Scottish currency: history and development

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The currency of Scotland is no different from the money of the rest of the United Kingdom. It is in use throughout the UK. The thing is that it is also represented by the British pound (£). Scottish banks print their own versions. These "Scottish notes" are widely accepted throughout the United Kingdom, although some shops outside of Scotland refuse them. However, when visiting the country by tourists from far abroad, it is better to exchange money for local ones.

The rate of the Scottish pound against the ruble is 1 to 84, 27.

Backstory

The history of the Scottish currency is quite remarkable. The first known coins in Scotland were brought here by the Romans. Prior to their arrival, the trade that existed in Caledonia seems to have been carried on by exchanging one commodity for another.

Found treasures show that Roman coins were used inScotland for at least five centuries after the Empire invaded. There is evidence that the ancient Scots traded with Roman Britain.

First own coins

Anglo-Saxon and Viking coins were widely used in the south of Scotland in the 9th and 10th centuries, but the big leap forward came in 1136 when King David I captured Carlisle and its silver mines. He quickly began minting silver coins, Scotland's first currency. Apart from its profile on one side, the Scottish silver penny was largely identical to the English one, and most importantly, it was minted to the same weight standards.

Thus, for almost 200 years, there was a de facto monetary union, as the English and Scottish pennies were used on both sides of the border.

David also introduced the Scottish pound and, under the influence of the Normans, adopted his system: 12 pennies per shilling and 20 shillings per pound.

The last of the Bruce dynasty, David II, decided to end the currency union and effectively devalued the Scottish coin. In 1356, the English King Edward III banned Scottish coins altogether in his country, which forced Robert III to further depreciate the currency of Scotland. He minted the first gold coin, William I the Lion and the Stuart dynasty continued to innovate and introduce new coins. Particularly beautiful was the Unicorn of Scotland, introduced by King James III.

Coin, monetary unit of Scotlandof those times, in this era, supposedly was worth its weight in any metal. When the Scottish economy was in decline, the kings reduced the amount of metal they produced, thereby automatically devaluing the Scottish currency.

The Stewarts were interested in changes in coinage. Everyone in Scotland was forced to change the old money for the new, and the kings profited well from this.

It was the Stuarts who first began to engrave the motto of the Order of the Thistle on coins: Nemo Me Impune Lacessit (No one hurts me without hurting himself).

When King James VI of Scotland became King James I of England, despite the fact that both countries remained independent, he ordered the renewal of the monetary union and bring Scottish money to the English standard: 12 Scottish pounds became equal to 1 pound sterling.

In the remaining period of the 17th century, a variety of coins were minted, copper continued to be in circulation.

The last true Scottish coin was the silver shilling introduced by James VII (II), but its weight reflected the fact that 13 Scottish shillings were equal in value to one English shilling.

Cessation of own coinage

Production of a separate Scottish currency ceased in 1707, after the Act of Union. It is interesting to note that Article 16 of the Act stated that from that moment on, in the whole of the United Kingdom, the coin must be of the same standard and value as in England.

Since 1709, they began to mint a single coin for the whole of Great Britain, which was achieved by Sir Isaac Newton, who wasMaster of the Mint. The demise of the Scottish Mint is still seen as a disaster for the country. It was finally closed in 1830.

Appearance of paper money

By the time of the merger, the Bank of Scotland, founded in 1695, had already begun issuing a currency that could transform the economic situation. Notes printed in Edinburgh could be redeemed in cash, i.e. coins or gold, on demand.

The first 1 pound note was printed in 1704, and until the Royal Bank came into existence in 1727, the Scottish had a wide field of activity. The Crown and the Bank of Scotland were competitors and did not recognize each other's notes until 1751. Over the centuries, about 80 banks have issued Scottish banknotes. Now there are only three - the Bank of Scotland, the Royal Bank and Clydesdale.

A far greater threat came from Westminster. In the mid-1820s, the government ordered £5 to be the minimum denomination in circulation. A massive campaign has begun. It was aimed at saving the Scottish £1 note. The movement was led by a certain Malachi Malagrouter, who is also known under the pseudonym Sir W alter Scott. The government eventually gave in, which is one of the reasons why his face appeared on Scottish banknotes.

Transformation of the banking system

By the time the Scottish Notes Act was issued in 1845, the distinctive character of the currency was undeniable. Currentlytechnically this money is not legal. Just to prove it, after the collapse of RBS and the Bank of Scotland, the Banking Act 2009 speaks of three Scottish banks (Royal, Bank of Scotland and Clydesdale) that can issue notes. However, they must keep an equivalent copy of a Bank of England note of the same monetary value for each Scottish note that is put into circulation.

Tourist information

Scotland is a well developed country with good economic infrastructure. For the average tourist, this means that it will be easy to exchange your money. Scotland also has no import or export restrictions on any form of money, so tourists don't have to worry about whatever currency they bring into the country.

One pound consists of 100 pence, there are coins in denominations of 1, 2, 5, 10, 20 and 50 pence, as well as 1 and two pounds. Banknotes have denominations of 5, 10, 20 and 50 pounds. Scottish banks also issue £1. This money can be used as legal tender anywhere in the United Kingdom.