Falkland Islands
The Falkland Islands (; , ) is an archipelago in the South Atlantic Ocean on the Patagonian Shelf. The principal islands are about east of South America's southern Patagonian coast, and about from the northern tip of the Antarctic Peninsula, at a latitude of about 52°S. The archipelago, with an area of , comprises East Falkland, West Falkland and 776 smaller islands. As a British overseas territory, the Falklands have internal self-governance, and the United Kingdom takes responsibility for their defence and foreign affairs. The Falkland Islands' capital is Stanley on East Falkland.
Economy of the Falkland Islands
Coins and banknotes may only be issued by the Falkland Islands Government with the authorisation of the British Government. Coins for local use were first struck in 1974 and are the same size as the corresponding British coins. There is a flourishing business in the issue of commemorative coins struck on behalf of the Falkland Island Government for collectors – in particular the 2007 series of coins that commemorated the 25th anniversary of the liberation of islands attracted much attention. The Falkland Islands Government (FIG) is required to deposit 110% of the face value of any coins struck on its behalf into its currency fund, thereby effectively backing the Falkland pound with the pound sterling. In the case of commemorative coins that are unlikely to be redeemed, this money represents a long-term investment. In many cases the set-up and production costs are carried by the mint concerned, who pay the FIG a royalty on coins that it sells to collectors.