IMP - Isle of Man Pound

Overview of the Isle of Man Pound (IMP)

The Isle of Man is located to the north of the Irish Sea, covering an area of approximately 572 km², and is a self-governing territory of the United Kingdom. The Manx pound or Isle of Man Pound is the official currency in circulation on the Isle of Man. The abbreviation for the currency is IMP, symbolized by £, and it is circulated in both coin and banknote forms. One Manx pound is divided into 100 pence. The Manx pound is issued by the Isle of Man Government.

The Manx Pound is equivalent in value to the British Pound (GBP) and is considered part of the United Kingdom's monetary system. This currency circulates alongside the British pound and is considered legal tender here. However, many businesses on the island still prefer to conduct transactions in Manx pounds. The Manx pound maintains a close relationship with the United Kingdom's system.

Manx banknotes can be exchanged for British pounds at par at any Isle of Man Bank. Unlike the banknotes of Northern Ireland or Scotland, the Manx pound does not require the Isle of Man government to back it with banknotes or securities of the Bank of England. English law does not restrict the amount of banknotes and coins they issue, but Manx banknotes are not legal tender in England because they have not been approved by the British Parliament.

Isle of Man Pound (IMP) Denominations

Currently, the Manx pound is in circulation with two types of currency: coins and banknotes with denominations such as:

• Banknotes: £1, £5, £10, £20, £50

• Coins: 1 penny, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, 1 pound, 2 pounds, 5 pounds

Isle of Man Pound (IMP) History

The first Manx coins were issued separately in 1668 by a Douglas merchant - John Murrey. These Murrey coins became legal tender in 1679, when Tynwald banned the circulation of previously unofficial private coins. 

In 1692, the Manx coinage was devalued due to difficulties in maintaining the supply on the island. The exchange rate against the sterling crown was 5 shillings 4 pence, the half-crown was 2 shillings 8 pence, and the guineas was 22 shillings. At this time, Tynwald also prohibited the transfer of money out of the island to maintain the supply.

In 1696, another devaluation occurred, with all British silver and gold being valued at 14 Manx pence per shilling. 

From 1696 to 1840, Manx copper coins circulated alongside the first English silver and gold coins, and later English coins, at the rate of 14 pence for 1 shilling.

In 1709, the first government-issued coins on the island were released and became legal tender from June 24, 1710.

In 1971, the United Kingdom switched to decimal currency, with the pound being divided into 100 pence. The Isle of Man government seized the opportunity, approached the Royal Mint, and requested their own decimal version, officially introduced in 1971.

The Manx Pound is not only a means of payment but also a cultural and historical symbol of the Isle of Man, affirming the independence and unique identity of this land.

Factors affecting Isle of Man Pound (IMP) value

The value of the Manx pound is influenced by various factors such as:

• Relationship with the British Pound: The Manx Pound is pegged to the British Pound (GBP) at a 1:1 ratio. The fluctuations of the British Pound on the international market also directly affect the value of the Manx Pound.

• National economic situation: Economic indicators such as GDP, unemployment rate, and the financial situation of the Isle of Man Government can affect the stability and value of the Manx Pound.

• The growth of the tourism industry: Tourism is one of the key sectors, providing significant revenue for the Isle of Man. The growth or decline in the tourism industry will affect the demand for the Manx pound, thereby impacting its value.

• Monetary policy: The monetary policy decisions of the Isle of Man Government and the Bank of England are direct factors affecting the value of the Manx Pound, including decisions on interest rates and money issuance.

• International trade and investment: Growth in international trade and investment will create demand for the Manx Pound. Factors such as trade surpluses and foreign investment flows can both affect the value of the currency.

• Politics and national security: The political and security situation of the Isle of Man and the surrounding area can also affect the stability and value of the Manx Pound. Political fluctuations can reduce the confidence of investors and consumers.

• Global financial markets: Trends and fluctuations in global financial markets can also affect the Manx Pound, especially in the context of globalization and the interconnectedness of economies.

The above factors interact with each other and can create fluctuations in the value of the Manx Pound over time.