English Law Principles Relating To Foreign Currency Judgments

Introduction

What is the position under English Law where a plaintiff is seeking to obtain judgment in a currency other than sterling? English Law is fairly flexible and does permit judgments to be expressed in a currency other than sterling. However, the position is not without its complications and injustices and in order to understand the English position it is necessary to look back at the history.

The traditional rule

England has always been a trading nation and has always been used to dealing in a wide variety of currencies and not just its own.

In the 1580s it was an established principle of English Law that the plaintiff could elect whether to demand a debt in a denominated foreign currency or in sterling by way of an action known as "debt in the detinet".