The currency notes of the Palestine Currency Board were introduced on Monday, 1 November 1927, and included the denominations of 500 mils (£P½), and £P1, £P5, £P10, £P50 and £P100. These were the first currency notes issued for Palestine.
This series of currency notes ended up being the only series, and throughout all the years of the Mandate and the activity of the Currency Board, notes were issued with no changes in design, only the dates and the signatures of Board members.
Value of Notes in Circulation in £P
Fiscal year
|
500 mils |
£P1 |
£P5 |
£P10 |
£P50 |
£P100 |
Total |
Increase/Decrease
|
1928 |
206,000 |
765,000 |
410,000 |
160,000 |
98,000 |
53,500 |
1,692,500 |
0.00% |
1929 |
161,769 |
731,712 |
402,935 |
165,050 |
98,150 |
26,300 |
1,585,916 |
-6.30% |
1930 |
153,577 |
888,043 |
562,920 |
225,080 |
97,200 |
21,600 |
1,948,420 |
22.86% |
1931 |
104,385 |
999,943 |
648,770 |
231,880 |
88,350 |
12,000 |
2,085,328 |
7.03% |
1932 |
117,779 |
985,514 |
643,815 |
244,710 |
76,850 |
9,500 |
2,078,168 |
-0.34% |
1933 |
181,679 |
1,164,856 |
751,825 |
310,960 |
70,200 |
8,400 |
2,487,920 |
19.72% |
1934 |
254,645 |
1,532,740 |
1,226,075 |
564,270 |
68,250 |
5,600 |
3,651,580 |
46.77% |
1935 |
297,599 |
1,839,844 |
1,611,575 |
958,100 |
90,150 |
11,900 |
4,809,168 |
31.70% |
1936 |
295,610 |
2,025,230 |
1,974,355 |
1,188,340 |
136,700 |
44,700 |
5,664,935 |
17.79% |
1937 |
301,909 |
2,031,230 |
1,701,355 |
962,340 |
76,200 |
20,600 |
5,093,634 |
-10.08% |
1938 |
298,509 |
1,926,530 |
1,484,355 |
734,340 |
53,400 |
14,700 |
4,511,834 |
-11.42% |
1939 |
384,854 |
2,457,821 |
1,949,245 |
1,046,470 |
170,200 |
23,800 |
6,032,390 |
33.70% |
1940 |
477,825 |
2,785,821 |
2,581,535 |
1,686,090 |
295,800 |
14,600 |
7,841,671 |
29.99% |
1941 |
639,717 |
3,716,346 |
3,014,890 |
2,154,980 |
611,050 |
13,500 |
10,150,483 |
29.44% |
1942 |
705,698 |
5,464,702 |
3,766,665 |
2,603,300 |
575,250 |
13,500 |
13,129,115 |
29.34% |
1943 |
1,125,206 |
9,893,099 |
7,496,760 |
5,687,490 |
802,400 |
46,100 |
25,051,055 |
90.81% |
1944 |
932,057 |
12,494,508 |
11,564,275 |
9,228,930 |
1,092,000 |
75,700 |
35,387,470 |
41.26% |
1945 |
712,049 |
11,449,583 |
15,534,205 |
13,626,730 |
1,208,500 |
145,700 |
42,676,767 |
20.60% |
1946 |
843,544 |
9,579,528 |
16,762,940 |
16,021,280 |
1,165,000 |
142,200 |
44,514,492 |
4.31% |
1947 |
854,956 |
8,928,469 |
17,127,660 |
17,010,660 |
1,235,500 |
179,500 |
45,336,745 |
1.85% |
1948 |
936,406 |
9,413,578 |
19,546,150 |
20,041,280 |
1,028,850 |
158,700 |
51,124,964 |
12.77% |
1949 |
589,362 |
3,795,913 |
10,156,100 |
8,391,630 |
411,450 |
85,400 |
23,429,855 |
-54.17% |
1950 |
172,445 |
2,334,607 |
4,957,170 |
7,364,355 |
332,050 |
52,500 |
15,213,127 |
-35.07% |
1951 |
105,263 |
746,913 |
1,531,295 |
1,959,930 |
73,500 |
7,500 |
4,424,401 |
-70.92% |
1952 |
68,533 |
225,744 |
126,470 |
160,570 |
20,300 |
1,600 |
603,217 |
-86.37% |
At the end of the first fiscal year of the operation of the Palestine Currency Board with the introduction of new notes (31 March 1928), the value of the notes in circulation was £P1,692,500. At the end of the last fiscal year of the Currency Board’s activity (31 March 1952), the value of the notes in circulation was £P603,217.
The peak value of the notes in circulation was recorded surprisingly in 1948, and stood at £P51,124,964. This statistic can be explained by the large amount of money poured into Palestine for the payment of salaries for government employees immediately prior to the disbanding of the government, alongside reserves sent to the Amman branch of the Ottoman Bank as part of its conversion to a Board Agent (see Chapter 10). The low point in value of notes in circulation was recorded in 1952, the last year of the Board’s operation.
The peak of increase of value of the notes in circulation was recorded in 1943, with the incredible increase of 90.81%, almost double that of the previous year. As stated above, General Montgomery’s victory brought a sigh of relief and a feeling that the war was moving away from the area. Public confidence in the banks was slowly reviving and the increase of cash deposits in the banks led in turn to an increase of cash in circulation. The lowest point of increase of value of the notes in circulation, 1952, showed a decrease of 86.37%.
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Number of Notes in Circulation
Fiscal year
|
500 mils |
£P1 |
£P5 |
£P10 |
£P50 |
£P100 |
Total |
Increase/Decrease
|
1928 |
412,000 |
765,000 |
82,000 |
16,000 |
1,960 |
535 |
1,277,495 |
0.00% |
1929 |
323,538 |
731,712 |
80,587 |
16,505 |
1,963 |
263 |
1,154,568 |
9.62%- |
1930 |
307,154 |
888,043 |
112,584 |
22,508 |
1,944 |
216 |
1,332,449 |
15.41% |
1931 |
208,770 |
999,943 |
129,754 |
23,188 |
1,767 |
120 |
1,363,542 |
2.33% |
1932 |
235,558 |
985,514 |
128,763 |
24,471 |
1,537 |
95 |
1,375,938 |
0.91% |
1933 |
363,358 |
1,164,856 |
150,365 |
31,096 |
1,404 |
84 |
1,711,163 |
24.36% |
1934 |
509,290 |
1,532,740 |
245,215 |
56,427 |
1,365 |
56 |
2,345,093 |
37.05% |
1935 |
595,198 |
1,839,844 |
322,315 |
95,810 |
1,803 |
119 |
2,855,089 |
21.75% |
1936 |
591,219 |
2,025,230 |
394,871 |
118,834 |
2,734 |
447 |
3,133,335 |
9.75% |
1937 |
603,818 |
2,031,230 |
340,271 |
96,234 |
1,524 |
206 |
3,073,283 |
-1.92% |
1938 |
597,018 |
1,926,530 |
296,871 |
73,434 |
1,068 |
147 |
2,895,068 |
-5.80% |
1939 |
769,708 |
2,457,821 |
389,849 |
104,647 |
3,404 |
238 |
3,725,667 |
28.69% |
1940 |
955,650 |
2,785,821 |
516,307 |
168,609 |
5,916 |
146 |
4,432,449 |
18.97% |
1941 |
1,279,434 |
3,716,346 |
602,978 |
215,498 |
12,221 |
135 |
5,826,612 |
31.45% |
1942 |
1,411,396 |
5,464,702 |
753,333 |
260,330 |
11,505 |
135 |
7,901,401 |
35.61% |
1943 |
2,250,411 |
9,893,099 |
1,499,352 |
568,749 |
16,048 |
461 |
14,228,120 |
80.07% |
1944 |
1,864,113 |
12,494,508 |
2,312,855 |
922,893 |
21,840 |
757 |
17,616,966 |
23.82% |
1945 |
1,424,098 |
11,449,583 |
3,106,841 |
1,362,673 |
24,170 |
1,457 |
17,368,822 |
-1.41% |
1946 |
1,687,087 |
9,579,528 |
3,352,588 |
1,602,128 |
23,300 |
1,422 |
16,246,053 |
-6.46% |
1947 |
1,709,912 |
8,928,469 |
3,425,532 |
1,701,066 |
24,710 |
1,795 |
15,791,484 |
-2.80% |
1948 |
1,872,811 |
9,413,578 |
3,909,230 |
2,004,128 |
20,577 |
1,587 |
17,221,911 |
9.06% |
1949 |
1,178,724 |
3,795,913 |
2,031,220 |
839,163 |
8,229 |
854 |
7,854,103 |
-54.39% |
1950 |
344,891 |
2,334,607 |
991,434 |
736,436 |
6,641 |
525 |
4,414,533 |
-43.79% |
1951 |
210,527 |
746,913 |
306,259 |
195,993 |
1,470 |
75 |
1,461,237 |
-66.90% |
1952 |
137,066 |
225,744 |
25,294 |
16,057 |
406 |
16 |
404,583 |
-72.31% |
The peak in the number of notes in circulation was recorded in 1944, and stood at 17,616,966. This number reflected the inflation in Palestine at the end of WWII, and the plethora of circulating notes of lower denominations, particularly the £P1 note – 12,494,508, some 71% of the total amount of notes in circulation. The low point of the amount of notes in circulation was recorded in 1952, the last year of the Board’s operation. The increase and decrease in the amount of notes in circulation was consistent with the date of increase and decrease of the value of the notes in circulation.
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Circulation: £P compared to amount of notes

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Change in circulation: £P compared to amount of notes

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