What is the currency in Great Britain? Money and prices in England British money

The pound sterling is the oldest currency in Europe that is still in circulation today. This is the national currency of Great Britain. In addition, it is a legal remedy for the crown lands of the United Kingdom (for example, the Isles of Man and Guernsey) and other British territories (we are talking, for example, about the Falklands, Gibraltar, the Ascension Islands and Tristan da Cunha). The letter code of the British pound is GBP. This is a generally accepted abbreviation of the full name of the currency - Great Britain Pound.

Traditionally, the pound is denoted by the symbol £ - a capital handwritten letter L with one or two horizontal lines.

History of the pound sterling from the 8th to the 17th centuries

The pound sterling appeared in the eighth century. The appearance of the currency is associated with the estate of Offa, the ruler of Mercia and East Anglia. It was under him that the minting of the penny coin was started and the penny coin was introduced into circulation (the name “sterling” appeared much later). And the unit of weight common in Britain at that time was the pound. One pound (373 grams) contained 240 pennies. That is, it turns out that people paid for goods in pounds of coins.

From the 8th to the 13th centuries, the penny was the most common coin in English territory. Even though smaller denominations of money were also minted, people preferred to divide the penny into two or four parts and pay in those parts.

Until 1158, coins were made of pure silver. Since 1344, silver began to be replaced by gold, this is especially true for large denominations of English money. But the penny remained silver, and its value constantly decreased. By 1544, these coins were no longer minted entirely from silver; the precious metal began to be diluted with ordinary copper.

Another important date in the history of the British currency is 1487 This year the shilling was introduced into circulation(at that time in England the duodecimal monetary system was used and a shilling was equal to 12 pence). And the first pound gold coin was issued in England in 1489 - it received the special name “sovereign”.

And in 1663, another popular gold coin appeared - the guinea., worth 21 shillings. The guinea was minted until 1813, and at some point it even managed to seriously supplant the sovereign.

Particularly worth mentioning is the so-called Scottish pounds. Initially, they were no different from those made in England, but then the standard of the metals used in them began to decline. As a result, in 1603, the monarch James VI decided to consider 1 pound sterling equal to 12 Scots pounds. And about a century later, Scottish pounds were completely withdrawn from circulation and exclusively English coins and banknotes began to circulate throughout the island.

Why is the pound sterling called this way?

The most credible version of the origin of the name of the currency was proposed by a researcher named Pinchebeck. He concluded that Northern Germany, which had developed trade relations with England in the 12th century, used coins made from a unique silver alloy for payment. It was called "Easterling Silver" ("silver from the lands in the east").

The English ruler Henry II liked this alloy, and during his reign many coins began to be minted exclusively from it. In everyday conversations the phrase "Easterling Silver" changed to "Sterling Silver". This is where the name familiar to our ears allegedly came from - pound sterling. In 1694, when the English bank first began printing banknotes, this name appeared on them, which means it became official. A year later, the Bank of Scotland was created, and it also began to issue money from paper. Thus, banknotes, along with coins, became a legal means of payment.

History of British currency from the beginning of the 17th to the middle of the 20th century

The more the size of the British Empire grew, the more special varieties of pounds began to appear, which were in circulation in specific subordinate colonies. These means of payment were called respectively - New Zealand, Zambian, Australian, Rhodesian pound... And all of them were strictly tied to the main currency - the pound sterling itself. As a result, a gigantic “sterling zone” was formed - the pound became the main world currency and the basis of the financial reserves of many countries on the planet in the 18th and 19th centuries. Later it was replaced in this capacity by the American dollar.

In 1816, Britain established an official gold standard (it was the first in the world to do so). And since 1817, 917 gold began to be used for the production of sovereigns. The production of such coins continued until the First World War. But then the sovereign began to disappear from the domestic market. And in 1932, its minting ceased due to the fact that the notorious gold standard was abolished. Nowadays, genuine sovereigns are found, as a rule, in museums and numismatist collections.

Pound after Bretton Woods agreements

This package of agreements, signed in 1944, became landmark for the history of money and the world economy. The Breton Woods agreements, among other things, established a rigid exchange rate between the pound sterling and the dollar: 1₤ was equal to $4.03.

At the end of World War II, the economic situation in Great Britain left much to be desired - the consequences of the confrontation with Hitler were taking its toll. The United States, on the contrary, has strengthened its position. All this led to the fact that the pound sterling quickly lost its status as the most significant currency. And already in 1949, the British authorities were forced to seriously adjust the exchange rate downward - the pound began to cost only $2.80.

In the sixties, new serious preconditions appeared to change the value of the British currency. It was trading lower on the stock exchanges, and then the authorities put the national currency under tighter control. In particular, restrictions were established on the export of cash in pounds abroad (no more than ₤50 at a time).

In 1971, Britain finally adopted the decimal system - that is, the pound was equated to 100 pence, and not to 240, as it was before. And therefore, on new small coins until 1982, the word “New” was minted in a prominent place, which made it possible to distinguish them from the old ones.

In mid-1972, the “free-floating exchange rate” regime was introduced, and it is still observed by the British authorities. That is, the value of the pound sterling began to be determined only by inflation and trading on foreign exchange markets. True, the consequences of the transition to a floating exchange rate in the short term were not very good: in 1976, the pound fell slightly again.

A the lowest figure was recorded in February 1985 - in that month the pound was equal to $1.05. On the other hand, in the early nineties and mid-2000s, there were periods when the pound sterling was worth more than $2 (and, in fact, was the most expensive currency on the planet). The current figures are somewhat more modest: in May 2017, 1₤ was approximately $1.3.

Pound sterling and euro

The relationship between the United Kingdom and the European Union became a big test for the pound. Britain joined the EEC (the organization that is the ancestor of the European Union) back in 1973. But the transition to the euro never happened. In particular, because the British have always been proud of their currency, which has a history of more than a thousand years.

The key moment in this issue was the holding of a referendum in mid-2016, where citizens of the Kingdom decided whether the UK should leave the EU. The majority of votes were in favor of leaving, and now the pound sterling is not in danger of being replaced by the euro in principle.

Pound sterling today: banknotes and value for the global economy

The value of the pound as a reserve currency, as already noted, declined significantly in the second half of the 20th century. However, the fact that it is second only to the dollar and euro in terms of presence in the gold and foreign exchange reserves of other countries is already a significant result. The stability of the British economy and reasonable steps by the leadership contribute to a high level of confidence in this currency throughout the planet.

The Bank of England today issues only 4 banknotes - in denominations of 5, 10, 20 and 50 pounds sterling. There are 2 series of these banknotes - E and F. Moreover, the F series is characterized by the presence of additional security measures - kinegrams and luminescent protection. AND on any of the banknotes, regardless of the denomination and series, there is an image of Elizabeth II.

However, banks in Northern Ireland, the Isle of Man, Scotland and so on also issue pound notes and coins. And there are significant differences between banknotes of different territories. It is believed that banknotes issued, say, in Scotland, have equal rights as a means of payment throughout the UK (but not outside its borders). But in practice, even this rule is not followed by some. Thus, some small private establishments in England sometimes do not accept banknotes that were printed in Northern Ireland or the Isle of Man. And it won’t even be possible to sue anyone for this due to the fact that in England there is a special specific restriction on the concept of a means of payment.

GBP(sign: £; code: GBR) is the monetary unit of the United Kingdom of Great Britain and Northern Ireland. One pound sterling is equal to 100 pennies.

Circulation area of ​​the Pound Sterling:

United Kingdom of Great Britain and Northern Ireland (comprising England, Scotland, Wales and Northern Ireland), Isle of Man as its national currency; as parallel currency the crown lands of Guernsey, Jersey and St. Helena, Ascension and Tristan da Cunha; as legal tender in British overseas territories: Falkland Islands, Gibraltar.

Pound sterling rates:

• Pound sterling (GBR) to ruble (RUB) exchange rate online now on the Forex exchange
• Rates, exchange rates for cash pound sterling to ruble in banks for today

History of the Pound Sterling.

The pound sterling is one of the oldest, as well as one of the most expensive and stable currencies in the world.

One of the versions of the origin of the name of the currency - the name “pound sterling” appeared in the 12th century and originally meant literally “a pound of pure silver”, consisting of 240 silver coins, the total weight of which was 1 pound. It was also convenient to use this measure as a way to check the weight of coins - if the weight of 240 silver coins was not equal to 1 pound, then the coins could be counterfeit.

The first sterling coins were minted in Britain in 1066. Almost a century later, in 1158, King Henry II designated sterling as the official English currency.

In 1694, the Bank of England began issuing paper pound notes.

In February 1971, the exchange part of the pound was brought to the decimal system. In connection with this, bronze coins were minted in 1/2, 1 and 2 pence. In April 2008, the production of new style coins began.

For some coin denominations, amounts are established within which they are legal tender and are accepted for payment:

Banks of the territories that are part of the Kingdom (Scotland, Ulster, Wales) issue pound sterling banknotes with their own artistic and compositional design. By law, these notes must be accepted by all banks in the UK.

The UK is part of the European Union, but despite this the country has not switched to the single European currency - the euro. One reason is that the royal family owns shares in the Bank of England.

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 clinks loudly with 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’s. 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; left-hand traffic 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 grams) 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

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 it has been the only national currency of 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.

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 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.

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 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 dropped 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.

The interest on the pound in general reserves has increased in recent years. 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 the amount in one check from 50 pounds.

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