DRAFT (22. 3.78)
TO OFFICERS ADMINISTERING GOVERNMENTS OF
OVERSEAS DEPENDENT TERRITORIES
NUMISMATIC COIN ISSUES IN THE DEPENDENT TERRITORIES:
Report of the Bank of England Dated 26 January 1978
Introduction. The following is a summarised version of the
Report which was drawn up after analysing information from governments
and central monetary institutions of certain overseas territories and
after consultation with the Royal Mint.
In the context of the Report the term "numismatic coins" is
used to describe those coins minted and issued primarily for collectors
and investors but which remain legal tender in the country of origin.
They are not intended for normal circulation within the territory of
issue, but are mostly sold directly to overseas customers. The coins
are usually struck in precious metals and carry distinctive designs (not
incorporated in everyday circulatory coinage) which frequently
commemorate notable events or personalities. The quality of their
finish is superior to that of circulatory coinage and is produced to two
standards
and "proof"
"brilliant uncirculated" (otherwise referred to as "specimen")
see Annex I: Glossary of Terms. Although such coins are
not for use in normal commercial transactions it is an essential part of
their definition that they should have legal tender status.
The principles of currency issue in dependent territories.
Redeemability or convertibility of both notes and coins of a local
currency in terms of an external currency (originally sterling, now more
usually US dollars) has traditionally been regarded as a fundamental
condition of issue that is essential for confidence in the currency of
dependent territories. Even though the power to surrender notes and
coins for redemption has been confined in practice to the commercial
banks, and even though the power of individual holders of local currency