1 Pound – Saint Helena and Ascension

In 2022, the currency situation in Saint Helena and Ascension remained formally unchanged, with the Saint Helena pound (SHP) as the official currency. Pegged at par to the British pound sterling (GBP), the SHP is issued by the Government of Saint Helena and is not legal tender in the United Kingdom. This fixed peg provides stability but also directly ties the island's monetary policy and import costs to the economic conditions in Britain. Notably, British pound sterling coins and banknotes also circulate freely and are accepted interchangeably on the islands, though the distinct Saint Helena banknotes and coins are a point of local identity.

However, the year highlighted ongoing practical challenges. The islands' remote geography and small, import-dependent economies meant that access to physical cash, particularly the local SHP, was often limited. Banking services were restricted, with no high-street commercial banks operating, leaving the government-run Saint Helena Bank as the primary financial institution. This reliance, coupled with the logistical difficulties of transporting currency over 4,000 miles from the UK, occasionally led to shortages of specific denominations, affecting both residents and the important but still-recovering tourist sector post-pandemic.

Looking forward, 2022 underscored a gradual shift towards digital transactions, albeit from a very low base. Efforts to improve financial inclusion and reduce cash dependency were discussed, but infrastructure limitations posed significant hurdles. The fundamental currency structure—the sterling peg—remained uncontested, as it provides crucial stability. Yet, the operational realities of managing a physical currency in such a remote location continued to drive conversations about modernizing the financial system while maintaining economic security for the islanders.