DECIMALISATION

In the management of currencies, 'decimalisation' (or 'decimalization') is the process of converting from traditional denominations to a "decimal" system, usually with two units differing by a factor of one hundred.
The logical appeal of decimalisation in general has generally been effective much sooner as to currency than as to physical measurements, and few countries have coupled the two processes.
All countries that had non-decimal currencies have decimalised, at least in practice.

Contents

Formal decimalisations

France

Canada

UK and Ireland

Malta decimalised its currency in 1972.

£sd conversion

Rupee-anna-paisa-pie conversion

De facto decimalisation

Decimalisation experience and introduction of the euro

See also

External links

Formal decimalisations

Russia

Russia was the first country to convert to a decimal currency. In 1710, Peter the Great set the ruble equal to 100 kopecks in a series of reforms to modernise Russia.

The United States

The United States introduced decimal currency with the dollar in 1792 (adopting only the currency aspects of a more comprehensive decimal system of measurement proposed by Thomas Jefferson).

France

In France, decimalisation of the coinage was accompanied by metrication of other measures, introducing the franc in 1803 to replace the Livre tournois, abolished during the Revolution.
France introduced decimalisation on a number of countries that it occupied during the Napoleonic period.

Canada

Decimalization in Canada was complicated by the different jurisdictions before Confederation. However, the first coin for Canada, in 1858, was a decimal one cent piece.

Sri Lanka

Sri Lanka (known in the West as Ceylon at that time) decimalised in 1869.

India

India changed from the rupee, anna, pie system to decimal currency on 1 April 1957. Pakistan followed in 1961.

South Africa

South Africa decimalised in 1961, introducing the rand as the new unit of currency.

Australia & New Zealand

When Australia decimalised in 1966, the new Australian dollar was fixed at ten shillings (i.e. half an Australian pound). A similar strategy was followed in New Zealand in 1967, with the introduction of the New Zealand dollar.

UK and Ireland

The United Kingdom and the Republic of Ireland decimalised the pound sterling and the Irish pound, respectively, on Decimal Day, 15 February 1971.

Malta

Malta decimalised its currency in 1972.

Non Currency Cases

In the special context of stating the prices of stocks, traded almost always in blocks of one hundred or more shares and usually in blocks of many thousands, stock exchanges in the U.S. used eighths or sixteenths of dollars, until converting to decimals between 2000 and 2001.

£sd conversion

In places where the £sd was used, the decimalisation process either defines 1 new penny = pound, where the main unit pound is not changed; or a new main unit, dollar, is introduced as half pound, and 1 cent = dollar. The following table shows the conversion of common denominations of coins of the £sd system.

Common name	Amount	New £p	$¢
Halfpenny	d.	p ≈ 0.208p	¢ ≈ 0.417¢
Penny	1d.	p ≈ 0.417p	¢ ≈ 0.833¢
Threepence	3d.	p	¢
Sixpence	6d.	p	5¢
Shilling	1/-	5p	10¢
Florin	2/-	10p	20¢
Half crown	2/6	p	25¢
Crown	5/-	25p	50¢
Half sovereign	10/-	50p	$1
Sovereign	£1	£1	$2

Rupee-anna-paisa-pie conversion

In India, Pakistan, and other places where a system of 1 rupee = 16 annas = 64 paise = 192 pies was used, the decimalisation process defines 1 new paisa = rupee. The following table shows the conversion of common denominations of coins issued in modern India and Pakistan. Bold denotes the actual denomination written on the coins

Rupee	Anna	Paisa	Pie	New paisa
	''		'1'	≈ 0.5208
		''		= 0.78125
		'1'	3	= 1.5625
	''	2	6	= 3.125
	'1'	4	12	= 6.25
	'2'	8	24	= 12.5
''	'4'	16	48	25
''	'8'	32	96	50
'1'	16	64	192	100

De facto decimalisation

Mauritania and Madagascar theoretically retain currencies with units whose values are in the ratio five to one: the Mauritanian ouguiya (MRO) is equivalent to five khoums, and the Malagasy ariary (MGA) to five iriambilanja.
In practice, however, the value of each of these four units is quite small: as of 2005, the MRO is traded against the euro at about 330 to one, and the MGA at about 2300 to one. In each of these countries, the smaller denomination has fallen out of use.

Decimalisation experience and introduction of the euro

Before the introduction of physical euro notes and coins on 1 January 2002, the plans and experiences of various decimalisations, particularly decimalisation in the United Kingdom in 1971, were studied by the European Central Bank because many of the lessons could be learnt and applied to the introduction of the euro. For example, on how to educate the public (particularly the elderly), how long the transition was likely to take, the likely speed of uptake of the new currency, the likely effects on inflation for those currencies where one cent was greater in value than the smallest coin in circulation before the transition and the likely criminal activities which might be attempted during the transition period.

See also

★ British coinage

★ Non-decimal currencies

External links

★ Plan for establishing uniformity in the Coinage, Weights, and Measures of the United States: text of a report to the U.S. House of Representatives by Thomas Jefferson.