Scotland (SS/SCO-Scotland has no ISO codes) and England formed a personal union in 1603 when King James VI of Scotland became King James I of England. Scotland was united with England by Parliamentary act in 1707.
Scotland issued its own pound (SSP) coins until it was united with England in 1707 and English coins became the medium of exchange in Scotland. Under the Stuarts, Scotland issued gold lions (20 shillings) and crowns (22 shillings), silver groats (4 shillings) testoons (4-5 shillings) and ryals (30 shillings) as well as bawbees (6 pence), placks (4 pence) and pennies. In general, 1 Pound Sterling was equal to 12 Pounds Scots. However, Scottish coins were often in short supply, and English, Dutch, Flemish and French coins also circulated in Scotland.
The Bank of Scotland was founded on July 17, 1695, was given a monopoly over banknote issue, and soon began issuing banknotes. A failure by the Bank of Scotland to renew its monopoly, allowed the Royal Bank of Scotland, founded in 1727, to begin issuing its own banknotes. Scottish banks can issue an amount up to the amount of issue in 1845 without any backing (about 3 million Pounds). All other issues require backing at the Bank of England.
Scottish banknotes have never been legal tender, but have always been a legal currency. As a result of bank mergers, the number of issuing banks has declined from ten to three (Bank of Scotland, Clydesdale Bank PLC and Royal Bank of Scotland PLC). The British Pound Sterling (GBP) is legal tender in Scotland. Decimalization was introduced on February 15, 1971. |
