Britain
Britain or the United Kingdom is a European country with a constitutional monarchy, located off the northwestern coast of the continent, and consists of four regions: England, Wales, Northern Ireland, Scotland, and many other islands that belong to it constitutionally but are not part of it, such as the Isle of Man. Guernsey, and the United Kingdom is considered an economically developed country. Its economy ranks sixth in the world, and in this article we will introduce you to a British currency.
British currency
The pound is considered the official currency of Britain and the countries it includes, such as: Wales, Northern Ireland, the Isle of Man, South Georgia, Scotland, the British Antarctic Territory, the South Sandwich Islands, and Tristan. The pound is one of the oldest currencies in the world that is still in use to this day. It was the main reserve currency in the world during the nineteenth century, and it is called the pound sterling. Which means silver penny; This is in order to distinguish it from other currencies that bear the same name as the pound. It was given the name sterling in the Anglo-Saxon era and the Norman era in Britain. The pound is called the pound, and it is symbolized by the symbol £, and it is known as GBP. The pound is divided into one hundred pence, and the pound was Sterling and its banknotes were supported by gold and silver in the past, but currently it is supported by the British economic system in the regions in which it deals.
Read also:What is the currency of Brazil?Origins of the pound sterling
The origins of the pound sterling go back to the reign of King Offa, son of Mercia. Then came the Scottish pound, which is equivalent to the pound sterling in value. The pound sterling was used in most British colonies alongside the local currencies of those colonies, such as Australia, Canada, and India. Britain established In agreement with the United States of America in order to link the pound sterling with the US dollar in a system called Bretton Woods in 1940 AD, and the value of the pound at that time was $4.03, and the pound sterling was floated after the collapse of the Bretton Woods system, and after the European countries were united as a result of the establishment of the Union. European in one coin; It is the euro, and Britain refused to join the euro currency and remained on the pound sterling.
The pound sterling in the global exchange market
The pound sterling is considered one of the most traded currencies in the foreign exchange markets in most global markets, as it comes directly after the US dollar, and in parallel with the Japanese yen and the euro. Many countries consider the pound sterling a reserve currency and a reserve of reserve currencies.
The most traded currency pairs against the British Pound
- British Pound and US Dollar GBP/USD.
- British Pound and Euro EUR/GBP.
- British Pound and Japanese Yen GBP/JPY.
