5 Pounds (Queen Elizabeth I) – Gibraltar

In 2003, Gibraltar’s currency situation was defined by its unique political status and its deep economic integration with the United Kingdom. As a British Overseas Territory, its official currency was (and remains) the Gibraltar pound (GIP), issued by the Government of Gibraltar under the terms of the 1934 Currency Notes Act. This currency was pegged at par with the British pound sterling (GBP), which also circulated freely and was accepted as legal tender within the territory. This dual circulation created a stable and familiar monetary environment for local commerce and financial services, a key sector of Gibraltar's economy.

The year 2003, however, fell within a significant transitional period following the introduction of euro banknotes and coins in the eurozone in 2002. While the UK itself had opted out of the euro, Gibraltar's close physical and economic ties with neighbouring Spain—a euro member—presented a practical challenge. Many businesses, particularly in the retail and hospitality sectors facing daily cross-border traffic, readily accepted euros, but often at exchange rates less favourable than the official rate. This created a de facto dual-currency economy at the point of sale, with sterling dominant for residents and euros commonly used by many visitors.

Ultimately, the Gibraltar government maintained a firm commitment to sterling as the cornerstone of monetary policy, viewing it as essential to constitutional links with Britain and financial stability. There was no serious political move to adopt the euro, as this would have required the UK itself to do so first. Therefore, the 2003 landscape was one of pragmatic adaptation on the ground, with widespread euro acceptance for convenience, underpinned by the formal and unchanging sterling peg that guaranteed macroeconomic stability and aligned Gibraltar’s banking and finance sector directly with the City of London.