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The island of Alderney has its own currency, which by law must be pegged to that of the United Kingdom (see pound sterling).
Schedule 2 of the Government of Alderney Law provides that the States of Alderney may, by Ordinance, prescribe "the legal currency and denominations of the legal currency, so however that that currency, and those denominations shall be the same in Alderney as in the United Kingdom; and prescribing those notes and coins the tender of which is a legal tender of the payment of money".
In normal use in Alderney, Guernsey and Bank of England banknotes and coins circulate side by side year round, while in the summer tourist season, Jersey notes and coins are also common, as well as Scottish and occasionally even Manx or Northern Irish notes.