5 Pounds – Isle of Man

In 2021, the Isle of Man maintained its long-standing and stable currency arrangement, operating a currency board system pegged at par to the British pound sterling (£). This meant the Manx government issued its own distinct notes and coins—featuring unique designs of local significance—which circulated alongside UK-issued sterling currency. The Isle of Man pound (IMP) was not a separate, freely floating currency but was fully backed by sterling reserves, ensuring a 1:1 exchangeability. This system provided the benefits of economic stability and seamless trade with its largest partner, the United Kingdom, while retaining a symbol of national identity through its coinage and banknotes.

The year saw no significant changes to this core monetary framework, but it operated within the broader economic context of the COVID-19 pandemic and the post-Brexit landscape. While the currency peg remained unwavering, these external factors influenced the island's economy. The pandemic impacted key sectors like tourism and international finance, while the UK's final departure from the EU single market and customs union at the start of 2021 required the Isle of Man to adapt to new trade and customs procedures, given its constitutional relationship with the UK.

Overall, 2021 was a year of continuity for the Manx currency itself, with its peg to sterling providing a bedrock of monetary stability. The government continued to issue new commemorative coins, as is customary, but the fundamental principles of the currency board system were unchanged. The primary economic challenges stemmed not from currency policy but from navigating the ongoing pandemic and the adjusted relationship with the European Union through the UK's post-Brexit agreements.