½ Penny – Southern Rhodesia

In 1954, the currency situation in Southern Rhodesia was one of formal integration within the broader Sterling Area and the specific monetary system of the Federation of Rhodesia and Nyasaland, established just the year prior. The territory used the Southern Rhodesian pound, which was pegged at par with the British pound sterling. This meant its value was directly guaranteed by the Bank of England, and reserves were held in London, ensuring stability and free convertibility with sterling. This arrangement facilitated trade and capital flows with Britain, the dominant economic partner, and reflected the colony's deep economic and political ties to the United Kingdom.

The creation of the Central African Federation in 1953 introduced a new layer of monetary coordination, though a unified central bank would not be established until 1956. In 1954, the currency remained under the de facto management of the Southern Rhodesia Currency Board, but with an eye toward federal financial integration. The system was effectively a currency board, limiting local monetary policy autonomy but providing low inflation and credibility. Economically, the period was one of post-war boom, driven by high prices for tobacco and mineral exports, which bolstered the currency's backing and supported public investment.

However, this stable picture existed within the context of the settler-colonial economy. The benefits of this sound currency and economic growth were overwhelmingly concentrated within the white minority population and the expanding commercial agricultural and mining sectors. The system was designed to serve the interests of export-oriented settler capitalism and integration with global (primarily British) markets, rather than fostering broad-based internal development for the African majority. This financial stability, therefore, underpinned and reinforced the profound socio-economic inequalities that characterized the colony.