SHP - Saint Helena Pound

Overview of the Saint Helena Pound SHP

The Saint Helena Pound (SHP) is the official currency of Saint Helena, Ascension Island, and Tristan da Cunha, which are British Overseas Territories located in the South Atlantic Ocean. It is used for everyday transactions on the islands and is recognized alongside the British Pound.

The currency is divided into 100 pence, similar to the British Pound, and features coins and banknotes unique to the islands, often depicting local landmarks and historical figures. While the British Pound is accepted on the islands, the Saint Helena Pound is the primary currency for local transactions.

The History of the Saint Helena Pound

The Saint Helena Pound (SHP) was introduced in 1976 to replace the British Pound (GBP), which had previously been used in the territories. The introduction of the SHP marked a move towards monetary independence for Saint Helena and Ascension Island, allowing these territories to better manage their own economies.

The SHP is pegged to the British Pound at a 1:1 exchange rate, and both currencies can circulate together on the islands. This arrangement facilitates international transactions and trade with the United Kingdom.

Saint Helena Pound denominations

The Saint Helena Pound is currently in circulation with both coins and banknotes. The denominations of Saint Helena currency are:

• Coins: 1, 2, 5, 10, 20, 50 cents, £1, £2

• Banknotes: £5, £10, and £20

Compared to other British colonies, Saint Helena has a long history of issuing its own currency, which has evolved through various economic phases.

Since 1716, the Governor and Council of Saint Helena Island issued banknotes in denominations of 2/6 and 5/-, as well as 1 and 2 British pound coins, which were issued until the late 18th century.

The next issuance of banknotes took place after 1917. These were issued by the Saint Helena Currency Board with denominations of 5/-, 20/-, and 40/-.

In 1976, the Saint Helena Currency Board began issuing £1 and £5 banknotes, followed by £0.50 and £10 banknotes in 1979. The £0.50 and £1 notes were withdrawn and replaced with coins in 1984, and the £20 note was issued in 1986. In 1988, the £5 note was redesigned and reintroduced.

In 2004, a new series of £10 and £20 banknotes was introduced, produced by De La Rue Banknote and Engraving Company, with new security features. With the release of the new series, the £1 banknote was withdrawn from circulation.

Factors Affecting the Value of the SHP

Since the Saint Helena Pound is pegged at a 1:1 exchange rate with the British Pound, the value of SHP is directly influenced by the monetary policies of the Bank of England. Factors affecting the GBP, such as interest rates, inflation, and the economic situation in the United Kingdom, also influence the SHP. Additionally, demand and tourism flows to these islands have some impact on the value of the SHP.

Role of the Saint Helena Pound in the Local Economy

The SHP is the primary currency used for daily transactions, including spending in tourism, services, and local trade. However, due to the small size of Saint Helena's economy and its reliance on the United Kingdom, SHP is not widely circulated outside of the territory.

Overall, the Saint Helena Pound is an independent currency with the same value as the British Pound, primarily used for transactions on the island and playing an important role in maintaining the local economy.