Totnes Pound

AAA

DEFINITION of 'Totnes Pound'

An alternative currency of Totnes, in Devon, United Kingdom. The Totnes pound is intended to support the local economy, and is an initiative of the Transition Town Totnes Economics and Livelihoods group. The currency was launched in March 2007, and has a value of one Totnes pound to one pound sterling. The currency is backed by sterling that is held in a bank account. The launching group believes that "economic localization is considered to be a key aspect of the transition process, and local currency systems provide the opportunity to strengthen the local economy whilst preventing money from leaking out."

INVESTOPEDIA EXPLAINS 'Totnes Pound'

The benefits of the Totnes pound, as listed on the Transition Town Totnes website, are: To create a stronger local economy by keeping money circulating within the community; to encourage people to think and talk about how they spend money; and to encourage more local trade and encourage tourists to visit local businesses.


The Totnes pound notes (bills) are printed locally on plasticized paper. The Totnes pound has inspired other local currency projects, including the Lewes pound in Lewes, East Sussex.

RELATED TERMS
  1. Fiat Money

    Currency that a government has declared to be legal tender, but ...
  2. Lewes Pound

    A local currency used in Lewes, East Sussex, United Kingdom. ...
  3. Currency

    A generally accepted form of money, including coins and paper ...
  4. Economics

    A social science that studies how individuals, governments, firms ...
  5. Gold Standard

    A monetary system in which a country's government allows its ...
  6. Economy

    The large set of inter-related economic production and consumption ...
RELATED FAQS
  1. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Full Answer >>
  2. Where did the term 'pip' in currency exchange come from?

    The term pip is an acronym for percentage in point or price interest point. It measures a unit of change within a pair of ... Read Full Answer >>
  3. What is the difference between pips, points, and ticks?

    Point, tick and pip are terms used to describe price changes in the stock market and other markets. While traders and analysts ... Read Full Answer >>
  4. What are the nations with the lowest PPP (purchasing power parity) with respect to ...

    Purchasing power parity (PPP) is one of several economic indicators used to compare how much goods cost from country to country. ... Read Full Answer >>
  5. What's the difference between bid-ask spread and bid-ask bounce?

    Although both the bid-ask spread and the bid-ask bounce relate to the bid-ask price of a stock or other investment, they ... Read Full Answer >>
  6. Are Downside Tusuki Gap patterns important when trading forex pairs?

    The most heavily intertraded national currencies on forex markets are often referred to as "commodity pairs," "the majors" ... Read Full Answer >>
Related Articles
  1. Forex Education

    Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
  2. Personal Finance

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  3. Active Trading

    The Advantage Of Intermarket Analysis

    Analyzing a variety of markets around the world can provide powerful insight into trading opportunities.
  4. Forex

    The Top 10 Forex Brokers Regulated In The UK

    Overview of the regulation of forex, the Financial Conduct Authority (FCA) and the top 10 UK forex brokers that are FCA regulated.
  5. Investing News

    UK Tech Startups: Proving To Be More Than Hype

    Over the last few years, the explosion of tech startups in the UK has been grabbing an increasing amount of attention from investors around the world.
  6. Mutual Funds & ETFs

    How To Start A Hedge Fund In The UK

    Starting a new hedge fund in the United Kingdom is more complex than in the United States. We discuss UK laws and regulations for starting a new hedge fund.
  7. Personal Finance

    Master's Degrees: The US vs. The UK

    When deciding whether to pursue a master's degree in the US or UK, consider degree structure, cost, and quality of education.
  8. Forex

    Understanding Currency Carry Trade

    A currency carry trade is a long-term investment strategy used primarily by large institutional investors. The purpose is to make a profit over time from differences in interest rates between ...
  9. Economics

    What Must The UK Do To Keep North Sea Oil Afloat?

    The UK government may need to take drastic action to ensure the viability of UK North Sea offshore oil production amid high costs and shrinking margins.
  10. Economics

    Analyzing Risks On The Upcoming UK General Elections

    Rising UK political risk keeps investors funds on the sideline.

You May Also Like

Hot Definitions
  1. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  2. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  4. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  5. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  6. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center