The history of Jersey currency
The States of Jersey started to issue its own notes in 1941, after most of the silver coins circulating in the Island disappeared as the occupying forces took them as souvenirs. When the German occupation ended in 1945, the States stopped issuing notes.
In July 1963, the States began again to regularly issue its own notes. Since then the series of notes has been replaced every 12 years or so.
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Why it’s important to keep Jersey notes in circulation
Jersey notes that are circulation generate income for the Island. If we aren’t withdrawing Jersey cash from the banks, then the banks would have no need to buy notes from the States of Jersey. This is why the Island benefits from having its own currency.
How paper money creates more money
Jersey’s banks order paper money from the States of Jersey to meet the demand for cash from their customers. Jersey notes enter circulation via the following process:
- local banks place an order for cash with the States of Jersey Treasury
- the Treasury issues Jersey notes to local banks
- in return the local banks pay the Treasury the face value of the cash received
- the notes are withdrawn from local banks by Islanders
The money that the banks pay for the notes is invested by the States of Jersey and contributes to the overall running of the Island.
How many notes are usually in circulation?
There is usually about £70 million of Jersey notes in circulation, but this figure goes up at certain times of the year – for example at Christmas when Islanders withdraw more cash from the banks.