British pound sterling Currency

Overview of Currency

Description 

The official currency of the United Kingdom is the Pound Sterling or GBP. The Pound is also used in Jersey, Guernsey, Gibraltar, the Isle of Man, South Georgia, the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha. The British Pound is symbolized as £, and the GBP is subdivided into 100 pence. The pound sterling is one of the oldest currencies continuously in use and is the fourth most traded currency in the foreign exchange market after the US dollar, Japanese Yen, and euro. 

Economy 

• The UK economy consists of England, Scotland, Wales, and Northern Ireland, making it a highly developed social market. The main sectors vary from construction and manufacturing to financial and business services, along with tourism. 
• The United Kingdom is the sixth-largest economy in the world, with a gross domestic product (GDP) valued at $2.83 trillion in the year 2019. 
• In June 2016, the United Kingdom made the decision to leave the European Union (EU). It was called “Brexit” (abbreviation for British exit), which came into effect on 31st January, 2020. 
• Following the 2016 referendum to leave the EU, few organizations have predicted that the lack of certainty may impact the UK economy negatively in the short term. However, the actual economic impact of Brexit itself is still not clear. 

History 

• The Bank of England serves as the central bank for the British Pound sterling, responsible for issuing banknotes and regulating note issuance by private banks in Northern Ireland and Scotland.
• The introduction of the first paper money occurred in 1694 after the Bank of England was established. 
• Since the Decimal day in 1971, the British pound sterling has been subdivided into 100 pieces (denoted on coinage, as “new pence” until 1981). The symbol for the penny coin is “p”, so an amount like 20p (£0.20) is typically pronounced “twenty pee”, although the proper pronunciation is “twenty pence”.
• Although the United Kingdom had the option to adopt the euro in 1999, it ultimately decided not to do the same.

Trivia 

• The full official name, “pound sterling,” is mainly used in formal situations, mainly when it is important to differentiate the British pound currency from other currencies that have the same name. Some nations that do not use the sterling also have currencies known as the pound.
• A popular slang term for GBP is “quid”. 
• In foreign exchange markets, the exchange rate of the pound sterling against the US dollar is commonly referred to as “cable”.