1 Pound – Jersey

In 1987, the currency situation in Jersey was defined by its long-standing and pragmatic relationship with the British pound sterling. The island, as a British Crown Dependency with its own government and fiscal autonomy, issued its own distinctive banknotes and coins. However, these were not a separate currency but local issues of sterling, pegged at par with the UK pound. This meant Jersey currency and UK currency were legally interchangeable and accepted on the island, providing stability and simplifying trade and tourism with its largest partner.

The period was one of consolidation rather than dramatic change. The States of Jersey had taken full control of its note issue from the commercial banks in 1964, and by 1987, its notes featured increasingly modern designs and security features, though they still bore the portrait of Queen Elizabeth II. Economically, the island was developing its finance sector, and the stable, familiar sterling link provided a crucial foundation of monetary credibility for this growth, avoiding the uncertainties of a floating independent currency.

There was no active debate about abandoning the sterling link in 1987; the arrangement was overwhelmingly seen as advantageous. The key considerations were maintaining this stability while asserting a degree of national identity through its own coinage and note designs. Therefore, the "situation" was characterised by a successful and managed dependency on UK monetary policy, with Jersey exercising its privilege to produce its own tangible currency within that framework, a system that remained firmly in place.