Manx pound

The pound (abbreviation: IMP; sign: £), or Manx pound (Manx: Punt Manninagh; in order to distinguish it from other similar-named currencies), is the currency of the Isle of Man, at parity with sterling. The Manx pound is divided into 100 pence. Notes and coins, denominated in pounds and pence, are issued by the Isle of Man Government. The Isle of Man is in a one-sided de facto currency union with the United Kingdom: the Manx government has made sterling currency legal tender on the island, and backs its own notes and coins with Bank of England notes. Manx government notes may, on demand, be exchanged at par for Bank of England notes of equivalent value at any office of the Isle of Man Bank. All notes and coins that are legal tender in any part of the United Kingdom (e.g. Bank of England notes) are legal tender within the Isle of Man. Unlike Northern Irish and Scottish notes, the UK does not require the Isle of Man government to back the Manx notes and coins with Bank of England notes or securities. There is no restriction under British law on the number of notes and coins they may issue, but equally Manx notes are not legal currency in the UK as they have not been approved by the British Parliament. The notes and coins are not underwritten by the UK government or the Bank of England, and there is no guarantee of convertibility beyond that given by the Manx authorities. However, the requirement in the island's Currency Act 1992 for the Isle of Man Treasury to exchange Manx Pound banknotes on demand for Bank of England notes in practice restricts the issue of unbacked currency, and the aggregate total of notes issued must be pre-approved by Tynwald.