Manx Pound - Manx Pound and The Euro

Manx Pound and The Euro

It is the Manx Government's position that, if the United Kingdom decides to participate in the euro, then it would be likely that the Island would also choose to participate in some form. Primarily this is because most of the Island's trade is with the United Kingdom and other countries of Europe and the break-up of the currency union with the UK would cause economic harm to the Island, although there is also concern that the island's economy is not large enough to withstand attack by currency speculators if the Manx pound became free-floating.

"The idea that the Isle of Man could manage its own currency, for example, with all the difficulties and pitfalls this would involve, is not a viable option." — Jeremy Peat, Royal Bank of Scotland

Tynwald passed the Currency Act 1992 in preparation for the euro. The Isle of Man wishes to retain its right to issue its own currency, believing it to be an important public statement of independence, and the Act allows the issue of a new Manx currency at parity with the euro – referred to as a 'substitute euro'. Retaining the island's own coinage also enables the Isle of Man Treasury to continue to benefit from the accrual of the interest on the income of the issued money supply. However, on the other hand, the European Union is not obliged to recognize Manx decisions: Monaco, San Marino and Vatican City had to be allowed to mint their coins, even if they are free and independent states and, as a dependency, Mann has lower powers than those three nations. More, design changes of European banknotes are totally forbidden by the European Central Bank. Printing their own banknotes would bring Manx Government to violate the copyright legally detained by the ECB, committing a crime that would involve the British Government by virtue of its sovereignty on the island in international law.

Manx versions of the euro coins have already been designed, as have equivalents to the euro banknotes for all except the €500 note (the Treasury assume there is no demand for such a high value note).

If, after converting to the euro, the exchange rates set by the European Central Bank were to cause economic harm to the Isle of Man then there would be no eligibility for 'compulsory funding' under Protocol 3 of the Maastricht Treaty.

The Isle of Man Treasury has some concern that use of the island as a tax haven would increase if it were in monetary union with the entire euro zone, and that this could be another cause of considerable conflict between the Isle of Man and the European Union.

Current IMP exchange rates
From Google Finance:	AUD CAD CHF EUR GBP HKD JPY USD
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From XE.com:	AUD CAD CHF EUR GBP HKD JPY USD
From OANDA.com:	AUD CAD CHF EUR GBP HKD JPY USD
From fxtop.com:	AUD CAD CHF EUR GBP HKD JPY USD

The exchange rate is the same as for GBP, British Pounds Sterling. Only XE.com links are available.