The official Falklands currency is the Falkland Pound FKP whose value is set equivalent to that of one British pound GBP. Money can be exchanged at the only bank in the islands which is located in Stanley across from the FIC West store. British pounds will generally be accepted anywhere in the islands and within Stanley credit cards and American currency are also often accepted. On the outlying islands credit cards will probably not be accepted, although British and American currency may be taken; check with the owners in advance to determine what is an acceptable payment method.
It is nearly impossible to exchange Falklands currency outside of the islands, so be sure to exchange all money prior to leaving the islands.