5 Pence – Gibraltar

In 1990, Gibraltar's currency situation was defined by a unique and practical dual-currency system, with both the Gibraltar pound (GIP) and the British pound sterling (GBP) circulating as legal tender at par value (1:1). The Gibraltar pound, issued by the Government of Gibraltar, was not a major international currency but served as the local note issue, featuring distinct designs of local significance. Sterling coins and Bank of England notes were equally accepted in everyday transactions, creating a seamless monetary environment for residents and businesses.

This arrangement was underpinned by Gibraltar's constitutional status as a British Overseas Territory. The local currency was fully backed by sterling reserves held at the Bank of England, ensuring absolute confidence in its parity. Economically, this peg provided stability, anchoring Gibraltar's economy—then heavily reliant on the UK in trade, tourism, and its role as a strategic port—to a major and stable international currency. It effectively outsourced monetary policy to the Bank of England, shielding the territory from exchange rate volatility.

The system in 1990 reflected Gibraltar's historical and economic ties to the United Kingdom, while also asserting a degree of symbolic autonomy through its own banknotes. There was little impetus for change, as the arrangement provided both the stability of sterling and the convenience of a local note issue. This pragmatic dual-system remained a settled feature of Gibraltar's financial landscape throughout the decade and beyond.