Decimalisation


Decimalisation or decimalization is the conversion of a system of currency or of weights and measures to units related by powers of 10.
Most countries have decimalised their currencies, converting them from non-decimal sub-units to a decimal system, with one basic currency unit and sub-units that are valued relative to the basic unit by a power of 10, most commonly 100 and exceptionally 1,000, and sometimes at the same time, changing the name of the currency and/or the conversion rate to the new currency.
Today, only two countries have de jure non-decimal currencies, these being Mauritania and Madagascar : however, these currencies are de facto decimal as the value of both currencies' main unit is now so low that the sub-units are too small to be of any practical use, and coins of these sub-units are no longer used.
Russia was the first country to convert to a decimal currency when it decimalised under Tsar Peter the Great in 1704, resulting in the silver ruble being equal to 100 copper kopeks.
For weights and measures, this is also called metrication, replacing traditional units that are related in other ways, such as those formed by successive doubling or halving, or by more arbitrary conversion factors. Units of physical measurement, such as length and mass, were decimalised with the introduction of the metric system, which has been adopted by almost all countries. Thus, a kilometre is 1,000 metres, while a mile is 1,760 yards. Electrical units are decimalised worldwide.
Common units of time remain undecimalised. Although an attempt to decimalise them was made during the French Revolution, this proved to be unsuccessful and was abolished by Napoleon eleven years later.

Currency decimalisation by region

Decimal currencies have sub-units based on a power of 10. Most sub-units are one-100th of the base currency unit, but currencies based on 1,000 sub-units also exist in several Arab countries.
Some countries changed the name of the base unit when they decimalised their currency, including:
New unit=×Old unitYear
German gold mark=Vereinsthaler1873
Danish krone=Danish rigsdaler1875
South African rand=South African pound1961
Australian dollar=Australian pound1966
New Zealand dollar=New Zealand pound1967
Fijian dollar=Fijian pound1969
Nigerian naira=Nigerian pound1973

Europe

In 1534, the kopek of Novgorod was equated to 1/100 of the ruble of Moscow, thus making the Russian ruble Europe's first decimal currency. In the 18th century were introduced the coins and imperial. This was not quite decimal currencies as they are known today, as there were smaller units beneath the kopek itself: the denga and the polushka. After the October Revolution, the Soviet Union transitioned to a purely decimal model by eliminating the non-decimal subdivisions of the kopek.
France introduced the franc in 1795 to replace the livre tournois, abolished during the French Revolution. France introduced decimalisation in a number of countries that it invaded during the Napoleonic period.
The Dutch guilder decimalised in 1817, becoming equal to 100 centen, with the last pre-decimal coins withdrawn from circulation in 1848.
Sweden introduced decimal currency in 1855. The riksdaler was divided into 100 öre. The riksdaler was renamed the krona in 1873.
The Austro-Hungarian Empire decimalised the gulden in 1857, concurrent with its transition from the Conventionsthaler to the Vereinsthaler standard.
Spain introduced its decimal currency unit, the peseta, in 1868, replacing all previous currencies.
Cyprus decimalised the Cypriot pound in 1955, which comprised 1,000 mils, later replaced by 100 cents.
The United Kingdom and Ireland decimalised sterling and the Irish pound, respectively, in 1971.
Malta decimalised the lira in 1972.

The Americas

North America

United States
Decimalisation was introduced into the Thirteen Colonies by the American Revolution, and then enshrined in US law by the Coinage Act of 1792.
Canada
Decimalisation in Canada was complicated by the different jurisdictions before Confederation in 1867. In 1841, the united Province of Canada's Governor General, Lord Sydenham, argued for establishment of a bank that would issue dollar currency. Francis Hincks, who would become the Province of Canada's Prime Minister in 1851, favoured the plan. Ultimately the provincial assembly rejected the proposal. In June 1851, the Canadian legislature passed a law requiring provincial accounts to be kept decimalised as dollars and cents. The establishment of a central bank was not touched upon in the 1851 legislation. The British government delayed the implementation of the currency change on a technicality, wishing to distinguish the Canadian currency from the United States' currency by referencing the units as "Royals" rather than "Dollars". The British delay was overcome by the Currency Act of 1 August 1854. In 1858, coins denominated in cents and imprinted with "Canada" were issued for the first time.
Decimalisation occurred in:
DateNotes
Province of Canada1 August 1854
Nova Scotia1 July 1860Ordered its first coinage in 1860, but the coins were not shipped by the Royal Mint until 1862
New Brunswick1 November 1860Like Nova Scotia, the coins were received in 1862
Newfoundland1866Took effect in early 1865 and had different coinage from 1865 to 1947
Vancouver Island1863
British Columbia1865
Manitoba1870
Prince Edward Island1871

The colonial elite, the main advocates of decimalisation, based their case on two main arguments. The first was for facilitation of trade and economic ties with the United States, the colonies' largest trading partner; the second was to simplify calculations and reduce accounting errors.
Mexico
The Mexican peso was formally decimalised in the 1860s with the introduction of coins denominated in centavos; however, the currency did not fully decimalise in practice immediately and pre-decimal reales were issued until 1897.
Bermuda
Bermuda decimalised in 1970, by introducing the Bermudian dollar equal to 8 shillings 4 pence.

Caribbean

The rand was introduced on 14 February 1961. A Decimal Coinage Commission had been set up in 1956 to consider a move away from the denominations of pounds, shillings and pence, submitting its recommendation on 8 August 1958. It replaced the South African pound as legal tender, at the rate of 2 rand = 1 pound or 10 shillings to the rand. Australia, New Zealand and Rhodesia also chose ten shillings as the base unit of their new currency.

Oceania

Australia and New Zealand

decimalised on 14 February 1966, with the Australian dollars replacing the Australian pound. A television campaign containing a memorable jingle, sung to the tune of "Click Go the Shears", was used to help the public to understand the changes. New Zealand decimalised on 10 July 1967, with the New Zealand dollars replacing the New Zealand pound.
In both countries, the conversion rate was one pound to two dollars and 10 shillings to one dollar.
£sd$c
£50$100
£10$20
£5$10
£1$2
10/–$1
5/–50c
2/–20c
1/–10c
6d5c
3d2.5c
1.2d1c
1dc

To ease the transition, the new 5-cent, 10-cent and 20-cents coins were the same size and weight, and the new $1, $2, $10 and $20 banknotes were the same colour, as their pre-decimal equivalents. Because of the inexact conversion between cents and pence, people were advised to tender halfpenny, penny and threepence coins in multiples of sixpence during the transition.