Can Government print its own notes?

Dear Mr Edwardes,

Thank you for your Freedom of Information request. I write to confirm receipt of your request and to let you know that it is receiving attention. If you have any enquiries regarding your request do not hesitate to contact us.

Regards
Jhenene Simpson | Correspondence & Enquiry Unit, HM Treasury, 2/W1, 1 Horse Guards Road, London, SW1A 2HQ |

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Dear Mr Edwardes

Thank you for your email of 25 March 2011 regarding banknotes, which has been passed to me to reply.

You asked who is allowed to print money. Banknote issuance is usually a function reserved for central banks – for the UK, this is the Bank of England. The UK is highly unusual, however, in allowing a number of commercial banks to issue their own banknotes.

Under the Bank Charter Act 1844, the Bank Notes (Scotland) Act 1845 and the Bankers (Ireland) Act 1845, only the banks that had issuing rights at the time of the enactment of that legislation, and had sought the necessary certifications to continue issuing in accordance with those enactments, are permitted to issue banknotes in Scotland and Northern Ireland. Only the Bank of England may issue banknotes in England and Wales.

Of the original 21 banks authorised to issue banknotes in Scotland and Northern Ireland, only 7 now remain. In Scotland they are: Bank of Scotland; Clydesdale; and Royal Bank of Scotland. In Northern Ireland they are: Bank of Ireland; First Trust Bank; Northern Bank; and Ulster Bank.

Your email suggested that the Bank of England is privately owned by the Rothschilds family. This is not the case. Under the Bank of England Act 1946, the entire stock of the Bank of England was transferred to HM Treasury.

Further information on the Bank of England and banknotes is available on the Bank’s website: www.bankofengland.co.uk/banknotes

I hope you find this response helpful.

Sarah Gannaway

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Thank you for your message. I am at a team training day on Wednesday, 13th
April and will reply to your message on my return. If urgent you can try
to reach me on my mobile, [mobile phone number].

If your message contains an information request under the Freedom of
Information Act 2000, please direct your request to the Treasury's Central
Enquiry Unit email address: [email address].

Kind regards
Sarah Gannaway

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Communications via the GSi may be automatically logged, monitored and/or
recorded for legal purposes.

Thank you for your message. I am at an external meeting until 2pm on
Thursday 8 September.

For NS&I and Bona Vacantia, please contact Zoe McNulty. For Royal Mint and
coinage, Bank of England and banknotes, and gilts registration, please
contact Aleem Wallani. Alternatively, I'll reply to your message on my
return.

If your message contains an information request under the Freedom of
Information Act 2000, please direct your request to the Treasury's Central
Enquiry Unit email address: [email address].

Kind regards
Sarah Gannaway

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Communications via the GSi may be automatically logged, monitored and/or
recorded for legal purposes.

Dear Mr Edwardes,

Thank you for your Freedom of Information request. I write to confirm receipt of your request and to let you know that it is receiving attention. If you have any enquiries regarding your request do not hesitate to contact us.

Regards
Jhenene Simpson | Correspondence & Enquiry Unit, HM Treasury, G/S.2, 1 Horse Guards Road, London, SW1A 2HQ |

Please consider the environment before printing this email.
http://www.hm-treasury.gov.uk

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Dear Mr Edwardes

Please find attached response to your FoI request.

 

James

Information Rights

 

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