5 Pounds – Gibraltar

In 2007, Gibraltar's currency situation was defined by its unique political status as a British Overseas Territory and its practical economic integration with neighbouring Spain. The legal tender was, and remains, the Gibraltar pound (GIP), issued by the Government of Gibraltar and pegged at par with the British pound sterling (GBP). Sterling notes and coins also circulated freely and were accepted interchangeably with local currency, reflecting the territory's constitutional link to the United Kingdom. However, the Gibraltar pound was not legal tender in the UK, creating a one-sided currency union.

A significant feature of the daily monetary environment was the widespread acceptance of the euro, particularly in retail and hospitality sectors. This was a pragmatic response to Gibraltar's heavy dependence on cross-border trade and tourism from Spain, with thousands of Spanish workers and visitors entering the territory daily. Many businesses displayed prices in both currencies, and change was often given in euros if that was the tender used for payment, though the official government functions and banking system operated primarily in Gibraltar pounds and sterling.

The period was one of stability for the pegged currency, but not without underlying tensions. The dual-currency reality highlighted Gibraltar's economic interdependence with the European Union (via Spain) alongside its political ties to Britain. This arrangement functioned efficiently for commerce, though it occasionally led to consumer confusion regarding exchange rates applied by individual vendors. The system in place in 2007 thus embodied Gibraltar's hybrid identity: a sterling-based economy with a strong euro facade, facilitating its role as a regional hub.