The Gibraltar Pound (GIP) is the official currency of Gibraltar, a British Overseas Territory located at the southern tip of the Iberian Peninsula.
The Gibraltar Pound is pegged to the British Pound Sterling (GBP) at par, meaning that one Gibraltar Pound is equal to one British Pound Sterling.
The Government of Gibraltar issues Gibraltar Pounds, and the currency is managed by the Gibraltar Financial Services Commission.
Exchange Rate System
As the Gibraltar Pound is pegged to the British Pound Sterling, its value is directly tied to the value of the British Pound.
The exchange rate between the Gibraltar Pound and other currencies is derived from the exchange rate between the British Pound and those currencies.
Subdivisions and Denominations
The Gibraltar Pound is subdivided into 100 smaller units called pence, just like the British Pound Sterling.
Coins are issued in denominations of 1, 2, 5, 10, 20, and 50 pence, as well as 1 and 2 Pound coins.
Banknotes are available in denominations of 5, 10, 20, and 50 Pounds.
Economy and Currency Acceptance
Gibraltar’s economy is primarily based on tourism, financial services, and shipping.
The British Pound Sterling is widely accepted in Gibraltar, and the Gibraltar Pound is accepted in some establishments in the United Kingdom, particularly in areas close to Gibraltar.
However, the Gibraltar Pound is not legal tender in the UK, so acceptance is not guaranteed.
Summary
In summary, the Gibraltar Pound is the official currency of Gibraltar and is pegged to the British Pound Sterling at par.
The currency is managed by the Gibraltar Financial Services Commission and is subdivided into pence, with various banknote and coin denominations.
Gibraltar’s economy is primarily based on tourism, financial services, and shipping, and while the British Pound Sterling is widely accepted in Gibraltar, the Gibraltar Pound may be accepted in some establishments in the UK, particularly in areas close to Gibraltar.