5 Pence – Jersey

In 1990, Jersey's currency situation was defined by its unique and long-standing dual-currency system, a legacy of its historical ties. The island officially used the Jersey pound, which was issued by the States of Jersey and circulated alongside Bank of England notes. Crucially, these currencies were at parity and were both legal tender on the island, creating a practical environment where notes from both issuers were used interchangeably in daily transactions.

This system functioned smoothly due to a strict adherence to a one-to-one peg with sterling, as Jersey was (and remains) within the "sterling area." The island's government maintained substantial sterling reserves to fully back its own note issue, ensuring absolute confidence in its currency. There were no foreign exchange controls between Jersey and the United Kingdom, allowing for the free movement of capital. Economically, the period was stable, with the island's burgeoning finance sector benefiting from this predictable and secure monetary framework.

Therefore, the background for 1990 shows no currency crisis or significant change; instead, it was a period of consolidated stability. The key features were the successful operation of the dual circulation, the unwavering peg to sterling, and the backing of the local issue with reserves. This arrangement reinforced Jersey's economic stability and its close constitutional relationship with the UK, while also symbolising its domestic autonomy in monetary affairs.