's government and its financial regulator, the Isle of Man Financial Services Authority, continued to uphold this long-standing arrangement, which provides monetary stability and certainty for its key financial services and e-gaming sectors.

The year 2020 was dominated by the economic impact of the COVID-19 pandemic, which presented significant challenges to the Isle of Man's economy. While the currency peg itself remained unquestioned, the broader economic shock from lockdowns and global disruption affected the island's revenue and prompted substantial government spending on support measures. Consequently, the island's fiscal position became a more pressing concern than its monetary arrangements. The stability of the Manx pound, tied to Sterling, was a crucial anchor during this period of uncertainty, ensuring no additional monetary volatility compounded the economic difficulties.

Looking forward from 2020, there were no indications of any change to the fundamental currency policy. The peg to Sterling is seen as essential for economic confidence and the functioning of the island's banking sector. However, the year did highlight the island's economic interdependence with the UK and the importance of its domestic fiscal resilience. The long-discussed potential for a digital Manx pound or central bank digital currency (CBDC) remained a speculative future consideration rather than an active 2020 policy, with authorities focused squarely on navigating the immediate public health and economic crisis.