Despite the fact that witches and wizards are able to conjure some truly incredible items and objects, it becomes clear early on in the Harry Potter series that money is not one of those things.
Valuable and unalterable by magic, the currency of the wizarding world is distinct from that of Muggle society. There are no British pounds or American dollars. Instead, they have their own entirely unique and separate economy that runs on a global wizarding currency.
But not all witches and wizards come from magical families. So, how do these individuals get their hands on the currency used to purchase magical items like wands?
In this article, we’ll cover how Muggleborn witches and wizards, like Hermione Granger, are able to convert their Muggle money into the magical currency accepted in the wizarding world.
Before we dive into that, though, let’s first review the different kinds of money that we’re looking at here.
Types of Money in Harry Potter
MUGGLE MONEY
British Pound Sterling
The Granger family, as well as all other witches and wizards born into non-magical families, would’ve only had access to the Muggle currency used within their native country. Since Hermione Granger was born in England—to two successful dentists, I might add—the money her parents would’ve earned would’ve been the British pound sterling.
The pound is, of course, the basic monetary unit of the United Kingdom and can be divided decimally into 100 new pence.
WIZARDING CURRENCY
Knuts, Sickles and Galleons
In the wizarding world, a completely different type of money is used as currency, and comes in the following three denominations:
- Bronze Knuts
- Silver Sickles
- Golden Galleons
The most valuable of the three is—as you may have guessed—the GOLDEN Galleon, with 17 Sickles making up one Galleon, and 29 Knuts equalling one Sickle.
Answers to All Your Questions About Wizarding Money
From the rate of conversion to how a Muggle exchanges currency, this section seeks to answer all of your questions about wizarding money.
What’s the Conversion Rate of a Galleon to a Pound Sterling?
If you’re wondering what the conversion rate is between Muggle money and wizarding money, you’re not alone. There are entire websites dedicated to this exact thing!
Evidently, 1 Galleon is the equivalent of about 5 British pounds.
How Does a Muggle Convert their Pounds to Galleons?
When it comes to HOW Muggleborn witches and wizards exchange their pounds for the magical currency used in Diagon Alley and beyond, the answer is surprisingly simple. They take their money to Gringotts Wizarding Bank, speak with a goblin, and ask for their pounds to be converted into Galleons, Sickles and Knuts.
We actually get a glimpse of the Granger family on their way to do this very errand near the beginning of The Chamber of Secrets…
‘But you’re Muggles!’ said Mr. Weasley delightedly. ‘We must have a drink! What’s that you’ve got there? Oh, you’re changing Muggle money. Molly, look!’ He pointed excitedly at the ten-pound notes in Mr. Granger’s hand.
Harry Potter and the Chamber of Secrets
This, of course, answers how Hermione and her family converted their pounds into Galleons, so that she could buy her school supplies.
What Happens to Muggle Money After It’s Exchanged at Gringotts?
Once Muggles convert their money, where does it go? It’s obviously not circulated into communities like Diagon Alley and Hogsmeade Village, as it has little value there and would not be accepted by shop owners and proprietors.
It also seems unlikely that the goblins of Gringotts would use precious bank space to store it there. Not to mention that Muggles probably never wish to convert their wizarding money back into pounds. Although, I suppose that’s possible.
A lot more probable? The idea that goblins do “dispose” of the money but not by destroying it. After all, Muggle money would still hold value outside of the wizarding community, so it seems doubtful that goblins would simply throw it away. Especially due to goblinkind’s keen interest in money and finances.
Instead, it’s rather amusing to believe that perhaps goblins launder pounds back out into Muggle communities by way of fronts—run by Squibs. Since Squibs have no magical abilities of their own, this type of position would allow them to continue to be a contributing member of the wizarding world, while also being completely integrated into Muggle society.
What do you think? Do you have any ideas on where Muggle money goes after it’s exchanged at Gringotts? Share your thoughts in the comments below!