Pound sterling is a lot of currency, but not all parts of the United Kingdom. This article discusses the history of pound sterling in the territory of Australia, New Zealand, and the Pacific.
Video History of pound sterling in Oceania
Histori
The British victory at the Battle of Waterloo in 1815 marked the beginning of a new world order in which England would be the world's highest power for the next hundred years. In the time of Waterloo, the British Empire consisted of a new world region in the West Indies and in North America that had been maintained after the loss of thirteen colonies. In addition, there are colonies in New South Wales, the Rock of Gibraltar at the entrance to the Mediterranean Sea, and territories controlled by the British East India Company. Victory in the Napoleonic wars brought booty to England which added more territories such as Malta, British Guiana, and Mauritius to the empire. This was the beginning of the golden era for England, and the new Royal Mint at Tower Hill created a new golden sovereignty in 1817. At the same time, the Spanish Empire suffered a setback with the ongoing revolution in the new world. The eight Spanish silver pieces that have shaped the international currency for nearly four hundred years are mostly printed in the new world mints in Potosi, Mexico, and Lima. This silver dollar inventory was cut off by a revolutionary war, and since Britain formally adopted a successful gold standard in 1821, the British government decided in 1825 to introduce the sterling currency to all its colonies. An imperial order council was issued to assign sterling coin ratings to other already-circulating Spanish and foreign coins, for the purpose of facilitating the transition to sterling.
While this measure was largely unsuccessful in the British colonies of North America and originally in some of the West Indies, the situation in New South Wales was different due to the absence of a deep-rooted monetary system. Thus, the British sterling currency was adopted in New South Wales with relative ease, and because of this British influence area developed during the nineteenth century to incorporate the remaining continents of Australia, New Zealand and a large number of Pacific Islands. , the British sterling currency followed.
Maps History of pound sterling in Oceania
Monetary unity
From the second half of the nineteenth century until the outbreak of the First World War, monetary union, based on the sovereignty of British gold was in part of the British Empire. This sterling part of the United Kingdom consists primarily of Australia, New Zealand, British Isles in the Pacific, South Africa England, West Africa England, British West Indies, Gibraltar, Malta and the South Atlantic region. It was the British government's plan in 1825 to have sterling coins circulating in all the British colonies. However, by the 1860s, the British government had given up trying to impose sterling currencies in areas like Canada, Newfoundland, British India and Hong Kong against the resistance of deep-rooted practices, just like the British East India Company both give up trying to impose a rupee on the Straits Settlements. Finally, even Indians and Straits Settlements adopt sterling exchange standards, leaving only Canada, Newfoundland, Honduras UK, and Hong Kong completely outside the sterling system.
This sterling money union existed during the same period with the presence of Latin Monetary, and in both cases, the First World War was a major factor that marked the end of unity. In both cases, the guild is maintained on the basis of specie gold standards. During the period of monetary union, the standard problem of sterling coins, printed at Royal Mint in Tower Hill, London circulated in England, Australia and its dependencies such as Papua New Guinea, New Zealand and its dependence like Western Samoa, as well as in Fiji and Western Pacific West Region. Regarding banknotes, banknotes are issued by banks in the UK, Scotland, Ireland, Australia and New Zealand.
In 1910, Australia introduced its own currency in sterling currency similarities. That's almost the same as the British currency, which differs mainly in the use of otherwise distinctive Australian symbols. At the same time, the law prohibits Australian banks from issuing paper money, and the authority is reserved for the newly formed Commonwealth Bank. This leaves an interesting situation where Australian personal banknotes are limited to circulation in New Zealand, and Australian records are so marked with New Zealand words. This action by Australia in issuing its own national sterling currency has no practical effect on such monetary union. Originally, this Australian coin was printed at the Royal Mint in Tower Hill, London, although there were three Royal Mint branches operating in Australia at the time. The reason is that this Australian branch candy in Sydney, Melbourne, and Perth only has facilities to get gold sovereignty. However, in 1916, Australian sterling coin varieties were being printed locally.
With the suspension of gold coin payments at the outbreak of the First World War, the binding factors have been removed and banknotes in their respective territories become unsubsidized and hence free to float, to the extent that common coins will permit. In the case of Australia, there are no complications because different Australian coins already exist. In the case of New Zealand and Fiji, the situation could potentially prove problematic, but the problem does not arise until the Great Depression.
The Great Depression was a catalyst that forced a more dramatic shift in exchange rates between various pounds, and in 1934 New Zealand and Fiji began issuing their own sterling coin varieties.
Australia
Australia returned to the gold standard in 1925 in relation to England and South Africa. As in the case of the British Empire, there is no return to the gold standard, but the introduction of the standard gold bullion. This once again officially locked the pound in Australia for parity with the British pound. During the period between 1914 and 1925, telegraph transfers between London and Australia had deviated somewhat from parity, but at the time, it was only seen as a temporary obstacle due to emergencies and the suspension of the gold standard. No one considers the Australian pound as a separate currency from sterling. However, in 1929, the Great Depression took place, and crude producers in the southern hemisphere, such as Argentina, Chile, Australia and New Zealand were the first to feel the impact. Australian banks controlling the stocks with London began selling Australian units at a discount to boost their export competitiveness to London. The gold standard in Australia is simultaneously abandoned and the Australian pound is now at a 25% discount to pound sterling.
When Britain itself later abandoned the gold standard in 1931, it opened certain questions for the first time. What does the Australian pound mean if it is not connected to gold? It was decided after 1931 to formally peg the Australian pound at a fixed 25% discount to pound sterling and to set it as that alone. Therefore, the Australian pound maintained its close relationship with the pound sterling and when the Second World War broke out in 1939, Australia joined the sterling territory which is an emergency measure of war designed to protect the external value of pound sterling, especially against the US dollar.
In 1966, the Australian pound was weakened at the rate of two new Australian dollars. When pound sterling was devalued in 1967, the Australian unit did not follow it but continued to peg sterling at a new fixed rate. In 1971, Australia turned its stake into US dollars and in June 1972, the sterling area as an exchange control area shrank to only enter the British Isles. In September 1972, Australia responded by amending its own exchange control law, and by the floating of the British unit, which began in June 1972, all previous relationships between the two currencies effectively ended.
New Zealand
Unlike Australia, in the critical period between 1914 and the Great Depression, New Zealand has nothing to do with the central bank or monetary authority. New Zealand Connections to Pound Sterling purely through the Specie Gold Standard, and when the Specie Gold Standard was suspended in the outbreak of the first world war, the relationship was based on nothing but existing practice. The banks control telegraph transfers between New Zealand and London, and thus the exchange rate is entirely in their hands. New Zealand is now effectively using sterling exchange standards, controlled by Australian trading banks, and this sterling exchange standard became the gold exchange standard for the period between 1925 and 1931 when England was in the gold bullion standard. But it was not until the Great Depression that Australian banks created a substantial difference from the traditional one-to-one parity between the London pound and the New Zealand pound. Australia and New Zealand's raw exports to London were devastated by depression, and in an effort to sustain demand, Australian banks decided to sell New Zealand pounds at a 9% discount, taking exchange rates of up to 110 pounds New Zealand to 100 pounds sterling in 1931 Since this is a new area in the history of money, the situation becomes somewhat confusing because the present situation exists where such exchange rates between Australia and New Zealand are equivalent and do not correspond to their respective exchanges. fare with London. By 1933 the situation had changed to a state where the New Zealand pound and Australian pound were both awarded a 20% discount in respect of the London pound, taking the exchange rate to New Zealand 125 pounds equivalent to 100 pounds sterling. New Zealand joined the sterling area in 1939 at the outbreak of the second world war and in 1948, the New Zealand pound once again returned to parity with pound sterling.
In 1967, New Zealand slashed its pound into two New Zealand dollars and then that year, when the pound sterling was devalued, New Zealand took the opportunity to realign its new dollar to parity with the Australian dollar.
In 1971, New Zealand turned its stake into US dollars, and in 1972, as did the United Kingdom and Australia, New Zealand terminated its region-based exchange control laws.
Fiji
From its earliest days as a British colony, British sterling coins circulated in Fiji, coupled with locally produced paper money. In 1917, as a wartime emergency measure, the Fiji Treasury issued paper money to Fiji in lieu of the British gold rulers. During the great Depression of the 1930s, Australian and New Zealand banks devalued pounds in their respective territories to increase their exports to the UK. These same banks controlled the exchange rate for Fiji, and in 1933 the Fiji pound was devalued to Ã, £ 1.2.2 Fijian = Ã, Â £ 1 Sterling to make it aligned with the New Zealand devalued pound, although the New Zealand pound would very quickly devalued further to make it in line with the devalued Australian pound. At the outbreak of the second world war in 1939, the sterling area was formed as an exchange control area for the purpose of protecting the external value of pound sterling, especially against the US dollar. Fiji soon joined the sterling area.
When pound sterling was devalued on November 20, 1967, Fiji immediately followed suit. However, over the next week, Fiji considers the devastating impact that devaluation would have on imports to Fiji while watching how Australia and New Zealand will respond to the situation. On November 28, 1967, Fiji decided to partially revalue its pound, resulting in a sterling exchange rate of Ã, Â £ 104.10,0 Fijian = Ã, Â £ 100 Sterling. It has the effect of bringing the Fiji pound closer to its original relationship with the Australian and New Zealand pounds before the turbulence that occurred in the exchange rate during the Great Depression of the 1930s. In 1969, the Fiji pound was replaced by the Fiji dollar at level 1 Fiji Massage = 2 Fijian dollars so the new Fijian dollar is roughly equal to the new dollar in Australia and New Zealand.
In June 1972, the United Kingdom unilaterally terminated its value control laws based on sterling territory and inflated pound sterling. On June 30, 1972, Fiji was imposed with similar legislation, thereby ending the formal relationship between Britain and the Fiji unit.
Western Pacific High Commission Territory
The British governor of Fiji also has responsibility for other Pacific island groups in his capacity as High Commissioner for the Western Pacific. These jurisdictions include the British Solomon Islands Protectorate, Anglo-French condos known as the New Hebrides, Nauru, Pitcairn Islands, Gilbert Islands and Ellice, and the Kingdom of Tonga. In the mid-1930s there was confusion in these areas whether or not the pound unit accounts representing the Australian pound or pound sterling. Clarification was requested and it was decided that all sterling accounts in the region, with the exception of the Pitcairn Islands, should be considered Australian pounds. In the case of the British Solomon Protectorate of England, this was confirmed by King's rule in 1935. Areas under Australian direct jurisdiction such as Papua New Guinea also use Australian Pounds, while territories under New Zealand jurisdictions, such as Western Samoa and Cook Islands, and the Pitcairn Islands use pound New Zealand. Therefore now there are a total of three different pound units used in the Australasian and Pacific region, none of which is the same as pound sterling. There are Australian pounds, Fiji pounds, and New Zealand pounds. However, the New Zealand pound, as stated above, did return to parity with pound sterling in 1948.
See also
- Pound Sterling
- Australian Pound
- Australian 1 pound note
- New Zealand Pound
- Solomon Islands Pound
- Fiji Pound
- West Samoan Pound
- Punch hit
Note
References
Source of the article : Wikipedia
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