What is the currency in England? Money in England. The origin of the English currency - the history of the pound What are pounds money

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.

Currently, the English pound sterling is the oldest European currency in active circulation. This monetary unit is the national currency of the United Kingdom of Great Britain and Northern Ireland, including England, Scotland, Wales, and Northern Ireland. In parallel, the pound is the currency of the crown lands of Guernsey, Jersey and the Isle of Man, as well as legal tender in the British Overseas Territories. One pound sterling contains one hundred pence. The currency has the designation GBR and code 4217 according to the ISO standard.

It is worth noting that, despite its membership in the European Union, Great Britain did not switch to the euro and to this day remains faithful to its national currency. Although the question of switching to the euro has been raised many times, a final answer to it has never been received. Moreover, replacing the currency will not in any way affect national interests and the strengthening of the domestic state economy. Most of the country's population speaks negatively about the replacement of the currency, because the pound sterling has a very rich history and is associated with a national treasure.

History of the pound sterling

The English pound currency allegedly appeared in 775, during the formation of the Anglo-Saxons. Today, there are several versions of the origin of the name of this currency. According to one version, the currency acquired its name in the 12th century. It was connected with an ancient coin, which at that time was in circulation in the territory of ancient England - “sterling”. The coin was pure silver. In order to mint 240 sterling, it was necessary to have 1 pound of silver. Therefore, then, in the 12th century, the currency was called the “pound sterling,” which literally means “pound of pure silver.” Knowing that 1 pound yields 240 coins, it was possible to check their fullness, which was sometimes done before. Thus, the weight of 240 coins should be 1 pound; if their weight was less, then the coins were considered either counterfeit or very worn. However, this measure of currency calculation was not always the case. When the Normans conquered England, the pound was divided into 20 shillings, each of which weighed 12 pence. And only after some time sterling joined the pound.

As you can see, the weight and fraction of a pound were calculated using the duodecimal system. The decimal number system, which is currently popular, took root in Great Britain only in the second half of the twentieth century. The transition to a new number system was poorly tolerated by ordinary residents of Great Britain. To distinguish the new fractional to the pound from similar names that existed earlier, it began to be called the new penny.

The author of another theory is Walter Pinchebeck. He believed that the coins were originally called silver from the lands of the East - “Easterling Silver”. It was this silver that had 925 fineness and was used for minting coins in northern Germany. The area consisted of five settlements and was called among the English “Easterling”. In the same 12th century, these lands joined the Hanseatic League. The district had its representative office in London, and also had close trade relations with England, paying for goods with the money that was in use on its territory. These coins were different high quality and hardness, unlike pure silver, which is very soft and therefore subject to rapid abrasion. Since 1158, King Henry II invented a similar alloy, from which English coins began to be minted. After some time, the name of this alloy was shortened and became known as “Sterling Silver”, which translated meant “coin silver”.

This name was completely assigned to the currency at the end of the 17th century. This event is associated with the beginning of the issue of pound sterling banknotes by the English Bank.

Thus, it is worth saying that the pound sterling currency has a compound name. In everyday life it is called for short - pound. Its full name is used mainly in documentation to accurately designate the English pound.

It is worth noting that there is currently a pound sterling symbol. Amounts calculated in pounds are indicated by the symbol ₤ or £, which is based on the Latin letter L (from the abbreviation LSD labra, solidi, denarii). From the very beginning, English monetary units were divided exactly as required by the rules that had taken root during the Roman Empire. Libra means "unit of weight". In accordance with the ISO standard, the currency has the following letter and numeric designation - GBP 4217 826. All other designations that can be found anywhere are not official.

GBP. Banknotes

The issue of banknotes was started by English banks at the end of the 17th century, namely in 1694. A year later, a Scottish bank also began printing banknotes. Then the denomination of banknotes was not constant and was established during the printing of the next batch of money. There are even cases in history when a fractional number was used to indicate the value of banknotes. This situation lasted for a whole century and only at the end of the 18th century the denomination of pounds sterling ceased to be changeable. Since then, banknotes have been issued in denominations ranging from £5 to £1,000.

The Irish Bank began printing pounds only in 1825, when the English pound began to be in free circulation in Ireland. But it is worth noting that in Ireland there were no banknotes with a large denomination. The largest note was £100.

Since 1826, based on a law passed to limit the types of notes issued, paper pounds sterling could only be printed by banks located in London and within 65 miles of it.

However, in the post-war period, new banks were not given permission to print their own British pound notes. Thus, all banknotes with a designer design ended their existence in the first half of the twentieth century.

Throughout the history of the pound sterling, many series of money have been issued, which differed from each other in the degree of protection against counterfeit money. Currently in use are banknotes of the “E” and “F” series; the first was revised in the early 2000s.

Modern pounds are printed by the Bank of England, the Bank of Scotland, the Bank of Northern Ireland, the Crown Lands and the British Overseas Territories. According to official data, banknotes issued by Scottish and Irish banks are recognized as legal means of payment throughout the UK. However, in practice this phenomenon does not occur. For example, some English establishments do not accept Irish pounds, which is also legal. This is due to the strange definition of legal tender in English law.

Banknotes printed in different banks, due to the addition of relevant national motifs to their design, may have significant differences from each other.

It is worth saying that throughout the history of its existence, the currency has managed to maintain a strong fundamental position in the world economy, even after the dollar came to its leadership position. Almost until the 19th century, the pound sterling held the title of the most significant currency in which banks of other countries kept their capital. The situation changed radically after the end of World War II, when the United States, thanks to its colossal gold and foreign exchange reserves and powerful industry, occupied a leading position in the world market. It was during that period that the dollar was recognized by other states and established as a single reserve and settlement currency, and the pound sterling lost its significance.

However, despite the fact that the dollar and euro are today recognized as the number one world and reserve currencies, the British pound plays the role of one of the leading currencies participating in international payment transactions. Currently, the pound sterling is in third place in importance among all world currencies. The British pound, along with the number one world currencies, is the main reserve currency of many countries in the world. He actively participates in settlement operations carried out by the IMF.

How much is the English pound worth?

Currently, the British pound relative to other world currencies is valued according to the principles of a floating exchange rate. The Second World War significantly undermined its value as a reserve currency for many states. But this did not prevent the pound from staying afloat, losing only to the dollar and euro in the currency baskets of other countries. Currency dealers are currently keeping the pound on their radar as the currency continues to be highly valued different countries world, occupying far from the last positions in the ranking of the most expensive currencies.

GBP is the national currency of the United Kingdom of Great Britain and Northern Ireland. Reserve currency. One of the main currencies in the Forex market. Now in 4th place in terms of foreign exchange reserves.

Pound symbol and code

UK currency bank code is GBP(abbreviation of the official name - Great Britain Pound).

The pound is represented by the symbol £(U+20BA) - handwritten capital Latin letter L with 1 or 2 horizontal strokes.

Etymology

In the 12th century, English silver coins were called sterling. 240 sterling weighed just over 373 grams - that was a pound. In Latin pondus means weight, heaviness. That is, initially the pound sterling really meant “a pound of pure silver.”

There is a visible connection with the Old English lexeme steorling - “asterisk”. It was the stars that were depicted on silver coins issued in Normandy.

Easterling Silver (literally: silver from the eastern lands) - wear-resistant coins made of a durable silver alloy, created in the north of modern Germany - those territories were formerly called Easterling.

A Brief History of the British Pound

Presumably, the pound appeared in 1158 by decree of Henry I. He deprived goldsmiths of the right to issue money, with whom they often cheated.

Henry I introduced a system of measuring rods. Polished wooden slats served as money. The denomination was indicated by notches. Half of the lath was in use, the other was kept by the king as proof of authenticity. Such a measuring rod could be used to pay taxes. This monetary system functioned successfully for more than 700 years.

The first coin was issued in England in 1489 - it was a gold sovereign. The last such solvent coin was created in 1982.

Since 1663, the main gold coin in the country has been the guinea (21 shillings - 1 pound plus 1 shilling). It was minted until 1813.

Since 1694, paper bills have been printed (the name has been established since then). Elizabeth I established total control over the issue of coins.

For a long time, the pound was freely exchanged for silver or gold, and only in the 20th century this was abandoned.

by 30% (in 1949) due to an unsuccessful attempt to introduce a peg to other currencies;
by 20% after the liquidation of the gold standard;
by 14% (in 1966);
by 25% after another attempt to peg the pound to a foreign currency - this time to the German mark (in 1988).

Since 1946, the British pound has been a freely convertible currency (that is, there are no restrictions on foreign exchange transactions). It is also one of the 17 clearing currencies of CLS (international settlements are carried out without conversion to other currencies).

Banknotes and coins

All UK money has the porter of Queen Elizabeth II on the obverse.

Currently, only 4 banknotes are used: 5, 10, 20, 50 pounds. There are 2 series in use - E (after revision) and F. The latest series retained the dimensions of the banknotes and the portrait of the Queen, but has a different design and additional security measures: kinegram and luminescent protection.

Starting from 2016, it is planned to create polymer banknotes: cleaner, safer and more wear-resistant. In 2015, these were used in 48 countries.

1 pound sterling - 100 pence.

1 penny;
2, 5, 10, 20, 50 pence;
1.2 lbs.

Penny coins remain solvent only up to a clearly designated amount. For example, 50 pence coins can be used to pay for a product or service worth up to £10.

1 pound - photo

The £1 coin has been issued since 1983. It differs from coins of lesser value in its thickness (3.15 mm), weight (9.5 g) and characteristic yellow color. Minted from an alloy of copper, nickel and zinc.

The coins of the latest series depict the coat of arms of Great Britain, with the following inscribed on the edge: DECUS ET TUTAMEN (“Decoration and Protection”).

In 2017, £1 coins will change dramatically for the first time in 30 years. They will have 12 sides, minted from 2 metals using the latest technology. The author of the design, 15-year-old David Pearce, proposed depicting 4 plants on the £1 coins, each symbolizing one part of Great Britain: a rose, a thistle, a shamrock and a leek.

The current version of the £1 coin is easy to counterfeit. It is believed that about 3% of coins of this denomination are counterfeit (approximately 45 million pieces).

What do pounds look like?

The £5 note features a portrait of feminist Elizabeth Fry, who became famous for her prison reform efforts. Former Prime Minister of England Winston Churchill should appear on new banknotes in 2016.

10 pounds series E (after revision) contains a portrait of the author of evolutionary theory - Charles Darwin (in the previous version - the writer Charles Dickens).

The old £20 note (featuring the composer Sir Edward Elgar) was withdrawn from circulation in 2010. It was replaced by a banknote with a portrait of the economist Adam Smith - from the new F series.

In 2014, the 50-pound note, which featured Sir John Houblon, the first president of the Bank of England, became insolvent. On the banknote of the new series are Matthew Bolton (industrialist who produced steam engines) and James Watt (Scottish inventor who invented the steam engine).

The pound to dollar ratio is determined on the international foreign exchange market and is constantly fluctuating. 1 pound in dollars as of May 2019 is approximately 1.25.

At the beginning of the twentieth century, 1 pound was equal to 4.9 US dollars. The rate fell to $2.71 in 1966, then to $1.57 in 1976. The historical minimum is 1.05 US dollars per 1 pound sterling (1985).

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In the VoxBook audio course, which is based on fiction without simplifying the text, you will definitely come across references to English money. Currency of England pound- pound or pound sterling- pound sterling (from Latin - weight) is abbreviated as £ put into circulation in the 9th-10th centuries.
Previously, in England, a non-decimal coin system was used to count money; one pound was equal to 240 pence. In 1971, the UK currency system was reformed to a decimal coinage system, and one pound became equal to 100 pence. At the same time, most of the monetary units of the past fell out of use, but references to them certainly remained in the literature, and accordingly they remained in our audio course.

So in the VoxBook audio course in the fairy tale "Mr Vinegar" from the collection English Fairy Tales:

"Here, Jack [here/here, Jack]," said one [said one], "here"s five pounds for you ["there's" five pounds for you]; here, Bill, here's ten pounds for you [here, Bill, there's ten pounds for you]; here, Bob, there's three pounds for you [here Bob, there's three pounds for you].

Let's take a closer look at the question of the current and past monetary units of Great Britain, and at the same time find out why in this passage there are five pounds, three pounds, ten pounds and not one pound.

English money now.

In 1971, the UK monetary system was reformed into the familiar decimal coin system. One pound is equal to 100 pennies. In circulation there are banknotes in denominations: 1, 5, 10, 20, 50 pounds, as well as coins of 1 and 2 pounds, and 1, 2, 10, 20, 50 pence called new penny- a new penny.

Currency unit pound or pound sterling(plural pounds) - pound or pound sterling is abbreviated as £ (from the Latin word libra - pound). This sign is placed before the number:
£1 - one pound or one pound sterling(units).
£2 - two pounds or two pounds sterling(plural).
£10 - ten pounds or ten pounds sterling(plural).

Currency unit penny penny = 1/100 of a pound (plural pence- pence) - abbreviated p. This sign is placed after the number (with or without a dot):
1p. - one penny (unit).
2p. - two pence (plural).
10p. - ten pence (plural).

One penny is denoted 1p, read a penny or one penny.
One pound £1 is read a pound or one pound.

When denoting the number of pence in words, the words are written together: sixpence, fivepence, fourpence, threepence, twopence.
10p - ten pence is often pronounced ten pee (reading the abbreviation p).

If the number of digits of pounds is more than three, then every three digits from right to left are separated by a comma, and pence from pounds by a dot:
£1,234,567.00 = £1,234,567.

Money amounts consisting of pounds and pence are designated in one of the following ways:
£265.78, £265-78 and read the same - two hundred and sixty-five pounds and seventy-eight (pence).

If it is necessary to indicate that we are talking specifically about English currency, then you can indicate pound(s) sterling - pound(s) sterling. In this case, the word sterling is never given the ending -s (since the word sterling is an adjective):
165 pounds sterling; £165 sterling= £165.

The word "sterling" is often used when writing a monetary amount in words:
£1,234.56 - one thousand two hundred and thirty-four pounds sterling and fifty-six (pence).

Monetary units of England of the past.

In the name of the currency of England pound sterling - pound sterling reflects the equivalent value of one pound of silver. One pound of silver was minted into 240 pence (penny and penny are the singular and plural forms of the same word). The word sterling means pure, of a specified standard. The pound was indicated by the sign £ (without a dot or a Latin letter L), this sign is placed in front of the number. Pennies were indicated by a sign d.(from the word dinar, as opposed to today's designation p.), the shilling was indicated 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 to count money (rather, it is similar to the duodecimal system: 1 pound = 240 pence):

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

The smallest coin was a farthing =1/4d. (1/4penny) = 1/960 pound.
Coins were issued: half farting = 1/8 d., third farting = 1/12 d., and quarthing farting = 1/16 d).

Penny - short name d.(from dinar).
Coins were issued: halfpenny - 1/2d., twopence - 2d., threepence - 3d., groat - 4d., five pence = 5d., sixpence - 6d.

Shilling - short term s.= 12d. (12 pence)

Florin = 2s. (2 shillings) = 24d.

Crown = 60d. (60 pence).
Half crown coins were issued - half a crown = 30d.

Gold Guinea, issued from 1663 to 1814. Guinea is an unofficial name that is derived from the gold mining area of Guinea. In 1817, the guinea was replaced by the gold sovereign. Coins were issued in 1/3 guinea, 1/2 guinea, 1 guinea, 2 guineas and 5 guineas.

Sovereign = 240d. (240 pence) = 20s. (20 shillings) = £1 (1 pound)
Half sovereign = 120d coins were issued. (120 pence) = 10s. (10 shillings) = £1/2 (1/2 pound).

In the VoxBook audio course, in the tale "The Ass, the Table, and the Stick" from the collection English Fairy Tales, which mentions English money of various denominations:

...and he had but to pull Neddy's ears [and “he only had to” = he only had to pull Donkey’s ears] to make him begin at once to ee-aw [to make him start right away (shouting) a-ah]! And when he brayed [and when he roared] there dropped from his mouth silver sixpences [here silver sixpence fell / fell from his mouth], and half-crowns[and half a crown] , and golden guineas [and golden guineas].
(English Fairy Tales - "Mr Vinegar")

There were coins of other denominations, such as half-sovereign, half-guinea, half-crown, half-penny, half-grout, 2 pence, 3 pence, 6 pence sixpence or "tanner" and others.
Some coins were not minted, for example there are no old 1 pound coins, instead a 1 sovereign coin was minted in gold with a denomination of 1 pound. Coins were also minted in denominations of 2 pounds and 5 pounds. A variety of paper notes were issued, including £3 notes. This is exactly what is mentioned at the beginning of the article in an example from the audio course.

Naming English money and sums of money in slang

Besides official names monetary units, there were slang expressions denoting certain English money. Below are the most commonly used slang synonyms:

1d = coal
1p = yennep/yenep/yennep/yennep
4d = gross
6d = tanner, bender, sixpence, kick, simon, sprazi/sprazzy, sprat/spratt, tom/tom mix

1s = bob, chip or shilling bit, dinarly/dinarla/dinaly, gen, hog
2s = two bobs, bice/byce
5s = caser/case, tosheroon/tusheroon/tosh/tush/tusseroon
10s = ten bob, half, half a bar/half a sheet/half a nicker, knicker, net gen

£1 = bar, jack, nicker, nugget/nuggets, quid, saucepan
£2 = bottle, half a crown
£3 = tray/trey

£5 = fiver, flag paper £5,flim/flimsy, handful, jacks, oxford
£10 = tenner, big ben; £20 = score; £25 = macaroni, pony
£100 = ton; £500 = monkey; £1,000 = grand; £100,000 = plum

1 = guinea job, ned
1 = sovereign strike

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.