5 Pounds (Duke of Wellington) – Guernsey

In 2019, Guernsey's currency situation was characterised by its long-standing and stable framework, with the island operating its own distinct pound, the Guernsey Pound (GGP), which was pegged at par with the British Pound Sterling (GBP). This meant that Guernsey issued its own banknotes and coins, which were legal tender only on the island, while Sterling circulated interchangeably locally. The system was underpinned by the requirement for the States of Guernsey to hold sufficient Sterling reserves to fully back its own note issue, ensuring confidence and monetary stability. This arrangement provided the autonomy to produce currency with local imagery while being sheltered from direct foreign exchange fluctuations through the fixed link to Sterling.

The year proceeded without significant monetary policy upheaval, as Guernsey, not being part of the United Kingdom or the European Union, did not have a central bank and did not set independent interest rates. However, the overarching shadow of Brexit dominated the economic landscape. While the currency peg itself was not in question, there were concerns about potential practical disruptions to cash flow and financial services, as well as the longer-term economic impact on the island's key finance industry, which could indirectly affect currency stability. The States of Guernsey worked to ensure robust liquidity and contingency plans were in place.

Overall, 2019 represented a period of continuity for Guernsey's currency, with the established system functioning smoothly. The primary focus for authorities was less on the mechanics of the peg and more on safeguarding the island's economy from external shocks, particularly the impending departure of the UK from the EU. The stability of the Guernsey Pound remained a cornerstone, providing a predictable monetary environment amid wider geopolitical uncertainty.