The pound was the currency of Newfoundland until 1865. It was subdivided into 20 shillings, each of 12 pence. The Newfoundland pound was equal to the British pound and British coins circulated, supplemented by locally produced tokens and banknotes. In 1865, the dollar was introduced at a rate of 1 dollar = 4 shillings 2 pence, with the significance being 1 dollar was equal to exactly 50d (i.e. 50 old pence) for precise ease of exchange.