Gibraltar - 10 Gibraltar Pounds - P-26a - 1995 dated Foreign Paper Money

10 Pounds, P-26a. Security strip! Front and back shown.

The history of the Gibraltar pound mirrors the territory’s transformation from a multicultural trading hub to a British stronghold. Throughout the 19th century, Gibraltar operated with a chaotic mix of British, Spanish, and local coins, with the Spanish dollar serving as the primary medium of exchange. Although the British pound was declared the official unit of account in 1825, Spanish currency remained so dominant that it was declared the sole legal tender in 1872. However, this changed abruptly in 1898 when the Spanish-American War caused the Spanish peseta to collapse, prompting the colonial government to establish the British pound as the sole official currency to maintain economic stability.

Modern Gibraltar currency began to take its unique form in the 20th century, starting with the first local banknotes issued in 1927. Following the United Kingdom’s lead, Gibraltar decimalized its currency in 1971, replacing the old shillings and pence system with a 100-pence pound. While the territory began minting its own distinctive coins in 1988—often featuring local landmarks like the Rock or wildlife like the Barbary macaques—the Gibraltar pound (GIP) remains strictly pegged at a 1:1 ratio with the British pound. Today, it serves as a dual symbol of local sovereignty and its enduring constitutional link to the United Kingdom.