5 Sovereigns – Gibraltar

In 2019, Gibraltar's currency situation remained defined by its unique constitutional position and its close economic ties with the United Kingdom and the European Union. As a British Overseas Territory, its official currency is the Gibraltar pound (GIP), which is issued by the Government of Gibraltar and is pegged at par with the British pound sterling (GBP). Sterling also circulates freely and is accepted as legal tender, creating a de facto dual-currency environment where both notes are used interchangeably in daily transactions, though Gibraltar pound notes are generally not accepted in the UK.

The year was dominated by the looming shadow of Brexit, set to occur on 31 January 2020. Gibraltar, which had been part of the EU alongside the UK under a special arrangement, faced significant uncertainty regarding the future of its border with Spain, its access to the single market, and financial services passporting rights. This uncertainty had direct implications for its currency, as any severe economic disruption could have pressured the pegged exchange rate. However, the peg itself was not in question, being a fundamental pillar of monetary stability and a symbol of political ties to Britain.

Furthermore, 2019 saw ongoing but slow progress in modernising Gibraltar's currency. For years, the territory had relied on paper notes, with plans for a new series of polymer banknotes announced in 2017. The rollout of these more secure and durable notes continued gradually into 2019, reflecting a long-term commitment to maintaining a distinct, yet stable, national currency within the Sterling Zone. Thus, the currency landscape was one of underlying stability in its framework, but set against a backdrop of profound political and economic negotiations that would shape its future context.