The origin of the English currency is the history of the pound. British Pound Sterling (GBP) Pence to Pound

“His salary was ten shillings a week, and the family could barely make ends meet.”
“With a few pence he bought bread and cheese and had breakfast.”
“If you deliver this letter to the address, you will receive a guinea.”

“What is the difference between a pound and a guinea and how do they compare to crowns, pence and shillings?” - a question arises in any modern reader.

Today, most countries have adopted a decimal monetary system: there is a main monetary unit that is equal to a hundred small units. Great Britain switched to the decimal system only in the second half of the twentieth century. The main currency was the pound sterling, the small change was the penny. From the time of King Charlemagne until recently, there was such confusion in the monetary system that, perhaps, only the British themselves, distinguished by accuracy and pedantry in everything, could understand it.

Let's try to figure it out too.

Before 1971, the relationships between monetary units looked like this:

One pound thus contained 4 crowns, or 8 half-crowns, or 10 florins, or 20 shillings, or 240 pence, or 960 farthings.

The pound sterling has been the main monetary unit of England since 1694, when the issue of corresponding banknotes began. However, the word itself appeared much earlier, back in the 12th century. And, oddly enough, it meant... pound sterling! Sterling was a small silver coin, so small that it was sometimes considered worth its weight.

The sovereign is a gold coin minted since 1489 and equal to 20 shillings. As can be easily seen, the sovereign was a coin corresponding to the paper pound sterling.

The Guinea is a gold coin that was first minted in 1663 from gold brought from Guinea. It was valued slightly more than a pound and a sovereign. Until recently, if the amount of 21 shillings appeared somewhere in financial calculations, it was automatically renamed to a guinea.

The penny is a small coin that originated in the 8th century. It was first minted from silver, from the end of the 18th century - from copper, and from the second half of the 19th century - from bronze.

In 1849, an attempt was made to bring the English monetary system to a decimal system. Then a florin arose, equal to one tenth of a pound. However, nothing changed, except that another type of coin appeared in the country, which circulated along with the traditional shillings and crowns.

The people of Great Britain themselves were not confused by this complex system. On the contrary, there was some peculiar convenience in it - the nobility carried out payments in pounds and guineas and never held a farthing in their hands, and the poor did not see anything larger than pence and shillings.

In 1966, the British government began to think about monetary reform. But to carry out the reform quickly meant destroying the centuries-old customary way of English life. Therefore, only 3 years later, in 1969, the inhabitants of Great Britain were presented with a 50 pence coin - the first step towards a decimal system. In 1971, the country officially switched to the decimal system, but until 1982, old and new coins circulated in parallel. New, “decimal” pence could be distinguished by the inscription “New penny”.

In modern English, the word pound is used to denote the amount of money (for example, This car costs 10,000 pounds), and the word sterling is used to distinguish the British currency from the currencies of other countries (The dealer bought sterling and sold US dollars). In colloquial language, the word quid can be used to refer to the same pound sterling.

The pound sterling currently remains the oldest currency in Europe that is still in circulation. Now the pound sterling whose history began back in 700. AD continues to be used as the national currency of Great Britain and a number of other lands and countries that have accepted it as a legal means of mutual settlement, or is equalized with local money.

For several centuries, the pound sterling currency has occupied one of the main positions in the world economy. Before, the British pound was used as the basis for the monetary reserves of almost all countries in the world. Even after its primacy has passed, it still remains the third most important currency in any portfolio, both in countries' reserve reserves and in the calculation of special borrowing facilities used by the IMF.

Etymology of name and designation

The British currency has a compound name. Usually only the pound is used, alternatively the British pound can be called, in order to indicate accurately. History dates the year 775 as the year the 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, left the definition for the monetary unit, but divided it into 20 shillings, with each of them weighing 12 pence. Later in history, the prefix sterling returned.

Pence has been used since the advent of proper money in English history and in the modern division of the pound sterling. However, its weight and share most of the time were calculated using the 12-digit system, which resulted in 240 coins in one measure. The now familiar and integral decimal division system became quite problematic in Great Britain only in the second mid-twentieth century.

Like any modern currency, there is a symbol for the pound sterling. To determine amounts calculated in pounds, the symbol ₤ or even its simplified but equivalent version £ is used. The symbol is based on the letter L, which is part of the abbreviation LSD (labra, solidi, denarii). Initially, this is how the division of English monetary units took place according to established rules that have been preserved since the times of the Roman Empire. Libra is a unit of weight.

Otherwise, the English pound sterling is denoted by the letter code GBP (ISO 4217 826), which means Great Britain Pound. Other designations you may sometimes see, such as UKP, are not official. Mostly in the share market and accompanying analyst reports, you can see the designation GBp (GBX), which determines the specified amount in pence.

History of British money

The history of the British pound begins with the formation of the Anglo-Saxons. During the reign of King Joffa of Mercia, the penny was introduced, similar to the denarius previously used in the Roman Empire and all subject lands. Then the measure of weight was the pound established by Charlemagne, which just fit 240 pennies. The distribution of these coins throughout modern England allowed them to gain a foothold both in the pockets of merchants and in history. Later, another name for the penny appeared - sterling.

In medieval England, during the history of trade and economic relations, the standard of coinage silver used to this day was born. Until 1158, coins were made from pure silver, at least as pure as it was possible to remove impurities at that time. However, Henry II, as king, decided to introduce .925 silver as a standard, which contained 7.5% impurities. Until 1816, coins made of .925 silver were in use; they wore out less and were therefore more practical.

Beginning in 1344, silver was exchanged for gold, at least for larger denominations, while the silver value of the penny declined over the same period. The story of the decline in the value of the penny continued further. By 1544, silver coins had ceased to be made from coin silver; it was diluted with two parts of copper. At the same time, the pound sterling coin was equal to the troy pound or, in another representation, 5760 grains. It turns out that in the 16-17 centuries. the value of the full-fledged gold pound sterling grew, albeit intermittently, but its components, shillings and pennies, on the contrary, lost value. As a result, one pound contained up to 60 shillings by weight.

In 1603, the Scottish pound was equated to the British pound, but subsequently the latter fell in value; 12 Scots pounds were already required to replace one English pound. In 1707, the Scottish pounds were abolished, and only British money and its fractional parts were in circulation throughout the island.

We can say that Great Britain was the first in history to introduce the gold standard, although at first it was not official. It so happened that gold was constantly imported into the country by merchants, and silver, on the contrary, was exported in incredible quantities. As a result, at the turn of the 17th and 18th centuries, the value of gold grew rapidly, but it was also necessary to urgently take measures to return part of the silver from abroad in order to cover the deficit.

The date of birth of the progenitor of the modern pound sterling can be considered 1694, when the Bank of England was formed. Just a year later the Bank of Scotland was founded and the two began issuing England's first paper money. Banknotes became legal tender along with gold and silver coins.

Only since 1816 was the gold standard used at the official level, which clearly indicated the correspondence of the pound sterling to a certain amount of gold. At the same time, new sovereign coins were introduced containing 113 grains of gold or 22 carats.

In other countries, the gold standard began to be used throughout the 19th and 20th centuries. The ratio of currencies was carried out in relation to gold and agreements on the exchange of banknotes. At that time, the Latin Monetary Union had already been created, but after much deliberation, Great Britain did not become involved in it and therefore continued to compare its British pound sterling with other European monetary systems through general agreements.

Pound Spread

Following the spread of the influence of the British Empire in the world, an increasing number of pounds began to appear, which were in circulation in the colonies and subject territories. Local money was called, respectively, Cypriot, Australian, New Zealand, Southern Rhodesian, etc. pound and had a rigid peg with the main UK currency - the pound sterling. This is exactly how the so-called sterling zone was formed in history.

Bretton Woods Agreement, the beginning of the rise of the US dollar

In 1940, an agreement was signed between the United States and Great Britain, which introduced a rigid exchange rate with the US dollar. 1₤ was worth 4.03 dollars. This ratio remained in force until the end of the war. It was also enshrined and confirmed by the Bretton Woods Agreement, a key agreement in the modern economic history of the world.

Just 4 years after the end of World War II, the government was forced to reduce the price by as much as 30%, which created a new rate of $2.80 per pound sterling. Only in the 1960s did the prerequisites for a change in the value of the UK currency reappear. It seemed overvalued, and therefore was traded lower on the stock exchanges. At this point, it was decided to introduce stricter control over the state of the national currency. Restrictions were even introduced on the possibility of taking money abroad in the amount of ₤50.

Pound decimal conversion

A tangible blow to the average person was the transition to the decimal system of dividing the pound. Historically, the pound was divided into 20 shillings and each of these was divided into an additional 12 pence. However, throughout the rest of the world, the division of the main monetary unit into 100 (1000) fractional parts has been used for a long time.

The transition was made in 1971. The new fractional to the pound began to be called the new penny to distinguish it from previous similar names.

The changing value of the pound

The British pound began to lose its dominant position in the world starting in the mid-20th century. At this moment, many countries that were previously part of the sterling zone decided to switch to their own money, pegged not only to the pound, but also to the US dollar, and multi-currency baskets were formed to form reserves. The second important factor that influenced the decline in the value of the British currency was, again, British dealers. They independently, through their own efforts, created a powerful springboard for the development of the dollar.

The main blow to the pound came in the 1970s. Another crisis has broken out. The IMF, by its decision, wanted to reduce the exchange rate of the pound against the dollar to the level of 1.5, after which it actually fell to $1.57. The ensuing loan of £2 billion from the IMF pushed the currency further into decline. As a result, by 1985, a record drop to $1.05 per pound sterling note was recorded. Only in the 1990s was it able to gain strength again and reach a rate of $2.

Another attempt to enter the pan-European exchange rate regulation system took place in 1990, when the decision was made to join the EMR. But they only managed to stay in the system for 2 years. Already in 1992, on a day later called “Black Wednesday,” it was decided to leave the exchange rate mechanism. The prerequisite was the state of the state’s economy at that time. It is noteworthy that it was on that day that the world famous George Soros managed to earn $1 billion from the fall of the pound.

At the same moment, a sharp increase in the interest rate from 10% to 15% was announced, which could not but affect the state of the economy and the exchange rate.

To stabilize the exchange rate, a decision was made in 1997 to grant the Bank of England the right to set a fair interest rate in order to maintain inflation at 2%. If there is a deviation from this indicator of more than 1% in any direction, the bank manager must appear before parliament and explain the reasons that led to such a change. It also proposes mechanisms aimed at stabilizing the situation. It is noteworthy that after the Bank of England was vested with such powers, the governor had to speak before parliament only once, in 2007, after inflation increased to 3.1%.

European Union and euro

Being a member of the European Union, Great Britain still remains with its national currency. The pound sterling, whose history began more than a thousand years ago, remains one of the few monetary systems that has not been replaced by a single European currency. The issue of switching to the euro was raised several times, and each time was postponed until later. This approach is based on the peculiarities of the UK economy and the monetary policy of the Bank of England. It has been repeatedly confirmed that the approach to stabilizing the economy and stimulating it differs between England and the rest of the European community.

The key moment was the holding of a referendum on the inclusion of Great Britain in the eurozone. Slightly more than half of the population expressed a strictly negative opinion on this matter, only a third agreed with the introduction of the euro. This is how the pound sterling continues its history. Perhaps one of the significant reasons why the population does not want to lose their usual money is that it is associated with a national treasure. Therefore, they are unlikely to simply abandon it. On top of this, according to the government, the transition to the euro is in no way consistent with strengthening national interests and the domestic economy.

For a long time after the introduction of the euro, it, together with the pound sterling, was considered on equal terms and was even included in foreign exchange portfolios on equal terms; their rates were almost the same in relation to the US dollar. However, after 2006-2007. the story has changed somewhat. The upward change in interest rates caused the pound to strengthen significantly against the euro and then against the US dollar, reaching a 15-year high in April 2007. After the 2008 crisis, the pound rapidly fell from $2.1 to 1.25, almost reaching a historical low.

Banknotes

The Bank of England began issuing pound sterling notes in 1694. The denomination of the banknotes was variable and was indicated at the time the banknote was printed. There were also cases of using a fractional number when indicating the value of banknotes. In addition to this, the Bank of Scotland began issuing banknotes in 1695. Despite the fact that the transition to the British pound was not carried out completely, and Scotland’s own monetary units remained in use, banknotes were still issued only in sterling. In the 1790s, a fixed range of denominations from ₤5 to ₤1000 appeared.

In Ireland, banks began issuing banknotes only in 1825, when the British pound began to circulate freely there. However, the range of denominations was limited and the largest denomination was ₤100.

In order to limit the number of types of banknotes issued, a law was passed according to which, from 1826, the issue of paper money was allowed only to banks located within London and its environs at a distance of no more than 65 miles. After this, already in 1944, the issuance of permits for new banks to issue their own pound sterling banknotes was stopped altogether. Private money, which had a rich range of designs and denominations, existed until the 1920s.

To reduce the number of gold coins, in 1914 it was decided to print banknotes in denominations of 10 shillings and one pound sterling. The decision was made by the Ministry of Finance, and it also implemented the issue. These banknotes existed until 1928, replaced by banknotes of the corresponding denominations of the Bank of England.

Only the Second World War was able to disrupt the process of issuing banknotes in the history of England. There were not unfounded fears that Germany would be able to put into circulation a huge mass of counterfeit pounds sterling, thereby collapsing the country's economy, which was already in a terrible state due to the war and constant bombing. A rather strange and at the same time practical decision was made to cancel the issue of banknotes with denominations above ₤10. For some reason this did not concern the banks of Scotland and Ireland.

In the post-war period and to this day, many series of banknotes have been issued, each of which differed from the previous one to maintain security and prevent the appearance of counterfeits. Banknotes of the “E” and “F” series are currently in circulation. The E series was revised in the early 2000s.

The issue of modern banknotes is carried out not only by the Bank of England, but also by banks in Scotland and Northern Ireland, Crown Lands and British Overseas Territories. Officially, banknotes issued in Scotland or Ireland have equal legal tender throughout the UK. However, in practice this is not followed. So, some small organizations and institutions in England may not accept banknotes printed in Northern Ireland or elsewhere, although they have every right to do so, because in principle, the laws of England very strangely limit the concept of legal tender.

Banknotes issued by different banks may differ from each other, for example, they add their own national motifs or bank identifiers other than the Bank of England.

The value of the pound in the international financial arena

At the moment, the valuation of the British pound against other currencies of the world is determined according to the principles of a floating exchange rate. The value of the pound as a reserve for countries decreased after the Second World War, but today it is second only to the currency systems of the United States and the European Union in the currency baskets of different countries. The main weighing influence on the pound is the inflation indicator, and the Bank of England interest rate is combined with the state of the economy, which is somewhat different from the overall European one. The pound sterling, whose history has been developing for a very long time, constantly remains in the focus of attention of currency dealers, is highly valued all over the world, occupying not the last place among the most expensive money in the world.

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(an 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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Pound sterling is the monetary unit of Great Britain. 1 pound = 100 pence. Symbol: £ (Latin Libra - pound), bank code: GBP (Great Britain Pounds), the outdated abbreviation UKL (United Kingdom Libra) is also sometimes used. Banknotes in circulation are 5, 10, 20, 50 pounds; coins of 1, 2, 5, 10, 20, 50 pence, 1, 2 pounds. 1/2, 25 pence and 5 pound coins are rare.

Banks of individual territories within Great Britain (Scotland, Ulster, etc.) issue banknotes with their own designs. Formally, these banknotes must be accepted by all UK banks, but in practice there are cases of refusal.

Story

There are several versions of the origin of the name pound sterling. Some sources believe that the name appeared in the 12th century and originally meant literally “a pound of pure silver.” This is related to the "sterling" - an ancient English silver coin. The 240 coins weighed 1 Tower pound (5400 grains, about 350 grams) or 1 Troy pound (about 373.24 grams). Large purchases were expressed in “pounds sterling.” On the other hand, it was a way to check the weight of the coins - if the weight of 240 coins was not equal to 1 pound, the coins could be counterfeit or too worn.

In 1955, the Oxford English Dictionary suggested that the name sterling dates back to around 1300 and comes from the common name for a silver Norman penny that had small stars on it (Old English: steorling).

The most widely accepted theory is that of Walter de Pinchebek, which states that the name "Easterling Silver" was previously used to refer to the characteristic .925 silver alloy used to make coins in northern Germany. This area of five cities was called “Easterling” by the British; in the 12th century it became part of the Hanseatic League (Hanse). This district had its own representative office (“office”) in London and conducted active trade with England, paying for goods with local coins that were of high quality and hardness (pure silver is too soft and wears off quickly). King Henry II made this alloy the standard for English coins starting in 1158. Gradually in speech the name of the alloy was shortened to “Sterling Silver” and became the equivalent of “coin silver”.

The name was finally assigned to the monetary unit in 1694, when the Bank of England first began issuing banknotes.

In modern English, the word pound is used to denote British money (English pound, for example, This car costs 10,000 pounds). To distinguish the British currency from the currencies of the same name in other countries, the full form pound sterling is used in official documents. In exchange practice, the name sterling (English sterling, for example, The dealer bought sterling and sold US dollars) has become widespread. In less official texts the term British pound appears. In colloquial speech the word English is used. quid, the origin of which is seen in the Latin phrase “quid pro quo”.

1990-1993

1999 - 2002

COINS

Decimal coin system

These coins first appeared in 1968. These were 5 (5p) and 10 (10p) pence coins, which were equivalent to and were in regular circulation with 1(1/-) and 2(2/-) shilling coins. A curved equilateral heptagon, the 50p (50p) cupro-nickel coin replaced the 10/- shilling note in 1969. The decimal coinage system came into force when the number of such coins reached general circulation and the introduction of bronze half, one and two pence coins in 1971 and the withdrawal of 1(1d) and 3(3d) penny coins from circulation. Old sixpence (6d) coins circulated at a value of two and a half pence until 1980. In 1982, the word "new" was removed from minted coins, and a 20p (20p) coin was introduced, following the one pound (£1) coin in 1983. The halfpenny (½p) coin was last minted in 1983 and went out of circulation in 1984. The early 1990s saw a change in coin material from bronze to copper-plated steel and a reduction in the size of the 5p, 10p and 50p coins. The old one shilling coins, which remained in circulation with a value of 5 pence, were withdrawn from circulation in 1991, followed by a reduction in the size of the five penny coins, and the two shilling coins were also withdrawn from circulation in 1993. The bimetallic two pound (£2) coin was introduced into circulation in 1998.

Currently, the oldest circulating coins in the UK are the one penny (1p) and two penny (2p) copper coins, first introduced in 1971. Before the introduction of the decimal coinage system, coin change could contain coins that were a hundred years old or more, with any of the five monarchs on the obverse.

In 1992, the material composition of the one (1p) and two penny (2p) coins changed from bronze to copper-plated steel. New steel-core coins can be selected using a magnet, while all-bronze coins will be phased out of regular circulation. Today Britain remains one of the few modern countries where a large number of coins have a value similar in value to the "gold" guarantee of old sovereigns.

In April 2008, an extensive change in coin style was initiated. The new style coins were released into circulation gradually, starting in the summer of 2008. The new 1p, 2p, 5p, 10p, 20p and 50p coin reverses contain part of the Royal Shield, while the new pound coin contains the entire shield. The coins have the same characteristics as the old style coins (which are still in circulation).

An interesting incident is associated with the change in the appearance of coins in 2008. In 2008, the Royal Mint minted both old and new types of coins, and in November 2008 a number of twentypence coins were issued without any date. This happened due to the fact that on the old coins of this denomination the date was placed on the side opposite the portrait of Queen Elizabeth II (reverse), while on the new coins the date is placed exactly on the side where the portrait is located (obverse) ( see pictures). When minting the “wrong” coin, the old obverse stamp (without date) and the new reverse stamp (also without date) were mistakenly used. According to official information (Royal Mint website), this deficiency affected no more than 250,000 coins out of 136,000,000 twenty-pence coins issued this year. According to unofficial data, this is the first British coin without a date in the last 300 years.



	June 1990

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.

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.