1 Crown – Isle of Man

In 2005, the Isle of Man's currency situation was defined by its unique constitutional position as a British Crown Dependency, operating a distinct monetary system while maintaining a close and practical link with the United Kingdom. The official currency was (and remains) the Manx pound (IMP), which is issued by the Isle of Man Government Treasury and the island's two licensed commercial banks. Crucially, this local currency was pegged at par with sterling (GBP), meaning the two were effectively interchangeable for practical purposes on the island, though Manx notes and coins were not legal tender in the UK.

The year saw the continued circulation of a full set of Manx banknotes and coins featuring distinctive local imagery, such as the Manx Loaghtan sheep and the Three Legs of Mann emblem. However, sterling notes from UK banks were also universally accepted, creating a dual-circulation environment. This system provided the Isle of Man with a visible symbol of its political autonomy and a source of seigniorage revenue, while ensuring monetary stability and seamless economic integration with its largest trading partner. The island had no independent monetary policy, with interest rates effectively set by the Bank of England.

This stable framework in 5 supported the Isle of Man's thriving offshore financial services sector and general economy. There were no significant currency crises or debates about the peg during this period, as the arrangement was widely seen as optimal for a small, open economy. The primary operational focus for authorities was on maintaining public confidence in the local currency and ensuring robust banking regulation, rather than on any fundamental reform of the currency link, which was considered a cornerstone of economic stability.