What is the Gibraltar pound (GIP)?
The Gibraltar pound (ISO code: GIP) is the official currency of Gibraltar, a British Overseas Territory at the southern tip of the Iberian Peninsula. It is issued by the Government of Gibraltar and is pegged at par to the British pound sterling (GBP) — one GIP = one GBP — at a fixed exchange rate.
Key takeaways
– GIP is the official currency of Gibraltar and is pegged 1:1 to the British pound sterling.
– Gibraltar issues its own banknotes and coins with unique designs; these are legal tender only in Gibraltar.
– Bank of England (British) notes and coins are accepted and are legal tender in Gibraltar; however, GIP is not recognized as legal tender in the United Kingdom.
– The economy that uses GIP relies on financial services, online gaming, shipping/bunkering and tourism rather than its historical military role.
(Source: Investopedia)
Understanding the Gibraltar pound: denominations and appearance
– Coins: 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. The £2 coin was introduced in 1999 and has had annual designs (e.g., themed “Labours of Hercules”).
– Banknotes: £5, £10, £20, £50 and (since 2016) £100. Gibraltar’s notes use British-style denominations and names but carry Gibraltar-specific imagery and security features (the 2016 £100 polymer note included a holographic foil on Safeguard polymer substrate).
– Design & issuance: Notes and coins are produced under the authority of the Government of Gibraltar (Currency Note Act 1934 and subsequent arrangements). Although they mirror GBP denominations, they are visually distinct and stamped with Gibraltar markings.
(Source: Investopedia; Government/De La Rue releases)
Legal-tender status and practical acceptance
– In Gibraltar: GIP is the official legal tender. British (Bank of England) notes and coins are also accepted and circulate. Many retailers in Gibraltar also accept the euro informally, though the Royal Gibraltar Post Office does not.
– In the United Kingdom: GIP is not legal tender and is generally not accepted in retail transactions; it can, however, be exchanged at banks or currency exchanges for GBP at par.
– Exchangeability: Because of the 1:1 peg, Gibraltar banknotes and coins can be exchanged for British pounds (often without charge) at banks and official currency exchanges, but acceptance and policies vary by institution.
(Source: Investopedia)
Brief history (highlights)
– 1825–1872: Gibraltar used a mix of British, Spanish and local coinage tied to the Spanish real/Spanish dollar with a complicated conversion to the pound.
– 1872: Spanish currency became sole legal tender for a time.
– 1898: After the Spanish–American War depressed the Spanish currency, the pound reasserted itself and British currency circulated.
– 1927: Gibraltar began issuing its own banknotes (the “birth” of the Gibraltar pound).
– 1971: Decimalisation aligned Gibraltar with UK currency reform (1 pound = 100 pence).
– 1988: Gibraltar began minting its own coins.
– 1999–2016: Introduction of £2 coin (1999), new coin series for the 300th anniversary (2004), and new polymer £100 note (2016).
(Source: Investopedia; De La Rue announcement)
Gibraltar’s economy and the role of currency
– Gibraltar’s economy historically centered on the military and the naval dockyard. Over recent decades the military’s share of economic activity declined substantially.
– Current major sectors: financial services, online gaming, shipping (bunkering), tourism and port services. A stable, GBP-pegged currency supports financial-services activity and cross-border business with the UK.
(Source: Investopedia)
Common currency issues and considerations
– Acceptance outside Gibraltar: GIP is often refused outside Gibraltar — carry GBP or get GBP before traveling to the UK.
– Cash vs cards: Credit/debit cards are widely accepted in Gibraltar; ATMs dispense pounds (GIP or GBP depending on bank/ATM). Check with your card issuer about fees and whether withdrawals will be in GIP or GBP.
– Exchange rates and fees: Although pegged 1:1 to GBP, currency exchanges and banks may charge commissions or offer poor spreads for converting GIP outside Gibraltar. Always compare providers.
– Collectability and commemoratives: Gibraltar issues commemorative coins and special-note designs which may have collector value beyond face value.
(Source: Investopedia)
Practical steps — For travelers to Gibraltar
1. Bring widely accepted currency: carry GBP (British pound sterling) or a major credit card. GBP will be accepted everywhere in Gibraltar; GIP will not be accepted in the UK.
2. If you get GIP cash while in Gibraltar and later travel to the UK or elsewhere, convert remaining GIP back to GBP before leaving (banks or currency exchange kiosks in Gibraltar). Expect variable commission from non-official outlets.
3. Use cards where possible: card payments avoid handling unusual banknotes. Confirm with your bank about foreign transaction and ATM fees.
4. ATMs: use ATMs in Gibraltar to withdraw pounds — check whether the ATM dispenses GIP or GBP and the exchange/fee terms.
5. Accepting euros: some shops accept euros informally; request GBP or GIP when possible to avoid poor rates and rounding.
6. Keep receipts: If you need to exchange GIP later, receipts can help prove where/when you obtained the currency.
(Source: Investopedia)
Practical steps — For businesses handling GIP
1. Pricing: if you trade cross-border with the UK, keep prices and accounting in GBP or make explicit note of which currency is quoted (GIP vs GBP).
2. Banking: confirm with your bank whether you can deposit GIP notes/coins and how they treat them (some UK banks do not accept GIP or may treat them like foreign currency).
3. Foreign exchange management: because GIP is pegged to GBP, currency risk vs GBP is minimal; but if you deal with euros or other currencies, use hedging and FX management as usual.
4. Accepting payment: clarify acceptance of GIP, GBP and euros at point of sale and set clear change-giving rules to avoid disputes.
5. Reporting & tax: record currency type used in transactions; consult local tax/accounting rules for treatment of foreign cash when operating cross-border.
(Source: Investopedia)
Practical steps — For collectors and investors
1. Identify issues: look for commemorative coins, limited mintage coins, and special banknotes (e.g., the 2016 £100 polymer issue).
2. Condition & authentication: preserve coins/notes in good condition; use reputable dealers and request provenance or certificates for higher-value pieces.
3. Pricing & liquidity: collector demand determines premiums; remember face value may be less than collector value, but some items trade above face.
4. Storage & insurance: store valuable pieces securely and insure as appropriate.
5. Research official minting/printing announcements for release dates and mintage numbers (Government of Gibraltar and professional manufacturers like De La Rue publish this information).
(Source: De La Rue; Gibraltar government announcements)
Where to find official or up-to-date information
– Government of Gibraltar — official notices on currency issues, coin and banknote releases, and legal tender status.
– Investopedia and major financial references for summaries and context.
– De La Rue or other currency printers for technical details on note substrate and security features.
(Use official Gibraltar government sources for legal/tax questions and the issuing authority for the latest releases.)
Further reading and sources
– Investopedia — Gibraltar pound (GIP). https://www.investopedia.com/terms/g/gip.asp
– HM Government of Gibraltar and press releases (e.g., De La Rue release re: £100 polymer banknote).
(Use official Gibraltar government pages and the currency printer’s releases for the most current technical and legal details.)
If you want, I can:
– Summarize carry/exchange recommendations for a specific trip length and origin country; or
– Provide a short checklist for businesses accepting GIP; or
– Pull together a timeline of Gibraltar currency issues with images and mintage numbers for collectors. Which would you prefer?