2 Sovereigns – Gibraltar

In 2021, Gibraltar's currency situation remained defined by its unique constitutional position and its deep economic integration with the United Kingdom. As a British Overseas Territory, its official currency is the Gibraltar pound (GIP), which is issued by the Government of Gibraltar and pegged at par value to the British pound sterling (GBP). Both currencies circulate interchangeably within the territory, with sterling being universally accepted for all transactions. This arrangement provides monetary stability and is a cornerstone of Gibraltar's financial services sector, which forms a significant part of its economy.

The year 2021 was particularly significant as it was the first full year following the end of the Brexit transition period. Gibraltar was not part of the UK-EU Trade and Cooperation Agreement, leading to separate negotiations for a UK-EU treaty regarding The Rock. A key concern was maintaining fluid border movement with Spain, but currency was not a central point of contention. The Gibraltar pound's peg to sterling remained undisturbed, and there was no push to adopt the euro, despite the territory's geographical proximity to the Eurozone. The focus was instead on mitigating the economic impact of the pandemic and securing a post-Brexit framework.

Furthermore, 2021 saw the continued growth of digital and card payments, a global trend accelerated by COVID-19, though cash, particularly in the form of sterling, remained widely used. The Gibraltar Financial Services Commission continued to oversee a regime that includes several licensed digital and cryptocurrency firms, reflecting the territory's move towards modern financial technologies. Ultimately, the currency landscape in 2021 was one of stability, with the fixed peg to sterling providing a reliable anchor amid the uncertainties of Brexit implementation and pandemic recovery.