1 Butut – The Gambia

In 1971, The Gambia's currency situation was defined by its recent independence and its continued economic ties to the United Kingdom. Having gained sovereignty in 1965, the nation initially used the British West African pound and then the Gambian pound, which remained pegged at par to the British pound sterling. This arrangement meant The Gambia's monetary policy and currency value were effectively anchored to the UK's economy, a system that provided stability but offered little independent control over monetary affairs.

This dependency was formally addressed on July 1, 1971, with a significant monetary reform: the introduction of a new decimal currency, the dalasi. Replacing the Gambian pound at a rate of 1 pound = 5 dalasi (with 1 dalasi = 100 bututs), the change was more than a simple redenomination. It was a symbolic assertion of national identity and economic self-determination. The new banknotes and coins featured distinctly Gambian symbols and figures, moving away from British iconography.

Despite this move toward a sovereign monetary system, The Gambia remained within the sterling area, and the dalasi maintained a fixed peg to the pound sterling. Therefore, while the currency had a new name and form, its value was still directly influenced by the British economy and the fluctuations of sterling. This hybrid position in 1971—a national currency operating within a colonial-era financial framework—reflected the broader challenges of a newly independent state navigating the practicalities of economic autonomy while preserving crucial external stability.