Palestinian_currency

Palestine pound

Palestine pound

Currency of the British Mandate of Palestine and later Israel from 1927 to 1952

The Palestine pound (Arabic: جُنَيْه فِلَسْطَينِيّ, junayh filastini; Hebrew: פוּנְט פַּלֶשְׂתִינָאִי (א״י), romanized: funt palestina'i (eretz-yisra'eli) or Hebrew: לירה (א״י), romanized: lira eretz-yisra'elit; Sign: £P[1][2][improper synthesis?]) was the currency of the British Mandate of Palestine from 1 November 1927 to 14 May 1948, and of the State of Israel between 15 May 1948 and 23 June 1952, when it was replaced with the Israeli pound.

Quick Facts Unit, Symbol ...
A 500 mil (£P1⁄2) note issued by the Anglo-Palestine Bank in Tel Aviv in 1948.

The Palestine pound was also the currency of Transjordan until 1949 when it was replaced by the Jordanian dinar, and remained in usage in the West Bank of Jordan until 1950. In the Gaza Strip, the Palestine pound continued to circulate until April 1951, when it was replaced back with the Egyptian pound.

History

Until 1918, Palestine was an integral part of the Ottoman Empire and therefore used its currency, the Ottoman lira. During 1917 and 1918, Palestine was occupied by the British army, who set up a military administration. The official currency was the Egyptian pound, which had been first introduced into Egypt in 1834, but several other currencies were legal tender at fixed exchange rates that were vigorously enforced.[3][4] 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.[5]

In 1926, the British Secretary of State for the Colonies appointed a Palestine Currency Board to introduce a local currency.[6] It was based in London and chaired by P. G. Ezechiel, with a Currency Officer resident in Palestine.[6] The board decided that the new currency would be called the Palestine pound, 1:1 with sterling and divided into 1,000 mils.[7] The £P1 gold coin would contain 123.27447 grains of standard gold.[7] The enabling legislation was the Palestine Currency Order, 1927, signed by the King in February 1927.[8] The Palestine pound became legal tender on 1 November 1927.[9] The Egyptian pound (at the fixed rate of £P1 = £E0.975) and the British gold sovereign remained legal tender until 1 March 1928.[8][10]

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.[11][12] The Egyptian pound remained legal tender in Transjordan until 1930.[13]

All the denominations were trilingual in Arabic, English and Hebrew. The Hebrew inscription included after "Palestina" the initials Aleph Yud, for "Eretz Yisrael" (Land of Israel).

It so happened that the new Palestinian currency was released, which was a great ordeal. The Palestinian currency which was coined especially for Palestine, and issued both in banknotes and coins, had the phrase “the land of Israel” written on it in Hebrew. Despite this hint, we accepted it, and the Arabs of Palestine dealt in it in what was almost an acknowledgment that Palestine was the land of Israel.

— Wasif Jawhariyyeh, The Storyteller of Jerusalem, page 698

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:[citation needed]

  • Israel adopted the Israeli lira in 1952. In August 1948, new banknotes were issued by the Anglo-Palestine Bank, owned by the Jewish Agency and based in London.
  • Jordan adopted the Jordanian dinar in 1949.
  • In the West Bank, 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 Gaza Strip, the Palestine pound continued to circulate until April 1951, when it was replaced by the Egyptian pound, 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 and the Jordanian dinar.[14] The shekel is used for most transactions, especially retail, while the dinar is used more for savings and durable goods transactions.[15] The US dollar is also sometimes used for savings and for purchasing foreign goods.[15] The dollar is used by the overwhelming majority of transactions overseen by the Palestinian Monetary Authority (Palestine's nascent central bank), which only represent a fraction of all transactions conducted in Palestine or by Palestinians.[16]

The shekel is the main currency in Gaza.[17][18] Under Egyptian rule (1948–1956), Gaza mainly used the Egyptian pound.[19][20] When Israel occupied the Gaza Strip during the 1956 Suez Crisis, 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.[19] 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.[19][21]

Under Article IV of the Protocol on Economic Relations, the Palestinians are not allowed to independently introduce a separate Palestinian currency.[22][23] At the same time, the use of two currencies increases the costs and inconvenience arising from fluctuating exchange rates.[23]

Coins

In 1927,[citation needed] 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, 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.

More information Issued by the Palestine currency Board, Image ...

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.[25]

More information Issued by the Palestine currency Board, Image ...

The £P100 note was equivalent to 40 months’ wages of a skilled worker in Palestine.[27] 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.[28]

See also

References

  1. [1]
    As depicted on a revenue stamp issued under the Mandate.
  2. [2]
    As depicted on a Barclays cheque
  3. [3]
    Egyptian Expeditionary Force, The Palestine News, March 7, 1918, p2. Turkish coins but not Turkish notes were legal. In January, a resident of Jerusalem was sentenced to 3 months' hard labour for selling a French Napoleon for 92.5 piastres instead of the regulation 77.15 piastres.
  4. [4]
    Egyptian Expeditionary Force, A Guide-Book to Central Palestine, August 1918, p106.
  5. [5]
    Official Gazette of the Government of Palestine, No. 36, 1 February 1921, p13.
  6. [6]
    Official Gazette of the Government of Palestine, No. 170, 1 September 1926, pp447–449.
  7. [7]
    Official Gazette of the Government of Palestine, No. 182, 1 March 1927, pp131–134.
  8. [8]
    Official Gazette of the Government of Palestine, No. 193, 16 August 1927, pp590–592.
  9. [9]
    Official Gazette of the Government of Palestine, No. 196, 1 October 1927, p679.
  10. [10]
    Official Gazette of the Government of Palestine, No. 205, 16 February 1928, p94, and No. 206, 1 March 1928, p114.
  11. [11]
    Howard M. Berlin (2015). The Coins and Banknotes of Palestine Under the British Mandate, 1927-1947. McFarland. p. 22.
  12. [12]
    Palestine Currency Board, Report for the period ending 1st March 1928
  13. [13]
    Howard M. Berlin (2015). World Monetary Units: An Historical Dictionary, Country by Country. McFarland. p. 85.
  14. [14]
    Zacharia, Janine (2010-05-31). "Palestinian officials think about replacing Israeli shekel with Palestine pound". The Washington Post. ISSN 0190-8286. Retrieved 2018-08-22.
  15. [15]
    Cobham, David (2004-09-15). "Alternative currency arrangements for a new Palestinian state". In David Cobham; Nu'man Kanafani (eds.). The Economics of Palestine: Economic Policy and Institutional Reform for a Viable Palestine State (PDF). London: Routledge. ISBN 9780415327619. Retrieved 2018-08-22.
  16. [16]
    Lauria, Joe (2014-08-09). "Getting Money in Gaza: An Interview With Palestine's Central Banker". Huffington Post. Retrieved 2018-08-22.
  17. [17]
    "Palestinian Territories > Gaza Strip > Currency". Lonely Planet. Retrieved 22 August 2018.
  18. [18]
    "استبدال العملات التالفة وإدخال الفكة و15 مليون دولار لغزة". سوا: وكالة انباء فلسطينية مستقدمة. 25 June 2018. Retrieved 22 August 2018.
  19. [19]
    Filiu, Jean-Pierre (2014-08-14). Gaza: A History. Oxford University Press. p. 123. ISBN 9780190201913. Retrieved 22 August 2018.
  20. [20]
    "حلقات الحصار تشتدّ.. أزمة السيولة النقدية تُطيح باقتصاد غزة". الخليج اونلين. 31 May 2018. Retrieved 22 August 2018.
  21. [21]
    Abu Amer, Ahmad (2 July 2018). "Israel tightens financial noose on Gaza". Al-Monitor. Retrieved 22 August 2018.
  22. [22]
    Annex IV - Protocol on Economic Relations between the Government of the State of Israel and the P.L.O., representing the Palestinian people. Israel MFA, 29 April 1994
  23. [23]
    Naqib, Fadle M. (October 2002). Economic Aspects of the Palestinian-Israeli Conflict (PDF) (Report). UNU World Institute for Development Economics Research (UNU/WIDER). p. 13. ISSN 1609-5774. Discussion Paper No. 2002/100. Retrieved 22 August 2018.[permanent dead link]
  24. [24]
    "Bank of Israel - Past Notes & Coins Series - Past Notes & Coin Series". www.boi.org.il. Retrieved 2017-11-30.
  25. [25]
    Linzmayer, Owen (2012). "Palestine". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  26. [26]
    Palestine Gazette, March 1, 1927, p134
  27. [27]
    Berlin, Howard M (2001). The coins and banknotes of Palestine under the British mandate, 1927-1947. Jefferson: McFarland. p. 71. ISBN 978-0786408795.
  28. [28]
    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.
  • Krause, Chester L.; Clifford Mishler (1991). Standard Catalog of World Coins: 1801–1991 (18th ed.). Krause Publications. ISBN 0873411501.
  • Pick, Albert (1994). Standard Catalog of World Paper Money: General Issues. Colin R. Bruce II and Neil Shafer (editors) (7th ed.). Krause Publications. ISBN 0-87341-207-9.
  • Berlin, Howard (2005). The Coins And Banknotes of Palestine Under the British Mandate, 1927-1947. McFarland & Company. ISBN 0-7864-2445-1.
  • 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.
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