1 Pound – Jersey

In 1988, the currency situation in Jersey was characterised by a stable and long-standing alignment with the United Kingdom, but with a unique local dimension. As a Crown Dependency, Jersey was not part of the UK but had its monetary system pegged to sterling. The island issued its own banknotes and coins, denominated in pounds sterling, which circulated alongside Bank of England notes and UK coinage. This system provided economic stability and facilitated seamless trade with Jersey's largest partner, while also symbolising its distinct political identity.

The period saw no major currency crisis or devaluation, as Jersey's economy was relatively robust, benefiting from a growing finance sector and tourism. However, the context of the late 1980s was one of high interest rates and inflationary pressures in the UK, driven by the policies of the Thatcher government. These conditions indirectly affected Jersey, influencing mortgage rates and the cost of imports. The island's authorities maintained a cautious approach, managing the money supply for local needs while relying on the UK's broader monetary policy to anchor value.

Ultimately, the 1988 currency situation underscored Jersey's hybrid status: a dependency with significant fiscal autonomy, yet fundamentally tied to the economic fortunes of the British pound. The system functioned smoothly, with the familiar portrait of Queen Elizabeth II on locally designed notes reinforcing the constitutional link. This arrangement, largely unchanged for decades, provided the predictability required for its burgeoning offshore finance centre, which was becoming an increasingly dominant pillar of the Jersey economy.