The Gibraltar pound (abbreviated as GIP) is the official currency for the country of Gibraltar. The currency was introduced in 1825, and it is subdivided into 100 cents. The coins are 1, 2, 5, 10, 20 and 50 cents, and 1 pound. The banknotes are 5, 10, 20 and 50 pounds.Gibraltar has been using its own currency since 1825 when it became a British colony. At that time Spanish pesetas were used but this gave way to sterling following Spanish defeat in the Peninsular War of 1808-14 against Napoleon's forces who were then occupying Spain. In 1969 Gibraltar decimalized its currency with 100 pence = 1 pound but retained the name "pounds" for historical reasons - although Bank of England notes were not legal tender in Gibraltar until 1988!The main reason for having our own currency is to ensure that we maintain control over our economy - particularly given our proximity to Spain which could be seen as a threat by some people here.
