Historical Sketch

The Channel Islands Guernsey and Jersey came under the rule of the Duke of Normandy in the 10th century. After the Norman conquest of England, they remained a Crown estate but were never integrated into England nor the United Kingdom. During the Second World War the Channel Islands were occupied by Germany. The Bailiwick of Guernsey includes Alderney (with its own Parliament) and Sark, as well as several smaller islands.

Monetary History Overview

For long time, the Channel Islands had been economically closer to France than England, and French accounting was used until the 19th century. In 1829, Guernsey abolished the French Livre as unit of account, more than 30 years after the French currency reform. The 1st Guernsey Pound was set equal to 24 French Francs and both accountings were used concurrently. French money was circulating, together with local subsidiary coins that were issued after 1830. An attempt to introduce British coins failed around 1850. In the 1860, two commercial banks began issuing paper money in British currency. In the late 1890s, the government issued paper money in Guernsey currency, sometimes with double denominations in Pound and Franc. In June 1921 finally, Guernsey passed a currency law for the switchover to the Sterling accounting, the 2nd Guernsey Pound was equal to the Pound Sterling and British and local money circulated alongside. During the Second World War, Germany occupied the Channel Islands. The Guernsey currency remained in circulation together with occupation money issued by the German "Reichskreditkassen". The island government had to issue low-denominated paper money to compensate for the British silver coins confiscated by the occupier. After the liberation in 1945, the Reichsmark notes were fully redeemed by the British government. In February 1971, at the same time as in Great Britain, the subunit went decimal such that 100 New Pence went to the Pound instead of 96 Doubles, a counting that dated back to the time of French accounting. Parity with the Pound Sterling has remained since then. British banknotes and coins have now mostly been displaced but are still legal tender.

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