What is the currency in England? Money in England. History of the pound sterling Official currency of Great Britain

The currency of England is pounds sterling, which is divided into 100 pence (singular penny). Bank symbol: GBP. Currently, pounds sterling is the world's reserve currency. This is facilitated by the stable UK economy. At the moment, sterling makes up a third of the world's foreign exchange reserves, despite being inferior to the euro and dollar. Within England itself, both paper notes and coins are in use. Let us remember that Great Britain is one of the few EU countries that refused to switch to the euro and kept its national currency. This is partly due to the fact that the pounds are stable, but on the other hand, the pride of the British people, who wished not to give up their national money, played a role.

The history of the appearance of the English currency

The history of this currency dates back to the time of King Offa of Mercia (East Anglia). He first introduced the silver penny, which became widespread among the Anglo-Saxon states. Subsequently, 1200 years ago, around 775, the first British silver coins appeared. They were minted from a pound of pure silver, which produced 240 coins - a pound sterling. Since then this is the only National currency England.

A little history

From the 8th to the 13th centuries, the penny was the most common coin in England. Even though smaller money existed, people preferred to cut it in half and quarters and use it for change. Very few pennies were minted in gold, and such a coin was considered very rare and was equal to twenty pieces of silver.

Over time, new coins of different denominations were introduced, and accordingly their names: crown, penny (farthing), sovereign and guinea. More and more gold coins began to be minted. At the same time, their value has noticeably decreased. Over time, copper, tin and metal coins were introduced. In 1660, coinage was transformed and forged coins began to be produced. In 1937, coins made of nickel brass were introduced, and in 1947, silver coins were replaced with cupronickel.

Pound decimal system

In 1971 (15 February) the pound sterling was converted to a decimal system to simplify calculations. Shillings and pennies were replaced by a single coin. The pound became equal to 100 pence, which was mostly pronounced "pi". This helped to differentiate between old and new coinage during the transition to the decimal system. And back in 1969, old coins began to be gradually withdrawn from circulation.

The first decimal coins were made of cupronickel, and in 1971 they appeared in bronze, which was later replaced by steel, first coated with copper. The modern penny appeared in 1998. What currency does England currently have from previous coinage? Of the oldest coins, only copper ones remain.

Currency of England: origin of the name, use

Sterling in English language means “pure, good quality.” This is where the name of the English currency came from. The full name in the singular is pound sterling. Used mainly in a formal context or, if necessary, as a distinction from other currencies of a similar name. In everyday life it is reduced to pound or sterling. Sterling is considered the oldest European currency still in circulation.

Coins

The decimal system, which was adopted in England in 1971, is still in effect. Pennies are usually denoted by the letter “p”. What is the currency in England now? Banknotes and coins in denominations of 1, 2, 5, 10, 20 pence. There are both one and two pounds. All coins are minted with a portrait of Elizabeth II, along the edges there is a letter engraving denoting “By the Grace of God, Queen Defender of the Faith.”

On the reverse side of the coins are depicted: the Abbey portcullis, the coat of arms of the Prince of Wales, the thistle, the lion, the Tudor rose, the leek and the symbol of the British Isles. On the two-pound coin, in addition to the abstraction symbolizing the technological development of England, there is an engraving “Standing on the shoulders of giants”. These words belong to Isaac Newton. Crowns can still be found in everyday life. They are considered legal money, just like coins issued by the mint.

English banknotes

England's currency in the form of banknotes was first issued in 1964 by the Bank of England. The first pounds sterling come in denominations of 5, 10, 20 and 50. They all feature Queen Elizabeth II on one side. This is the only monarch whose image was used on banknotes to prevent counterfeiting of banknotes. On the reverse side of the paper pounds are images of various historically significant persons (natives of Great Britain): Elizabeth Fry, Charles Darwin, Edward Elgar, Adam Smith and John Houblon.

England is a state with its own independent currency. The pound sterling is considered the hub currency of the United Kingdom of Great Britain, as well as Northern Ireland and Scotland. The money of England is in circulation in all the lands included in it. The pound sterling has a very old history and is a stable currency on the world market.

The British pound sterling is the oldest currency in the world. Since 1066, silver sterling began to be minted in Britain. In 1158, sterling was introduced by Henry II as the English currency. The currency began to be called the pound in the second half of the 12th century. The first pounds contained 12 shillings, each containing 20 pence. There were 2 forints in one penny. That is, one pound sterling was equal to 240 pence, or 480 forints. This system significantly increased the calculations. The shilling was designated by the letter “s” (from the Latin “solidus”, a Roman coin), the penny by “d” (“denier”, denarius - also a Roman coin).

The £1 coin was minted in 1489. Then pounds were also called gold sovereigns - thanks to the image on the obverse of the king, in other words, the sovereign of all subjects. The obverse depicted Henry VII seated on the throne, and the reverse depicted the coat of arms of England. The sovereigns weighed 15.47 grams and were made from .994 gold.
In 1560, Elizabeth I carried out a monetary reform, which made it possible to avoid the depreciation of coins, but increased inflation. All obsolete coins have been replaced with new ones.
In 1694, the Bank of England began producing paper pounds sterling in the form of banknotes.
In 1816, the gold standard was established in Great Britain, the sovereign became the main monetary unit, having 7.32 grams of pure gold.
The pound sterling occupied a leading position in the world economy as a reserve currency in the 18th and 19th centuries. However, after the Second World War, due to the strengthening of the United States on the world stage, the pound lost its leading position.
In 1971, England, according to the established form, switched to a decimal system - each pound became equal to one hundred pence. Until 1982, coins were minted with the inscription “New”.
In June 1972, a “floating exchange rate” was introduced, which was not supported by the Bank of England, but was formed solely based on the results of trading on the international foreign exchange market.
Due to this, in 1976 the price of one pound sterling fell to less than two dollars, and in 1977 a historical minimum of $1.72 per pound was reached.

Etymology of the name

The British currency has a complex name. Usually only the pound is used, alternatively the British pound can be called, in order to indicate accurately. History dates back to the year 775 when sterling appeared. These were small silver coins, which, among 240 pieces, made up a full pound, a measure of weight in the Anglo-Saxon lands. So it turns out that when paying for goods and services, pounds of silver sterling were transferred. In everyday life, the phrase has been reduced to two words. The Normans who conquered England retained the wording for the currency, but divided it into twenty shillings, each weighing twelve pence. Later in history, the prefix sterling returned.

Pence has been used since the emergence of proper money in English history and in the modern division of the pound sterling. But its weight and share most of the time were calculated using the 12-digit system, which yielded 240 coins in one measure. The now familiar and integral decimal division system entered the UK rather problematically only in the second mid-twentieth century.

Like any progressive currency, there is a symbol for the pound sterling. To establish amounts calculated in pounds, a symbol or even a simplified but equivalent version is used. The symbol is based on the letter L, which fits into the abbreviation LSD (labra, solidi, denarii). Initially, in particular, this was how the division of English monetary units took place in accordance with the established rules that have been preserved since the time of the Roman Empire. Libra is a unit of weight.

Otherwise, the English pound sterling is classified by the letter code GBP (ISO 4217826), which means Great Britain Pound. Other designations that can sometimes be found, such as UKP, are not considered official. Mostly in the share market and accompanying analyst reports, you will see the symbol GBp (GBX), which defines a given amount in pence. By the way, here you can read about the designation of other currencies of the world.

English money of the past

The name of the English currency, pound sterling, reflects the equivalent price of one pound of silver. One pound of silver was minted into 240 pence (pence and penny are the singular and plural forms of the same word). The word sterling means pure, established standard.

Pennies were represented by a d. (from the word dinar, as opposed to the current designation p.), the shilling was denoted by the sign s or 1/-. The penny and shilling signs were written with or without a dot after the letter.

In England, a non-decimal coin system was used for counting money (rather, it is similar to the duodecimal system of calculation: 1 pound = 240 pence):

pound pound or pound sterling = 4 crowns or 20 shillings, or 240 pence)
sovereign [ˈsɔvrin] sovereign = 20 shillings equivalent to 1 pound
guinea [ˈɡini] guinea = 21 shillings
crown crown = 5 shillings
florin [ˈflɔrin] florin = 2 shillings
shilling [ˈʃiliŋ] shilling = 12 pennies
groat [ɡrəut] grout = 4 pennies
penny [ˈpeni] penny = 4 farthings
farting [ˈfɑːtiŋ] farthing = ¼ penny

Current status

Today in England the national currency is the pound sterling, which is equal to one hundred pence. Coins are produced in denominations of 1, 2, 5, 10, 20, 25, 50 pence, as well as larger ones - 1, 2 and 5 pounds. Banknotes are available in denominations of 5, 10, 20 and 50 pounds. One of the sides of the bill is occupied by the image of Elizabeth II, and the other by the image of another outstanding person of England (including Charles Darwin, James Watt, Matthew Bolton, Adam Smith and others).

Certain territories of Britain (in particular, Scotland or Northern Ireland) issue their own paper money with a different design. Although all UK banks must accept them, in practice they are often refused.

Everything that has a connection with the exchange rates of individual countries is relevant today. As for the exchange rate in the UK, it is floating or fluctuating. This means the value of the pound may fluctuate. These characteristics depend on the situation on the foreign exchange market.

The main monetary unit of England is pounds sterling. This monetary unit is now issued as a reserve for the world monetary fund, which is favored by the stability of the UK economy. Now, despite the advantage of the dollar and the euro, sterling accounts for a third of the world's foreign exchange reserves.

In addition, the British are one of the few who categorically refused to switch to a new currency, the euro, within the European Union, trying to preserve the national one.

In Great Britain, not only paper bills are in use, but also coins and pennies. The first time the penny came into use was during the Mercian period, during the reign of King Offa. The first minted coins were made from silver in 775. From one pound of silver it was possible to make 240 coins, which made up the pound sterling.
From the eighth century until the thirteenth century, the penny was considered the most popular coin in Great Britain. In order to handle smaller amounts, people cut pennies into quarters and halves. There were also gold pennies, each of which was equal to 2 tens of silver coins.
Later, other coin names came into use - guinea, sovereign, crown, and also penny or farthing. Coins began to be made from other metals - copper, tin and a mixture of brass and nickel. In the mid-twentieth century, silver coins were replaced by cupronickel coins.
In English, the word sterling means “pure” and refers to the highest grade of this metal. This is exactly how the name of the monetary unit came about, which in everyday life is simply called the pound or sterling. By the way, the pound sterling is the oldest European unit that is still in use.
The modern monetary system today uses the decimal principle, which was introduced in 1971. The first paper money was issued relatively recently - in 1964. Interestingly, historical and cultural figures are often depicted on banknotes. The only monarch whose portrait confirms the authenticity of the banknotes is Elizabeth II.

There are 100 pence in one pound. Designation £, abbreviation GBP. If we talk about the global currency reserves, today the currency ranks third, second only to the euro and the dollar.

In foreign markets it is the fourth exchange currency after the dollar, euro and yen. The pound sterling is also used as a reserve currency throughout the world, which is influenced by the stability of the UK economy.

History, origin of name and designation

The English pound is denoted by this symbol - £, but few people know what it means. If you look closely, it's the letter L. But there is no logic between "Pound Sterling" and the letter L. The fact is that a pound is a measure of weight, and sterling is an old English coin. And a pound sterling is the same as a kilogram of kopecks. That is, before, when a whole pound of such sterling was collected, they were already considered a separate unit. Later, the Bank of England introduced such a monetary unit as the pound sterling; before that it did not exist. Let's return to the designation, the fact is that the pound is also an ancient Roman measure of weight, but it was called differently in Latin - libra. English currency, however, is called “Pound” for some reason. In Latin there was an expression “libra pondo”, which meant “pound in weight”, that is, libra is pound, and pondo is weight.

Banknotes and coins

English money is issued:

in coins - 1, 2, 5, 10, 20 and 50 pence, as well as 1 pound and 2 pounds;
in banknotes - 5 pounds (in 2017, a new type of 5 pounds appeared, the paper was completely changed, the polymer material wrinkles less, does not tear, is protected from moisture), 10, 20 and 50 pounds.

Fifty pounds is the highest denomination of a banknote in England, and you can’t just get it unless you specifically ask for it at the bank. The bills themselves are quite large; when compared to euros, pounds are wider and longer. As in any country, in England there are many coins with rare designs that are collected by professional numismatists and just amateurs, most of the 50 pence were issued during the London Olympics, all on a sports theme, the coins depict almost all sports. There are also coins that are dedicated to a specific significant date. The secret of English money is that, having collected a certain number of coins with a certain design, you can lay out the coat of arms of England from them.

The first paper banknotes appeared at the turn of the 17th and 18th centuries, when the Bank of England was founded. Currently, 8 banks issue banknotes, which is why their design is different. There is one bank in England, three banks in Scotland, and four banks in Northern Ireland. In 2017, a new 5 pound note came into circulation in the UK. This money is much stronger and more durable, and it is also much harder to counterfeit. The main advantage of new-style banknotes is that they have a longer service life, since the life of old-style paper banknotes is only 1.5-2 years, and new banknotes are 5 years. Protection from counterfeiters also plays a role. Today, those who counterfeit banknotes do not have the technology to exactly replicate a new plastic banknote. By the way, the pioneers in issuing polymer money were Haiti, Costa Rica and the Isle of Man back in 1983. But the bills did not take root there, because the paint began to peel off due to the hot and humid climate.

The downside of introducing new banknotes is that bank and store owners will have to spend more than 200 million pounds to adapt the new money for ATMs and cash registers. In addition, to issue not paper, but polymer banknotes, it is necessary to launch new equipment, but in the end, according to some experts, plastic will cost more than paper, taking into account its service life, and will certainly be cheaper than metal. Following the first note, a plastic £10 note is being released, featuring the image of the writer Jane Austen. The 20 pound note is planned to be released in 2020, and the old 5 pound note (paper) completely went out of circulation in May 2017. The circulation of the first plastic banknotes in the UK is approximately 440 million copies.

Compared to the US dollar or other influential currencies, the pound sterling is not widely used. But, as before, the UK currency is valued not only at home. In many countries around the world, the pound sterling is one of the main reserve currencies.

History of the British pound

There are three main versions of how the British pound sterling came into being and where its name came from:

In the 12th century, the concept of Pound Sterling was introduced, which meant “a pound of pure silver.” This hypothesis is supported by the fact that the silver English coin in the old days was called sterling.
The second version claims that the beginning of the use of the term “sterling” dates back to 1300. The coins used by the Normans were then stamped with stars, and the Old English word for them was steorling.
According to the most popular version, the currency of the United Kingdom of Great Britain received its name from the phrase Easterling Silver. It can be translated as “silver from the lands of the East.” At that distant time in Northern Germany, this noble metal of 925 standard was used for minting coins. It gained fame due to its hardness and excellent qualities. Therefore, the King of England Henry II Plantagenet in 1158 issued a decree on the minting of British coins from such silver. Later, the abbreviated name Sterling Silver began to be used.

Issue of banknotes and coins

The UK currency is issued by different banks. For example, in England and Wales (the main region of the country), the Bank of England is responsible for issuing. In addition to it, 5 more financial organizations have the right to issue banknotes and coins: three banks from Northern Ireland, the Bank of Scotland, and the Bank of the Island of Jersey. The banknotes of each of these financial institutions have their own characteristics.

People planning to purchase Albion currency for the first time should be aware that not all UK currencies are currently freely convertible. For example, pounds sterling issued in Northern Ireland can only be exchanged within the borders of the United Kingdom in 2019.

At the same time, in the British Isles, some scammers, taking advantage of the financial illiteracy of tourists, sell non-convertible currency. Therefore, it would be useful to find out what pounds look like, which cannot be exchanged in the countries of continental Europe.

Example of a Northern Ireland 100 pound note:

The following denominations of British currency notes are currently in circulation: 5, 10, 20 and 50 pounds. Instead of small denomination paper money, corresponding coins are issued. We'll talk about them later.

Now look at what the largest pound sterling note is, which can be exchanged in other EU countries:

On the banknotes issued today by the Bank of England, there is an image not only of the British monarch Elizabeth II. For example, 10-pound notes with Charles Darwin on the back were issued in Foggy Albion. But in March 2019 they were withdrawn from circulation.

They were replaced by English banknotes of the same denomination with the image of the famous writer Jane Austen. A distinctive feature of such banknotes is the plastic base and the presence of convex dots in the upper left corner. With their help, people with poor vision can determine the denomination of banknotes.

Now a few words about coins. More or less modern means of payment of this type began to appear in the UK in 1968. The gradual increase in their number led to the replacement of old coins based on a number system other than decimal.

But, due to the fact that the English monetary system is very conservative, the one- and two-penny coins that appeared almost 50 years ago are still in circulation today. An image of the 2017 coins is presented.

The value of the pound sterling in relation to other currencies

Following the results of the Breton Woods Conference, held in 1944, the exchange rate of the member states of the system of the same name was tied to gold indirectly - through the exchange rate of the American dollar. In 1949, 1 pound sterling was worth 2.8 dollars.

In the 70s of the 20th century, the Jamaican currency system replaced the Breton Woods system. The gold standard was abolished and instead, exchange rates began to be set on the basis of the principle of free conversion, when the results of trading in foreign exchange markets were taken into account.

As a result, the value of the pound sterling became floating and in 1976 fell to $1.57. The all-time low was recorded in 1985, when the pound was worth approximately $1.05.

Despite the Kingdom's accession to the European Union, the answer to the question of what currency is in Great Britain remains unchanged. The country has retained its national currency in circulation.

But the significance of the pound and its behavior largely depend on the state of the Eurozone economy and, accordingly, the euro. So, when the euro loses its position, almost immediately this place is taken by the pound sterling or the Swiss franc.

Take a sociological survey!

The pound as the main international reserve currency

A reserve currency is a national currency that is recognized throughout the world and accumulated as a foreign exchange reserve by the central banks of other countries. It is designed to perform the function of supporting the local currency. Typically, one country uses several reserve currencies, which are selected from the most stable and least susceptible to inflation.

You should know that the IMF has coined another term - world reserve currencies. In order for the monetary unit of a certain state to receive this status, the fund considers the following criteria:

the degree of stability of the financial situation in the country;
level of development of the state's economy.

The pound sterling has had the status of the main reserve currency for 300 years. But after the abolition of the gold standard, the dollar and euro became the leaders.

Behind last years the interest bearing on the pound in general reserves has increased. In addition, according to financial analysts, the UK currency has good prospects. This forecast is justified by the instability of the US dollar.

However, taking into account only this factor does not reflect the real situation with the pound sterling. In June 2019, due to fears of a “hard Brexit,” the currency of the United Kingdom dropped to a minimum - during one trading session the pound was trading at $1.2514.

UK exchange rates

To find out the exchange rate in the UK, you first need to understand how pounds sterling is designated. The icon of this monetary unit looks like a Latin letter L in italics, with one horizontal stroke – £.

The pound sterling is designated GBP according to ISO 4217.

Each currency of the British Overseas Lands has its own sequence of Latin letters. For example, the Falkland Islands pound is designated FKP.

The ratio of the pound sterling to the ruble exchange rate can be viewed on the website of the Central Bank of the Russian Federation. It is also worth considering that commercial banks, based on the Central Bank rate, can set their own exchange rates, which must be checked on the official website of a particular bank.

Where can I exchange and what currency?

You can exchange money in the United Kingdom at hotels and some post offices, banking institutions and exchange offices. By the way, the latter work at train stations and airports around the clock.

On weekdays, banks are usually open from 9.00 to 15.30. Branches of some large financial organizations are also open on Saturdays.

When planning a trip to the UK, it is better to take pounds in cash. But an equally good option is to pay even with a ruble card. Conversion of non-cash Russian currency into British currency is carried out at a more favorable rate compared to cash.

VAT refund

The term Tax Free refers to the process of refunding VAT included in the price of a purchased product or service provided.

Not all commercial enterprises operate under the Tax Free scheme in the UK. You can find out about the possibility of VAT refund from their employees.

Cash registers of stores participating in the Tax Free system print a VAT refund form automatically when payment is made using a bank card issued outside the European Union.

When leaving the United Kingdom, the foreigner must show the customs officer the goods in their packaging and the completed form above. The tax will be returned after consideration of the application to the card specified in the form.

In the UK, Tax Free programs are operated by two operators:

Global Blue will refund VAT if a single receipt shows a purchase of goods exceeding £30;
Tax Free Worldwide refunds tax on amounts in one check starting from £50.

Conclusion

Currently, paper banknotes and coins are in circulation in Great Britain. The official currency of the United Kingdom is also used in the overseas territories of this state.

The British pound, in accordance with the ISO 4217 standard, has the letter GBP.

The central banks of Scotland and Northern Ireland issue their own banknotes, which can only be exchanged within the UK.

It is better for Russians to take cash pounds sterling when traveling to the UK. But the option of paying with a ruble card is also profitable: non-cash currencies are converted at the optimal rate.

English currency. £ Pounds, pence, pennies. Plastic bills: Video

The modern currency of Great Britain is known as GBP, which is equal to 100 pence. Banknotes in use are represented by the following denominations: 1, 5, 10, 20, 50. Coins include 1 and 2 pounds, as well as 1, 2, 10, 20, 50 pence. The British call the coin “penny”, 2 pence – twopence (and contrary to all reading rules it is proudly called “tapens”), 3 pence – threepence.

At different times, 1 pound had completely different reverse. If on the obverse we were always greeted by Queen Elizabeth II, then, since 1983, on the reverse side we could see floral themes, animals, bridges, as well as images of the royal coats of arms and shields of Belfast, London, Cardiff and Edinburgh.

But what kind of money was in use before? In 1971, Great Britain switched to a decimal coinage system, and the “farting” and its derivatives third farting (third), quarter farting (quarter), half farting (half) were completely removed from circulation.

The initial issue of the silver farthing began under Henry III back in the 13th century, but the weight of such a coin was constantly changing. In the 17th century, under King James I, a copper farthing appeared, the diameter of which was 15 mm. The end of the 17th century was marked by the release of a token, which was equal in value to a farthing and a halfpenny. At the beginning of the 19th century, the “farting” began to be produced again, which was made from silver, gold and bronze.

Coins of England of the 16th century: shilling and floring

The first mention of the shilling dates back to the 16th century during the reign of Henry VIII. The “shilling” coin, more often called teston, was minted from copper, and the top layer was coated with silver.

Since the most prominent parts of the coin immediately appeared when it was used, and this was the king’s nose, the ruler was nicknamed “the old copper nose.” Later, the silver shilling continued to be issued during the reign. During the reigns of George VI and Queen Elizabeth II, the last shilling was issued; minting of such coins ceased in 1971.

However, before the advent of the shilling, there was a floring in circulation, which until the beginning of the 20th century was minted from 500-karat silver. It was subsequently replaced by two shillings.

The appearance of the penny coin

The history of the British penny goes back to the distant 8th century, but the common English penny began to be issued a little later, in the 10th century under King Edgard. Since then, the weight of the coin gradually decreased, and the amount of silver decreased, as a result of which already in the 16th-17th centuries the “penny” coin acquired a small shape and light weight. Money was given a new life by Queen Victoria, who established the minting of bronze coins in the mid-19th century. The modern penny is one hundredth of a pound sterling and is made of copper-plated steel.