The Portuguese reached the Gambia in 1445, and the British gained trading rights in the Gambia in 1558, making it their first African settlement. The British established Fort James in 1663 and the French established Albreda in 1681. The 1781 Treaty of Versailles reserved the Gambia River for Britain, though allowing the French to maintain Albreda, which was ceded to Britain in 1857. In 1889, France and Britain agreed that British sovereignty should extend as far as a cannon could shoot from a gunboat navigating the Gambia river, which determined the country’s shape and demarcating the boundaries between Gambia and Senegal. The Gambia became a protectorate in 1894 and an independent nation within the Commonwealth on February 18, 1965, and a republic on April 24, 1970.
Spanish Dollars were used in the Gambia with 4 Spanish Dollars equal to 1 British Pound Sterling to September 30, 1843 and 4.80 Spanish Dollars equal to 1 Pound Sterling until it was demonetized in 1880. British Pounds Sterling (GBP) circulated in the Gambia after it became colonized, but French and Spanish coins were also legal tender, and when the Latin Monetary Union was founded, Belgian, Swiss and Italian 5-franc pieces were also made legal tender until they were demonetized in 1922.
On July 1, 1913, the West African Currency Board began issuing coins, and later banknotes (XWAP) for British West Africa at par with the Pound Sterling. On May 13, 1964, the Gambian Pound (GMP) replaced the West African Pound at par. The Gambian Dalasi (GMD) replaced the Gambian Pound on July 1, 1971 at the rate of 1 Pound equal to 5 Dalasi. The Pound was divisible into 20 Shillings and 240 Pence, and the Dalasi is divisible into 100 Bututs. Banknotes were issued by the Gambia Currency Board from 1965 until 1970, and by the Central Bank of The Gambia from 1971 until today. |
