Sixpence coins were used in the “old money” system of British currency, which existed prior to 1971. A sixpence coin from the final full year of the “old money” system would be worth around 46 cents in today’s American currency.
Specifically, how did the “Old Money” Financial System Function?
From the Norman Conquest in 1066 until the United Kingdom introduced a new monetary system based on tens on February 15, 1971, the British “oId money” system was in use. British currency used to be denominated in pounds, shillings, and pence (the “old money” system) (or pennies). There were six pennies in a sixpence coin. With 12 pence to a shilling and 20 shillings in a pound, the total value of a pound was 240 pence.
For enterprises operating before the widespread availability of calculators, some historians and monetary experts maintain that the “old money” system was more convenient due to the ease with which pounds could be divided into fractions. The United Kingdom, however, started using the decimal system in 1968 and had fully converted by early 1971.
Coins from the ‘Old Money’ System
The “old money” system in Britain had a variety of coins. A farthing was equal to one-fourth of a penny, while a halfpenny (or ha’penny) was, as the name implies, one-half of a penny. They possessed one penny coins as well as threepence coins. Bronze was used for all coins from farthings to pence and threepences.
The larger coins of this system were the sixpence, shilling, two shillings, and half crown, the latter of which was equal to two and a half shillings. Silver was used for production, and the rare crown was worth five shillings.
Incorporating a New System
A new currency system with 100 pence per pound and no shillings was introduced by the British government in 1968. To help the public adjust to the new system when it was introduced in 1971, mints started producing new five penny, ten pence, and fifty pence coins the following year. Many Britons were concerned that a new system would generate chaos, but in the end, nobody seemed to mind.
The old coins were gradually phased out by the government as the country switched to the new decimal system, with the exception of the sixpence. A sixpence coin, for example, was worth two and a half new penny once businesses had switched over to the new system. British citizens were able to make a smooth transition to the new system because businesses rounded up purchases made with old coins to the nearest sixpence and gave customers their change in new pence coins.
Up-to-Date British Pounds
Current British currency consists of eight coins and four paper notes. British currency consists of the penny, the two pence, the five pence, the ten pence, the twenty pound, the fifty pound, the pound, and the two pound coins. The paper money denominations range from 5 pounds to 50 pounds. Current British coins are made primarily of copper with smaller amounts of zinc and nickel. Like their American counterparts, many Britons are beginning to rely less and less on cash and more and more on electronic payment methods like credit and debit cards, contactless cards, and phone payment systems.
What Happens When Countries Use Different Currencies
You learned at the outset of this piece how much one American dollar would be worth in British sixpence. The exchange rate is the only reliable method for determining the relative value of currencies from other countries. When travelling abroad or making an international purchase, knowing the current value of your currency in terms of another currency is essential. At any one time, the exchange rate between the US dollar and the British pound can be 1.33 GBP to $1 USD.
Exchange rates fluctuate all the time, but typically not by a lot. Currencies are traded around the world around-the-clock, every day of the week, and the rate of exchange is based on supply and demand as well as the relative economic health of various countries. Some nations use pegged exchange rates that are never adjusted. It’s important to keep an eye on the exchange rate before booking overseas travel so you know how much of your currency you can swap for local currency.
