When British forces entered Jerusalem in December 1917, Palestine found itself at a crossroads. The Ottoman financial system had collapsed, and a bewildering mixture of currencies — Ottoman, Egyptian, and British — circulated simultaneously, creating confusion and economic instability across the region.
The solution came in 1927 with the establishment of the Palestine Currency Board, a body created specifically to issue and manage a unified currency for Mandatory Palestine. The notes it produced — the Palestine Pound — became one of the most distinctive and historically significant currencies ever issued.
The Egyptian Pound in Palestine — 1917 to 1927
When British forces took control of Palestine in December 1917, the Ottoman financial system collapsed overnight. To stabilise the economy, Britain turned to Egypt — already under British administration — and introduced the Egyptian pound as the official currency of Mandatory Palestine. For a full decade, from 1917 until 1927, Egyptian banknotes and coins were the everyday currency of Palestinian merchants, farmers and families. The Egyptian pound was pegged to sterling, providing the economic stability the region needed as Britain worked to establish a permanent currency solution. It was only with the creation of the Palestine Currency Board in 1927, and the introduction of the Palestine Pound, that Egyptian currency was gradually withdrawn from circulation.
The Palestine Currency Board — 1927 to 1948
The Palestine Currency Board banknotes are remarkable artefacts for several reasons. They carried text in three languages — Arabic, English and Hebrew — reflecting the complex demographic reality of Mandatory Palestine. Denominations ranged from 500 Mils through to £P100, with each note beautifully designed and printed to the highest standards of the era.
What makes these notes particularly significant historically is that Hebrew script appeared on official Palestinian currency at a time when the Jewish population represented less than seven percent of Palestine’s total inhabitants — a reflection of British political commitments that would shape the region’s future profoundly.
The Palestine Currency Board notes remained in circulation from 1927 until 1948, when the end of the British Mandate and the establishment of the State of Israel brought this chapter of Palestinian monetary history to a close. Today these notes are among the most sought-after collectibles for historians, numismatists and anyone seeking to understand Palestine’s remarkable and complex history.