English money: history and interesting facts. Pound sterling What is the name of the UK currency?

Initially, the pound sterling in Great Britain was equal to one troy pound of , hence its name, because the English word “sterling” in relation to the metal means “pure, of an established standard.” The pound sterling is the only government currency used in the United Kingdom of Great Britain and Northern Ireland and the British territories of the Isle of Man, Jersey and Guernsey. The symbol for this currency is the £ sign.

The design of pound sterling banknotes varies depending on the region where they are printed. The British themselves cannot always recognize the currency of their country and mistake it for a foreign one.

Banknotes

In England, pounds sterling are in circulation in the form of banknotes in denominations of 5, 10, 20 and 50 pounds. All banknotes feature an image of the Queen on one side and a famous historical figure on the other side. Queen Elizabeth II is the only monarch to have her porter featured on a banknote. This first happened in 1960 with the aim of reducing counterfeit money in the country. As for the reverse side of the paper pound, on the five pound note you can find a portrait of Elizabeth Fry, who fought to improve conditions for women in European prisons. The ten pound note features the image of Charles Darwin, the Victorian naturalist and author of the theory of evolution. The twenty pound note featured the British composer Sir Edward Elgar until 2007, when a new design was released featuring a portrait of Adam Smith, one of the founding fathers of modern economics. The fifty pound note features the image of Sir John Houblon, the first governor of the Bank of England.

The British came up with slang nicknames for their currency. For example, words such as "fiver" - "five" - ​​for five pounds and "tenner" - "ten" for ten pounds are in use. The pound is also called "cable" or "quid".

Coins

Since 1971, England has adopted a decimal system, meaning one pound is now equal to one hundred pence (in singular units called “pennies”). The accepted designation for a penny is the English letter "p". In circulation in England there are coins in denominations of 1, 2, 5, 10, 20 pence and 1.2 pounds. All coins also feature a portrait of Queen Elizabeth II and the letters "D.G.REG.F.D." are engraved around the edge of the coin. Tourists often wonder what phrase is hidden in this abbreviation. In fact, these letters stand for a saying in Latin - "Dei Gratia Regina Fidei Defensor", which translates as "By the grace of God, Queen Defender of the Faith." The reverse side of the 1 penny coin depicts the portcullis of Westminster Abbey, on the 2 pence coin the coat of arms of the Prince of Wales (decorated with feathers), on the 5 penny coin there is a thistle, a symbol of Scotland, on the 10 pence coin there is a lion, a symbol of the power of Britain, with the crown of the British Monarchy on head, on 20 pence - the national one of England - the Tudor rose, and on 50 pence - a lion and the symbol of the British Isles. As for the 1 and 2 pound coins, the first of them has different images reflecting the symbols of the countries that make up the United Kingdom. These are lions for England, thistles for Scotland and leeks for Wales. The £2 coin features an abstract illustration of the country's technological development, and is engraved around the edge with Sir Isaac Newton's phrase: "Standing on the shoulders of giants."

The pound sterling is the official currency of Great Britain and one of the world's reserve currencies along with the US dollar, euro and yen. At the moment, the quotation of the English pound is one of the highest on financial exchanges.

Currency pound sterling

The pound sterling is the national currency and means of payment for Britain, Scotland, Wales and Northern Ireland.

In addition, the English pound acts as:

• parallel currency of the crown lands (Guernsey, Jersey and Maine);
• legal tender in the British Overseas Territories (St. Helena, Gibraltar and Falkland Islands).

In addition to the Bank of England, the following have the right to issue pound sterling:

• three banks of Scotland;
• four banks in Northern Ireland;
• Bank of the Island of Jersey.

Bank of Scotland, Royal Bank of Scotland and Clysdale Bank issue banknotes predominantly in brown, green and olive colours.
Banks in Northern Ireland print sterling in grey, blue-green, violet and blue.

The Jersey pound is typically purple, red and blue. Green banknotes have been gradually withdrawn from circulation since 1963.
The banknotes issued by these banks, although they have a different design from the original (Bank of England note), according to the law, must be accepted by any institution.

But, as practice shows, in reality quite often there are cases of refusal to accept such bills.

The high value of the English pound against major world currencies contributes to increasing the growth rate of UK industry. A reflection of such growth is the volume of GDP, whose indicators allow the country to be in the top ten.

On international exchanges, the slang name for the pound is often used - "cable". Came into use back in the 1930s. this designation is associated with the laying of a telegraph cable along the bottom of the Atlantic, ensuring interaction between the financial markets of the Old and New Worlds.

Designation

In the international monetary system, the pound sterling is symbolized by the symbol £. This is nothing more than the English abbreviation LSD, whose full designation sounds like: “librae”, “solidi”, “denari”, and is translated as pound, shilling, pence.

In the banking system, the designation GBR is most often used, however, the abbreviations UKL (United Kingdom Libra) or UKP (United Kingdom Pounds) are periodically used. The last two are not official.

As for colloquial speech, most often the Queen's subjects call their currency sterling. Often in stores on price tags the designation is indicated in the abbreviation STG or ster.

Today 1 pound equals 100 pence.

Banknotes in denominations of £5, £10, £20 and £50 are in constant circulation. There are banknotes of larger denominations, but they are used exclusively in the interbank settlement system. In addition, coins of £1 and £2 and 1, 2, 5, 10, 20, 50 pence are often used in everyday use.

Pound sterling notes

In 1694, the newly established Bank of England began issuing paper banknotes in denominations ranging from £20 to £1000.

In 1759, £10 notes were introduced into circulation, in 1793 - £5, and in 1797 - £1 and £2 notes.

However, after the Napoleonic Wars, the last two banknotes fell out of use and from 1855, banknotes in denominations from 5 to 1000 sterling were mainly used.

In 1695, the Bank of Scotland was formed, which also began issuing paper currency and coins.

And in 1825, the Bank of Ireland picked up the baton, launching the production of sterling banknotes.

The Second World War makes adjustments to the Bank of England's emission plans. Fearing the Nazis are issuing counterfeit notes, the Bank of England ceases production of all banknotes whose denomination exceeds £10. It was only in 1964 that the bank returned to issuing 10-pound notes. Issue of 20 and 50 pound notes was resumed in 1970 and 1982 respectively.

On the obverse of the English pound there is an image of the Queen of Great Britain - Elizabeth II. On the reverse are famous personalities who constitute the national pride of the country - scientists, military commanders, writers. However, banks began posting portraits of prominent figures only in 1971.

For example:

• on the 20-pound note issued in 2003-2007, the reverse of the note features an image of Adam Smith, the founder of economic theory;
• the 2002 £5 features a portrait of Elizabeth Fry, known for her efforts to reform the prison system;
• on banknotes issued from 1999-2003 you can see Charles Dickens, Michael Faraday and Edward Elgar;
• The issue of banknotes from 1971 to 1982 was marked by the appearance on the reverse of portraits of such personalities as Isaac Newton, the Duke of Wellington, Florence

Nightingale and William Shakespeare

Back in 2013, representatives of the Bank of England announced the release of new banknotes by 2016-2017. The production of British banknotes is planned to be switched to polymer materials by this year. The first plastic notes will be issued in denominations of £5 and £10. The five pound note will feature a portrait of Winston Churchill, and the ten pound note will feature Jane Austen.

Pound sterling coins

As mentioned earlier, 1 pound = 100 pence.

Coins in circulation include 1, 2, 5, 10, 20, 50 pence, as well as £1 and £2. A single coin with a denomination of one penny is called a penny.

It was the silver penny that was one of the most common coins in the 8th – 13th centuries on the territory of the Anglo-Saxon states. As exchange, the coin was often cut into 2 or 4 parts.

During the reign of King Henry VII in 1487, the production and introduction of the shilling began, and in 1789 the pound was minted, later called the sovereign.

The year 1816 marked the establishment of the gold standard in Britain. And since 1817, 22-karat gold began to be used for the production of sovereigns.

The issue of sovereigns continued until the First World War. After 1917 it disappeared from domestic circulation, and in 1932 the coinage of the sovereign was discontinued due to the abolition of the gold standard. Today, gold sovereigns can be found in museums and numismatic collections.

In 1968, the transition to a decimal division of the pound began. The fact is that until 1971, 1 pound was equal to 20 shillings, each of which was divided into 12 pence. However, by this time almost the entire world had switched to a monetary unit consisting of one hundred fractional parts. As a result, the first coins in denominations of 5, 10 and 50 pence were issued in 1968, and the end of the reform in 1971 began minting coins in denominations of 1 and 2 pence.

Just like on banknotes, there is a portrait of Elizabeth II on the obverse of the coin. The reverse is decorated with the image of the whole royal shield or part of it, depending on the denomination of the banknote.

History of the pound sterling

After the introduction of the euro, the English pound sterling became the oldest currency used in the world.

According to one version, back in the 8th century, King Offa introduced a silver token - a penny, which quickly began to circulate not only in Mercia (the modern central counties of the British Isles), but also on the lands of neighboring states that later formed the United Kingdom.

Under Henry II in 1158, the first 925 silver coins began to be produced. This contributed to their greater wear resistance compared to pure metal. And although gold entered trade and monetary circulation back in 1134, gold coins began to be produced in Britain two centuries later.

In 1603, England and Scotland were united, however, until 1707, the official currency of Scotland remained the Scottish pound. And if initially the rates of both currencies had the same values, then after some time the “Scots”, having survived the devaluation, fell in price by almost 12 times. After the formation of Great Britain in 1707, the Scottish currency went out of circulation and was replaced by the English pound.

The year 1694 was marked by the release of the first paper notes.

Another of the most important events in the history of the British currency was the Bretton Woods agreement concluded in 1940 with the United States. This agreement established currency quotes in the ratio £1 = $4.03. However, later the Bretton Woods system faced a crisis, as a result of which, by 1967, the quotation of the “English” in relation to the “American” looked like £1 = $2.4. A year earlier, a special currency regime was introduced in the country prohibiting the export abroad of more than £50.

In 1972, the government of the United Kingdom reoriented itself to a “floating exchange rate” policy, that is, a regime was introduced in which the final values ​​were determined by the results of trading on the foreign exchange market.

And in 1990, it was decided to connect to the European monetary system. However, on September 16, 1992, on the day known as “Black Wednesday,” the British pound fell. After this financial crisis, the UK returned to a floating exchange rate policy.

Despite the fact that the country is a member of the EU, the transition to the European currency has been postponed indefinitely. A public survey in 2008 showed that more than half of the British were against the introduction of the European currency in the kingdom.

Origin of the pound sterling

As for the name “pound sterling”, there are several versions put forward:

1. Some scientists are inclined to believe that “pound sterling” should be translated literally as “pound of pure silver,” since sterling is an ancient Anglo-Saxon coin minted from silver.
2. Others believe that the original currency was a Norman silver coin with a star ("steorling" in Old English for "star").
3. One of the main versions belongs to Walter Pinchebeck. According to this theory, the alloy of silver and copper that received 925 fineness was called “Easterling Silver” or “silver from the eastern lands.” This alloy was used in the production of coins in Northern Germany, and was later adopted by Henry II.

Security levels of British pound banknotes

The pound sterling banknote is the second most resistant to counterfeiting in the world after the Australian dollar. What can you do, the queen does not tolerate doubles.

1. Print quality— all printed prints are clear, not blurry. Even the smallest elements are clearly visible. Special cotton paper is used for release.
2. Relief printing— in certain areas of the bill a raised surface is felt.
3. Watermark— upon careful examination, the face of the queen can be seen in the light on the right.
4. Security thread- metallized dotted thread “implanted” into the bill. It darkens and becomes solid when exposed to light.
5. Hologram- image on the obverse of the banknote. Changes when studied from different angles. The £20 note features a holographic ribbon.
6. Fluorescent protection- When exposed to ultraviolet radiation, the denomination sign of the banknote appears. In addition, colored fibers are distributed over the surface, visible only under UV radiation.
7. Microtext- capital text in the form of patterns located under the portrait of Elizabeth II.
8. Pass-through register- special protection for the £20 banknote. The currency symbol on a banknote becomes complete when held up to the light.

The pound sterling is not just the currency of the United Kingdom. For the British, it is associated with national treasure and pride in its great past. Having a centuries-old history and having experienced many upheavals, this oldest currency in the world is still one of the leading ones in the global financial market.

Do you know what I like most about films about knights, musketeers and so on? That there is no money there. Or rather, there is money, of course, but it is always in pouches.

« " The traveler throws a bag of coins on the table, the innkeeper nods his head and makes a sign for the freckled girl to bring beer.

Or like this:

« Take this as a deposit" The knight throws a bag of coins onto the ground. " When it's all over, you'll get just as much more" The mercenary picks up the wallet from the ground and, satisfied, leaves.

By the way, it is very important that bags are most often thrown, probably to emphasize the importance of the act of transferring funds. " Find me a good stallion in the next village. Here's the money" A wallet thrown on the table loudly clinks its contents, which undoubtedly enhances the solemnity of the moment.

In general, this sketch could have started differently. For example, like this: in England everything is not like people. They showed the fig to the Pope and created a national church; the king was executed first; they created a constitutional monarchy for themselves, relegating the monarch to the background; driving on the left and... money. Yes, yes, money. The English were the last to adopt the decimal system - only in 1971, which often infuriated those who visited Albion before that date. For example, in Rus' the decimal system has existed almost since XIII century. That is, from the moment the ruble appeared in the country, which was an elongated block of silver weighing about 200 grams.

Novgorod hryvnia. Since the 13th century, the name ruble began to be used to designate these monetary units.

Sherlock Holmes: " Stop! Stop. Stop. Church of St. Monica. Half a sovereign if you deliver in 20 minutes».

Still from the film “The Adventures of Sherlock Holmes and Doctor Watson. Treasures of Agra"

1686 Guinea

Still from the film “The Adventures of Sherlock Holmes and Doctor Watson. Treasures of Agra"

Ian Mortimer in his book The Time Traveler's Guide to Medieval England ” gives a good example. IN XIV century, a carpenter for making a table received the same amount of money as the cost of the nails needed to make this table 3. Try now to offer the master to work for a day for a handful of nails. At best, he will say that you do not respect other people's work. And in the worst case, he will laugh in your face and send you to hell. However, one should not think that XIV For centuries, the work of a professional was not valued. It’s just that the production of nails required much more resources than now: material, labor, time, and so on.

At the end of the XVI century (200 years after the story of the table) a worker received about 4 pence a day, and in our time the salary of a worker is about 100 pounds (although, of course, a lot depends on the specialty, qualifications and company). That is 6000 times more. At the same time, chicken in the Elizabethan era cost the same 4 pence 2 (a worker’s daily wage), but now for a package of chicken fillet (700 g) you will pay 5 pounds (1/20 of a worker’s daily income). So, given these nuances, it is quite difficult to draw a parallel.

In the XIX over the century, wages have risen, but prices have not stood still. For example, in the 1860s, an ordinary hard worker received 3 shillings 9 pence per day, a craftsman (carpenter, mason) - 6 shillings 6 pence, and an engineer - 7 shillings 6 pence 4. Representatives of the middle class (doctors, lawyers, office employees) naturally earned more. Their annual income ranged from 300 to 500 pounds. And teachers of the highest, so to speak, category and journalists received from 150 to 300 pounds a year. However, a loaf of bread at that time cost 7 pence, a pint of beer in a pub - from 3 to 8 pence (ordinary people spent up to a fifth of their income on drink), a pair of rough boots - 11 shillings, a shirt - 1 shilling 4 pence, socks - 9 pence A second-hand coat could be purchased for 4 shillings. A London cab ride cost 6 pence per mile.

Cab, London, 19th century.

In a word, the British, for the most part, lived by tightening their belts. And in particular, our dear Doctor Watson, who left the army with a pension of 11 shillings 6 pence a day *. Although his father was obviously a wealthy man, since he could afford a watch for 50 guineas, which, as is known, first passed to the eldest son, and then to the faithful companion of the great detective.

Still from the film “The Adventures of Sherlock Holmes and Doctor Watson. Treasures of Agra"

1 http://www. russian - money. ru/History. aspx ? type = content & id =1# label
2 The Time Traveler's Guide to Elizabethan England. Ian Mortimer
3 The Time Traveler's Guide to Medieval England. Ian Mortimer
4 The Spirit of the Age: Victorian Essays. Edited by Gertrude Himmelfarb. Yale University Press
5 Daily Life in Victorian England. Sally Mitchell

I once had an embarrassment with English pounds. One day, while passing by a bank branch, I noticed a favorable exchange rate. I decided to buy, diluting my dollar “currency reserve” with pounds. They gave me nice £50 notes. I put them in a distant cabinet and forgot. Meanwhile, the Bank of England, take and withdraw from circulation the 1994 50-pound banknotes, which are exactly what I had.

With great grief we managed to exchange them for new ones, but at a great loss.

Name of currency in England

Pounds sterling are the most beautiful money I have ever seen. The taste of the British, no matter what area you take, is all right. The pound sterling is the official means of payment in the following countries:

• Wales.
• Scotland.
• England.
• Northern Ireland.

Despite the fact that Great Britain has been part of the European Union since 1973 and until now (despite the referendum on leaving the EU), it has never been part of the eurozone and has always had only its own currency - the pound. The euro is not a legal means of payment in England.

By the way, before World War II, the British pound was the main reserve currency in the world, not the American dollar. In the 30s, the pound had the slang name “cable”, since all transactions on the exchanges at that time were carried out, firstly, in pounds, and secondly, the telegraph was the means of communication.

After World War II, when the British entered a severe economic crisis, the pound lost its status as the main world currency. Since then, the main world currency has been the US dollar. It is interesting that the Americans, unlike the British, never took old banknotes out of circulation. The 1899 one dollar bill is still a full-fledged legal currency.

The pound is also interesting because on the banknotes of the British monarchs only Elizabeth II could be seen, and then on the 50-pound banknotes that had already been withdrawn from circulation. Now all paper English pounds of all denominations depict famous cultural or historical figures of England.

England is one of the few EU countries that has retained its own currency. The national currency of England is the pound sterling (GBP), which is divided into 100 pence (pennies). The pound symbol is £. You can only pay in England in national currency.

Appearance of the currency of England

Coins come in denominations of £2, £1, 50p, 20p, 10p, 5p, 2p and 1p. Notes can be in denominations of £50, £20, £10 and £5.

Approximate prices in England

• Liter of petrol from £1.39 (~70 RUR)
• Can of Coca-Cola 300 ml £0.60 (~30 RUR)
• Taxi ride from £4.20 per mile (~210 RUR)
• Lunch in a cafe from £7 (~350 rub.)
• Hotel night from £30 (~1500 RUR)
• Bus fare (London) £2.2 (~110 RUR)

How much money to take to England is a difficult question, since England is a rather expensive country. It all depends on your needs and capabilities.

Currency exchange in England

As you know, England is a global financial center, so there will be no problems with exchanging money. You can exchange money in England at numerous exchange offices (Bureau De Change) and banks. In both the first and second cases, a commission is charged.

The operating hours of various banks depend on the locality in which they are located. For the most part, banks are open from 09:00-17:00 to serve individuals. On Saturday from 10:00 to 15:00, and Sunday - closed.

ATMs can be found at every step, especially in large cities. The most popular cards are Visa, Maestro and MasterCard, but American Express may not be accepted. This is the most convenient and profitable way to receive money while traveling. Also, cards are accepted in most hotels and restaurants, shops and cafes and clubs. Even at flea markets, sellers have a card payment machine.

Traveler's checks are common in England. To avoid double fees, it is recommended that you receive a traveler's check in pounds. But you will not be able to use them to pay for goods and services.

Tipping in England

As in most countries, tipping is encouraged in England. In restaurants, the tip amount is 10-12% of the order value, but in many establishments the service charge is already included in the bill. Don't forget to check your receipt! In a cafe, no one will expect you to tip, but leaving some change (up to £1) is reasonable. It is not customary to leave a tip in bars and pubs.

You can also leave the change in the taxi, but only if you are really satisfied with everything. ‘Keep the change!’ - no change needed. In hotels, it is up to you whether to tip or not. For good service you can easily be generous with a couple of pounds.

The largest banks in England

• HSBC is one of the world's largest financial services organizations.
• Royal Bank of Scotland is a leading Scottish bank and the second largest UK bank.
• Lloyds TSB - was founded in Birmingham in 1765.
• Barclays - With over 300 years of banking history and expertise, Barclays operates in over 50 countries and is the world's leading financial services provider.
• NatWest is the largest commercial bank in the United Kingdom.