Some of the Commonwealth currencies will reflect some changes after the recent passing of the United Kingdom’s Queen Elizabeth II. These alterations will mostly be implemented following the country’s mourning period.
We want to share this foreign exchange-related update with our avid readers, especially those residing in countries that are parts of the Commonwealth of Nations.
As holders of Commonwealth currencies, we believe it is significant they read this news today. According to the news posted online by international news outlet CNN, Australia is one of the Commonwealth of Nations’ members whose currency may be impacted by Queen Elizabeth II’s death.
The Australian dollar is one of the Commonwealth currencies. Queen Elizabeth II’s portrait is featured on the AU$5 banknote.
The Reserve Bank of Australia disclosed last Friday, September 9, 2022 – one day after the British sovereign’s passing – that there would be no immediate modification to its banknotes.
Australia’s central bank added that its AU$5 banknotes would possibly stay in circulation for years and would not be withdrawn.
In Canada, its finance minister is responsible for approving the new banknotes’ design. Issuing those banknotes typically takes a few years.
Queen Elizabeth II’s image is featured on plastic C$20 banknotes as the late monarch remains Canada’s head of state.
Amélie Ferron-Craig spoke about the Canadian dollar, which is another of the Commonwealth currencies.
She remarked that the Bank of Canada intends to circulate the present polymer C$20 banknote in the coming years.
The representative for Canada’s central bank cited that there is no legislative requirement to alter the design within a prescribed time when the monarch changes.
Meanwhile, in the United Kingdom, the Bank of England said last Thursday, September 8, 2022 after Queen Elizabeth II passed away, that it would lay out its plans to replace existing banknotes once the mourning period concludes.
The country’s central bank, which prints the banknotes, pointed out that the present banknotes featuring Her Majesty The Queen’s image will carry on being legal tender.
The Royal Mint, which makes the United Kingdom’s coins, also disclosed that it would make an announcement in due course regarding the possible changes they will infuse into the coins.
In a statement on its portal, it remarked that the coins bearing the deceased monarch’s image stay legal tender and in circulation.
The Royal Mint also cited that these coins’ production will carry on as usual during this time of respectful mourning.
The Bank of England and the Royal Mint reportedly face the sizeable task of withdrawing the circulating currency and replacing it with money featuring the portrait of the new monarch, King Charles III.
Over 4.7 million banknotes with the late Queen Elizabeth II’s face on them are currently circulating in the United Kingdom.
They are collectively worth £82 billion or US$95 billion at the time of writing this report, per the Bank of England.
The Royal Mint also said that approximately 29 billion coins are in circulation. The new money will likely be introduced gradually and coexist as legal tender with the old coins and banknotes for some time.
The Commonwealth currencies are the legal tender of several nations formerly under British rule. At the time of writing this news, 56 territories make up the political association, with the vast majority of them being former British Empire territories.
The Commonwealth currencies feature the late Queen Elizabeth II’s portrait emblazoned on them, including the coins and banknotes.