5 Pence – Saint Helena and Ascension

In 1998, the currency situation on the islands of Saint Helena and Ascension was unified but complex, as both territories used the Saint Helena pound (SHP) as their official currency. This currency was, and remains, pegged at par to the British pound sterling (GBP), meaning one SHP equaled one GBP. However, the SHP was a local issue, with its own distinct banknotes and coins, and was not legal tender in the United Kingdom itself. Sterling cash was often accepted on the islands, but Saint Helena notes were not usable in Britain, creating a one-way currency flow.

The economy of Saint Helena in this period was almost entirely dependent on British financial aid, with limited economic activity from fishing, a small coffee export industry, and public sector work. The fixed parity with sterling provided crucial monetary stability and simplified trade with the UK, the islands' main source of imports and funding. On Ascension Island, the economy was dominated by the operations of the British and American military and communications facilities, with the BBC's Atlantic Relay Station being a significant employer. Here, sterling and US dollars also circulated informally alongside the official SHP.

A key characteristic of the 1998 situation was the physical scarcity of cash, particularly on Saint Helena. With no commercial banks on the island at the time, financial services were provided by a government savings bank, and the supply of currency was physically shipped from the UK. This logistical constraint, coupled with the territory's isolation, meant cash management was a persistent administrative challenge. The system underscored the islands' profound economic dependency and geographical isolation, with a currency that was stable in value but limited in circulation and utility beyond its shores.