Palestine pound facts for kids

Quick facts for kids Palestine pound
A 1939 one Palestine pound note
User(s)	Mandatory Palestine (1 Nov 1927 – 15 May 1948)  Emirate of Transjordan (1 Nov 1927 – 25 May 1946)  Jordan (25 May 1946 – 30 September 1950)  Israel (15 May 1948 – 23 June 1952) All-Palestine (22 September 1948 – April 1951) West Bank (1 December 1948 – 30 September 1950)
Subunit
1⁄1000	Mil
1⁄1000	Prutah (from 1950 in Israel)
Symbol	£P or LP
Coins	1, 2, 5, 10, 20, 25, 50, 100 mils, 1, 5, 10, 25, 50, 100, 250, 500 prutot
Banknotes	500 mils, £P1, £P5, £P10, £P50, £P100
Printer	Thomas De La Rue

A 500 mil (£P1⁄2) note issued by the Anglo-Palestine Bank in Tel Aviv in 1948.

The Palestine pound was the money used in the area known as the British Mandate of Palestine. This was from November 1, 1927, until May 14, 1948. It was also used in the new country of Israel from May 15, 1948, until June 23, 1952. After that, Israel started using the Israeli lira.

The Palestine pound was also the money for Transjordan until 1949. Then, the Jordanian dinar took its place. It stayed in use in the West Bank until 1950. In the Gaza Strip, the Palestine pound was used until April 1951. It was then replaced by the Egyptian pound.

History of the Palestine Pound

Money Before the Palestine Pound

Before 1918, the area of Palestine was part of the Ottoman Empire. So, people there used the Ottoman lira as their money. During World War I (1917-1918), the British army took control of Palestine. They set up a military government.

The main money used then was the Egyptian pound. This currency had been used in Egypt since 1834. Other types of money were also accepted at set exchange rates. In 1921, a civilian government took over. The leader, Herbert Samuel, said that only Egyptian money and the British gold sovereign would be legal to use.

Creating a New Currency

In 1926, the British government decided to create a local currency for Palestine. They set up the Palestine Currency Board in London. This board decided the new money would be called the Palestine pound. It would be worth the same as the British pound sterling. One Palestine pound was divided into 1,000 smaller units called mils.

The new Palestine pound became official money on November 1, 1927. The Egyptian pound and British gold sovereign were still accepted until March 1, 1928.

Using the Palestine Pound in Different Areas

Even though the new currency law didn't include Transjordan, its government decided to use the Palestine pound too. The Egyptian pound was still used in Transjordan until 1930.

All the coins and banknotes had words in three languages: Arabic, English, and Hebrew. The Hebrew writing included a special short form for "Land of Israel."

What Happened After the British Mandate Ended?

The Palestine Currency Board stopped working in May 1948. This was when the British Mandate ended. But the Palestine pound continued to be used for a while in different places:

• Israel started using the Israeli lira in 1952. New banknotes were printed by the Anglo-Palestine Bank in 1948.
• Jordan began using the Jordanian dinar in 1949.
• In the West Bank, the Palestine pound was used until 1950. Then, the West Bank became part of Jordan, and the Jordanian dinar became the official money. Today, both the Jordanian dinar and the Israeli shekel are used there.
• In the Gaza Strip, the Palestine pound was used until April 1951. The Egyptian pound then took its place.

Since the mid-1980s, the main money in the West Bank has been the Israeli shekel and the Jordanian dinar. The shekel is used for most everyday shopping. The dinar is often used for saving money or buying expensive items. The US dollar is also sometimes used for savings and buying things from other countries.

In Gaza, the shekel is the main money. When Egypt controlled Gaza (1948–1956), the Egyptian pound was mostly used. After Israel took control in 1956, the Israeli lira became the only legal money. This made the lira, and later the shekel, the main currency in Gaza.

Today, the Palestinians are not allowed to create their own separate currency. Using two different currencies can sometimes make things more complicated because their values can change.

Palestine Pound Coins

In 1927, coins were made in values of 1, 2, 5, 10, 20, 50, and 100 mils. The 1 and 2 mil coins were made of bronze. The 5, 10, and 20 mil coins had a hole in the middle and were made of a metal called cupro-nickel. During World War II, these were also made of bronze. The 10 mil coin was also called a grush. The 50 and 100 mil coins were made of silver.

The last coins for everyday use were made in 1946. Any coins dated 1947 were melted down.

Palestine pound Coinage
Issued by the Palestine currency Board
Image	Value	Technical parameters			Description			Date of first issue	Dated years of issue
		Diameter	Mass	Composition	Edge	Obverse	Reverse
	1 mil	21 mm	3.23 g	Bronze	Plain	"Palestine" in Arabic, English, and Hebrew, year of minting. In Hebrew; also mentions in the acronym (א״י) for Eretz Yisrael (Land of Israel).	Value in Arabic, English, and Hebrew, olive sprig	1927	1927, 1935, 1937, 1939, 1940, 1941, 1942, 1943, 1944, 1946
	2 mils	28 mm	7.77 g						1927, 1941, 1942, 1945, 1946
	5 mils	20 mm	2.91 g	Cupro-nickel			Value in Arabic, English, and Hebrew		1927, 1934, 1935, 1939, 1941, 1946
	5 mils	20 mm	2.9	Bronze				1942	1942, 1944
	10 mils	27 mm	6.47 g	Cupro-nickel				1927	1927, 1933, 1934, 1935, 1937, 1939, 1940, 1941, 1942, 1946
	10 mils	27 mm	6.47	Bronze				1942	1942, 1943
	20 mils	30.5 mm	11.33 g	Cupro-nickel				1927	1927, 1933, 1934, 1935, 1940, 1941
	20 mils	30.5 mm	11.3	Bronze				1942	1942, 1944
	50 mils	23.6 mm	5.83 g	720‰ Silver	Reeded	"Palestine" in Arabic, English, and Hebrew, year of minting, olive sprig. In Hebrew; also mentions in the acronym (א״י) for Eretz Yisrael (Land of Israel).		1927	1927, 1931, 1933, 1934, 1935, 1939, 1940, 1942, 1943
	100 mils	29 mm	11.66 g
Issued by the State of Israel
Image	Value	Technical parameters			Description			Date of first issue	Dated years of issue
		Diameter	Mass	Composition	Edge	Obverse	Reverse
	1 pruta	21 mm	1.3 g	Aluminum	Plain	Anchor; "Israel" in Hebrew and Arabic. The design is based on a coin of Alexander Jannaeus (76-103 BCE).	The denomination "1 Pruta" and the date in Hebrew; two stylized olive branches around the rim.	25 October 1950	5709 (1949)
	5 pruta	20 mm	3.2 g	Bronze		Four-stringed lyre; "Israel" in Hebrew and Arabic. The design is based on a coin from the Bar-Kochba Revolt (132-135CE).	The denomination "5 Pruta" and the date in Hebrew; two stylized olive branches around the rim.	28 December 1950
	10 pruta	27 mm	6.1g			Two-handled amphora; "Israel" in Hebrew and Arabic. The design is based on a coin from the Bar-Kochba Revolt (132-135CE).	The denomination "10 Pruta" and the date in Hebrew; two stylized olive branches around the rim.	4 January 1950
	25 mil	30 mm	3.8 g	Aluminum		Cluster of grapes, based on coins struck during the Bar-Kochba Revolt (132-135 CE); "Israel" in Hebrew above and in Arabic below.	The denomination "25 Mil" in Hebrew and Arabic; date in Hebrew below; two stylized olive branches around, based on coins struck during the Bar-Kochba Revolt (132-135 CE).	6 April 1949	5708 (1948), 5709 (1949)
	25 pruta	19.5 mm	2.8 g	Cupro-nickel	Reeded		Value and date in Hebrew within wreath.	4 January 1950	5709 (1949)
	50 pruta	23.5 mm	5.69 g			A Branch of Grape Leaves.	Value and date within wreath made up of two stylized olive branches that for a circle around perimeter.	11 May 1949
	100 pruta	28.5 mm	11.3 g			Date palm tree with seven branches and two bunches of dates. Country name is listed in Hebrew and Arabic.	Value and date in Hebrew within wreath of stylized olive branches.	25 May 1949
	250 pruta	32.2 mm	14.1 g			Three palm branches; "Israel" in Hebrew and Arabic. The design is based on a coin minted during the Great Revolt (66 - 70 CE).	The denomination "250 Pruta" and the date in Hebrew; two stylized olive branches around the rim.	11 October 1950
These images are to scale at 2.5 pixels per millimetre. For table standards, see the coin specification table.

Palestine Pound Banknotes

On November 1, 1927, the Palestine Currency Board also introduced banknotes. These were in values of 500 mils, £P1, £P5, £P10, £P50, and £P100. The latest date found on these notes was August 15, 1945.

Palestine pound Banknotes
Issued by the Palestine currency Board
Image		Value	Dimensions	Main Colour	Description			Date of first issue	Quantity circulated at the end of the Mandate
Obverse	Reverse				Obverse	Reverse	Watermark
		500 mils	127 × 76 mm	Purple	Rachel's Tomb	Citadel and Tower of David	Olive sprig	1 September 1927	1,872,811
		£P1	166 × 89 mm	Yellowish green	Dome of the Rock				9,413,578
		£P5	191 × 102 mm	Red	Tower of Ramla				3,909,230
		£P10		Blue					2,004,128
		£P50		Purple					20,577
		£P100		Green					1,587
"Palestine" in Arabic, English, and Hebrew. In Hebrew; also mentions in the acronym (א״י) for Eretz Yisrael (Land of Israel).
Issued by the Anglo-Palestine Bank (State of Israel)
Image		Value	Dimensions	Main Colour	Description			Date of
Obverse	Reverse				Obverse	Reverse		Issue	Ceased to be legal tender
		500 mils	148 x 72 mm	Grey-pink	Guilloches; the denomination and "The Anglo-Palestine Bank Limited" in Hebrew and English.	Guilloches; the denomination and "The Anglo-Palestine Bank Limited" in Arabic and English.		18 August 1948	23 June 1952
		£P1	100 x 75 mm	Blue-green
		£P5	105 x 68 mm	Brown
		£P10	150 x 80 mm	Red
		£P50	159 x 84 mm	Violet

The £P100 banknote was worth a lot. It was equal to about 40 months of pay for a skilled worker in Palestine. In late 1947, just before the British Mandate ended, there were 1,590 of these £P100 notes in use.

More About Currencies

• British currency in the Middle East
• Economy of Israel
• Economy of the Palestinian territories
• Economy of Jordan