The Palestine pound ( ar, جُنَيْه فِلَسْطَينِيّ, ; he, פוּנְט פַּלֶשְׂתִינָאִי (א״י), funt palestina'i (eretz-yisra'eli) or he, לירה (א״י), lira eretz-yisra'elit, link=no;

Sign A sign is an object, quality, event, or entity whose presence or occurrence indicates the probable presence or occurrence of something else. A natural sign bears a causal relation to its object—for instance, thunder is a sign of storm, or ...

: £P) was the

currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general ...

of the

British Mandate of Palestine British Mandate of Palestine or Palestine Mandate most often refers to: * Mandate for Palestine: a League of Nations mandate under which the British controlled an area which included Mandatory Palestine and the Emirate of Transjordan. * Mandatory P ...

from 1 November 1927 to 14 May 1948, and of the State of

Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...

between 15 May 1948 and 23 June 1952, when it was replaced with the Israeli lira. The Palestine pound was also the currency of Transjordan until 1949 when it was replaced by the

Jordanian dinar The Jordanian dinar ( ar, دينار أردني; code: JOD; unofficially abbreviated as JD) has been the currency of Jordan since 1950. The dinar is divided into 10 dirhams, 100 qirsh (also called piastres) or 1000 fulus. It is pegged to the U ...

, and remained in usage in the

West Bank The West Bank ( ar, الضفة الغربية, translit=aḍ-Ḍiffah al-Ġarbiyyah; he, הגדה המערבית, translit=HaGadah HaMaʽaravit, also referred to by some Israelis as ) is a landlocked territory near the coast of the Mediter ...

of Jordan until 1950. In the

Gaza Strip The Gaza Strip (;The New Oxford Dictionary of English (1998) – p.761 "Gaza Strip /'gɑːzə/ a strip of territory under the control of the Palestinian National Authority and Hamas, on the SE Mediterranean coast including the town of Gaza.. ...

, the Palestine pound continued to circulate until April 1951, when it was replaced by the

Egyptian pound The pound ( arz, جنيه مصرى '; abbreviation: LE in Latin, in Arabic, historically also £E; ISO code: EGP) is the official currency of Egypt. It is divided into 100 piastres, or ersh ( ; ''plural'' ; abbreviation: PT), or 1,000 mill ...

History

Until 1918, Palestine was an integral part of the

Ottoman Empire The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University ...

and therefore used its currency, the

Ottoman lira The lira (sign: LT) was the currency of Ottoman Empire between 1844 when it was replaced by the Turkish lira. The Ottoman lira remained in circulation until the end of 1927, as the republic was not in a position to issue its own banknotes yet i ...

. During 1917 and 1918, Palestine was occupied by the British army, who set up a

military administration Military administration identifies both the techniques and systems used by military departments, agencies, and armed services involved in managing the armed forces. It describes the processes that take place within military organisations outsi ...

. The official currency was the

, which had been first introduced into Egypt in 1834, but several other currencies were

legal tender Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in ...

at fixed exchange rates that were vigorously enforced. After the establishment of a civil administration in 1921, the High Commissioner Herbert Samuel ordered that from 22 January 1921 only Egyptian currency and the British gold sovereign would be legal tender. In 1926, the British

Secretary of State for the Colonies The secretary of state for the colonies or colonial secretary was the British Cabinet minister in charge of managing the United Kingdom's various colonial dependencies. History The position was first created in 1768 to deal with the increas ...

appointed a Palestine Currency Board to introduce a local currency.Official Gazette of the Government of Palestine, No. 170, 1 September 1926, pp447–449

/ref> It was based in London and chaired by P. G. Ezechiel, with a Currency Officer resident in Palestine. The board decided that the new currency would be called the Palestine pound, 1:1 with pound sterling, sterling and divided into 1,000 mils.Official Gazette of the Government of Palestine, No. 182, 1 March 1927, pp131–134. The £P1 gold coin would contain 123.27447 grains of standard gold. The enabling legislation was the Palestine Currency

Order Order, ORDER or Orders may refer to: * Categorization, the process in which ideas and objects are recognized, differentiated, and understood * Heterarchy, a system of organization wherein the elements have the potential to be ranked a number of ...

, 1927, signed by the King in February 1927.Official Gazette of the Government of Palestine, No. 193, 16 August 1927, pp590–592. The Palestine pound became legal tender on 1 November 1927.Official Gazette of the Government of Palestine, No. 196, 1 October 1927, p679. The Egyptian pound (at the fixed rate of £P1 = £E0.975) and the British gold sovereign remained legal tender until 1 March 1928. The Palestine Currency Order explicitly excluded Transjordan from its application, but the Government of Transjordan decided to adopt the Palestine pound at the same time as Palestine did. The Egyptian pound remained legal tender in Transjordan until 1930. All the denominations were trilingual in

Arabic Arabic (, ' ; , ' or ) is a Semitic language spoken primarily across the Arab world.Semitic languages: an international handbook / edited by Stefan Weninger; in collaboration with Geoffrey Khan, Michael P. Streck, Janet C. E.Watson; Walter ...

English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ...

and

Hebrew Hebrew (; ; ) is a Northwest Semitic language of the Afroasiatic language family. Historically, it is one of the spoken languages of the Israelites and their longest-surviving descendants, the Jews and Samaritans. It was largely preserved ...

. The Hebrew inscription included after "Palestina" the initials

Aleph Aleph (or alef or alif, transliterated ʾ) is the first letter of the Semitic abjads, including Phoenician , Hebrew , Aramaic , Syriac , Arabic ʾ and North Arabian 𐪑. It also appears as South Arabian 𐩱 and Ge'ez . These lett ...

Yud, for "Eretz Yisrael" (

Land of Israel The Land of Israel () is the traditional Jewish name for an area of the Southern Levant. Related biblical, religious and historical English terms include the Land of Canaan, the Promised Land, the Holy Land, and Palestine (see also Isr ...

). The Currency Board was dissolved in May 1948, with the end of the British Mandate, but the Palestinian pound continued in circulation for transitional periods: *

adopted the Israeli lira in 1952. In August 1948, new banknotes were issued by the Anglo-Palestine Bank, owned by the

Jewish Agency The Jewish Agency for Israel ( he, הסוכנות היהודית לארץ ישראל, translit=HaSochnut HaYehudit L'Eretz Yisra'el) formerly known as The Jewish Agency for Palestine, is the largest Jewish non-profit organization in the world. ...

and based in London. *

Jordan Jordan ( ar, الأردن; tr. ' ), officially the Hashemite Kingdom of Jordan,; tr. ' is a country in Western Asia. It is situated at the crossroads of Asia, Africa, and Europe, within the Levant region, on the East Bank of the Jordan Rive ...

adopted the

in 1949. * In the

, the Palestine pound continued to circulate until 1950, when the West Bank was annexed by Jordan, and the Jordanian dinar became legal tender there. The Jordanian dinar is still legal tender in the West Bank along with the Israeli shekel. * In the

, the Palestine pound continued to circulate until April 1951, when it was replaced by the

, three years after the Egyptian army took control of the territory. Since the mid-1980s, the primary currencies used in the West Bank have been the

shekel Shekel or sheqel ( akk, 𒅆𒅗𒇻 ''šiqlu'' or ''siqlu,'' he, שקל, plural he, שקלים or shekels, Phoenician: ) is an ancient Mesopotamian coin, usually of silver. A shekel was first a unit of weight—very roughly —and became c ...

and the

. The shekel is used for most transactions, especially retail, while the dinar is used more for savings and

durable good In economics, a durable good or a hard good or consumer durable is a good that does not quickly wear out or, more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be consi ...

s transactions. The

US dollar The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...

is also sometimes used for savings and for purchasing foreign goods. The dollar is used by the overwhelming majority of transactions overseen by the Palestinian Monetary Authority (Palestine's nascent

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a centra ...

), which only represent a fraction of all transactions conducted in Palestine or by Palestinians. The shekel is the main currency in Gaza. Under Egyptian rule (1948–1956), Gaza mainly used the

. When Israel occupied the Gaza Strip during the 1956

Suez Crisis The Suez Crisis, or the Second Arab–Israeli war, also called the Tripartite Aggression ( ar, العدوان الثلاثي, Al-ʿUdwān aṯ-Ṯulāṯiyy) in the Arab world and the Sinai War in Israel,Also known as the Suez War or 1956 Wa ...

, the military administration made the Israeli lira (the predecessor to the shekel) the only legal currency in Gaza in a 3 December decree, and implemented a favorable exchange rate to remove all Egyptian pounds from circulation. As a result, the lira and then the shekel became the dominant currency in Gaza, a situation that was reinforced in 1967 by the Israeli occupation of Gaza following the

Six-Day War The Six-Day War (, ; ar, النكسة, , or ) or June War, also known as the 1967 Arab–Israeli War or Third Arab–Israeli War, was fought between Israel and a coalition of Arab states (primarily Egypt, Syria, and Jordan) from 5 to 10 ...

. Under Article IV of the

Protocol on Economic Relations The Protocol on Economic Relations, also called the Paris Protocol, was an agreement between Israel and the PLO, signed on 29 April 1994, and incorporated with minor amendations into the Oslo II Accord of September 1995. Position in the agreeme ...

, the Palestinians are not allowed to independently introduce a separate Palestinian currency. At the same time, the use of two currencies increases the costs and inconvenience arising from fluctuating exchange rates.

Coins

In 1927, coins were introduced in denominations of 1, 2, 5, 10, 20, 50 and 100 mils. The 1 and 2 mil were struck in bronze, whilst the 5, 10 and 20 mil were holed, cupro-nickel coins, except for during

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...

, when they were also minted in bronze. The coin of 10 mils was also called a grush. The 50 and 100 mil coins were struck in .720 silver. The last coins were issued for circulation in 1946, with all 1947 dated coins being melted down.

Banknotes

On 1 November 1927, banknotes were introduced by the Palestine Currency Board in denominations of 500 mils, £P1, £P5, £P10, £P50 and £P100. Notes were issued with dates as late as 15 August 1945. The £P100 note was equivalent to 40 months’ wages of a skilled worker in Palestine. At the end of 1947, five months before the end of the British Mandate, there were 1,590 £P100 notes in circulation, out of a total circulation of £P40.6 million in notes and £P1.5 million in coins.Palestine Currency Board, Statement of Coins and Notes in Circulation at the 31st December, 1947. The Palestine Gazette No. 1644, January 29, 1948, p. 72.

References

* * * * ''Memorandum relating to currency arrangements.'' In: Official Gazette of the Government of Palestine, 9. 1927, no. 182 (1.03.1927), pp. 131–134. * ''Currency Notes Ordinance 1927.'' In: Official Gazette of the Government of Palestine, 9. 1927, no. 184 (1.04.1927), pp. 249–252. * ''Palestine Currency Order 1927.'' In: Official Gazette of the Government of Palestine, 9. 1927, no. 193 (16.08.1927), pp. 590–592. * ''Notice: Palestine Currency.'' In: Official Gazette of the Government of Palestine, 9. 1927, no. 197 (16.10.1927), pp. 726–727.

External links

{{DEFAULTSORT:Palestine Pound Currencies of the British Empire Currencies of Israel Currencies of Jordan Modern obsolete currencies Mandatory Palestine 1927 establishments in Mandatory Palestine 1950 disestablishments in Israel

History

Coins

Banknotes

See also

References

External links