Pound sterling
All frequently used coins (coins shown are those before the extensive 2008 redesign)
ISO 4217 Code	GBP
User(s)	United Kingdom Crown dependencies Certain British Overseas Territories
Inflation	3. The standard circulating coinage of the United Kingdom is denominated in pounds sterling ( symbol "£") and since the introduction of the two pound ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located The Crown Dependencies are possessions of The Crown in Right of the United Kingdom, as opposed to overseas territories or colonies of the United The British Overseas Territories are fourteen territories that are under the Sovereignty of the United Kingdom, but which do not form part of the United Kingdom In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time 0% (UK CPI April 2008) 4. The official measure of Inflation of consumer prices of the United Kingdom is called the Consumer Price Index (CPI It is also called the 2% (UK RPI April 2008) 4. 8% (Guernsey RPI March 2008) 3. 7% (Jersey 2006) 3. 1% (Isle of Man 2006)
Source	National Statistics, The World Factbook and Guernsey Government
ERM
Since	8 October 1990
Withdrawn	16 September 1992 (Black Wednesday)
Pegged by	FKP, GIP, SHP
Subunit
1/100	penny
Symbol	£
penny	p
Nickname	quid
Plural
penny	pence
Coins
Freq. The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979 as part of the European Monetary System (EMS Events 314 - Roman Emperor Licinius is defeated by his colleague Constantine I at the Battle of Cibalae, and loses Year 1990 ( MCMXC) was a Common year starting on Monday (link displays the 1990 Gregorian calendar) Events 1400 - Owain Glyndŵr is declared Prince of Wales by his followers Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) In British Politics and Economics, Black Wednesday refers to the events of 16 September 1992 when the Conservative A fixed exchange rate, sometimes called a pegged exchange rate, is a type of Exchange rate regime wherein a Currency 's value is matched to the value of The pound is the currency of the Falkland Islands, a British Overseas Territory in the South Atlantic Ocean. The pound ( Currency sign: £; banking code: GIP) is the currency of Gibraltar. The Saint Helena pound (also called simply " pound " is the currency of the British overseas territories of Saint Helena and A penny (pl pence or pennies) is a Coin or a unit of Currency used in several English -speaking countries A currency sign is a graphic symbol often used as a shorthand for a Currency 's name See also Pound (currency.The pound sign (" £ " or " ₤ " is the symbol for the Pound sterling —the currency of the A penny (pl pence or pennies) is a Coin or a unit of Currency used in several English -speaking countries Plural is a Grammatical number, typically referring to more than one of the Referent in the real world A penny (pl pence or pennies) is a Coin or a unit of Currency used in several English -speaking countries The standard circulating coinage of the United Kingdom is denominated in pounds sterling ( symbol "£") and since the introduction of the two pound used	1p, 2p, 5p, 10p, 20p, 50p, £1, £2
Rarely used	£5 (commemorative)
Banknotes
Freq. Sterling banknotes are the Banknotes of the United Kingdom and British Islands, denominated in pounds sterling (symbol £ used	£5, £10, £20, £50
Rarely used	£1 (Scotland only), £50, £100 (Scotland & Northern Ireland only)
Central bank	Bank of England
Website	www.bankofengland.co.uk
Printer	printers English (inc. A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom A printer is a company that provides commercial Printing services often also offering Typesetting and Book-binding services Wales) notes: Bank of England Scottish notes: Bank of Scotland Royal Bank of Scotland Clydesdale Bank Northern Irish notes: Northern Bank First Trust Bank Ulster Bank Bank of Ireland Crown dependencies: States of Guernsey States of Jersey Isle of Man Government
Website	websites Bank of England Bank of Scotland Royal Bank of Scotland Clydesdale Bank Northern Bank First Trust Bank Ulster Bank Bank of Ireland Isle of Man Government States of Jersey
Mint	Royal Mint
Website	www.royalmint.com

The pound sterling (symbol: £; ISO code: GBP), subdivided into 100 pence (singular: penny), is the currency of the United Kingdom, its Crown dependencies (the Isle of Man and the Channel Islands) and the British Overseas Territories of South Georgia and the South Sandwich Islands,^[1] British Antarctic Territory^[2] and British Indian Ocean Territory. The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom The Bank of Scotland plc is a commercial and Clearing bank based in Edinburgh, Scotland. The Royal Bank of Scotland plc ( Scottish Gaelic: Banca Rìoghail na h-Alba) is one of the retail banking subsidiaries of the Royal Bank of Scotland Group The Clydesdale Bank PLC is a Commercial bank in Scotland, a subsidiary of the National Australia Bank (NAB Group. Northern Bank, is a Commercial bank in Northern Ireland It is one of the oldest banks in Ireland having been formed in 1824. For other banks with a similar name see First Bank. First Trust Bank, part of the AIB Group, is a Commercial bank in Ulster Bank ( Irish: Banc Uladh) is a large commercial Bank, one of the Big Four in both Northern Ireland and the Republic of The Bank of Ireland (Banc na hÉireann, officially known as the Governor and Company of the Bank of Ireland is a commercial Bank operation in Ireland The Crown Dependencies are possessions of The Crown in Right of the United Kingdom, as opposed to overseas territories or colonies of the United The States of Guernsey ( French: États de Guernesey) is the Parliament of the Island of Guernsey. The States of Jersey ( French: États de Jersey) is the Parliament of Jersey. The Isle of Man (Ellan Vannin ˈɛlʲən ˈvanɪn or Mann (Mannin) is a self-governing Crown dependency, located in the Irish Sea at the geographical A mint is an industrial facility which manufactures Coins for Currency. The Royal Mint is the body permitted to manufacture or mint, coins in the United Kingdom. See also Pound (currency.The pound sign (" £ " or " ₤ " is the symbol for the Pound sterling —the currency of the ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located The Crown Dependencies are possessions of The Crown in Right of the United Kingdom, as opposed to overseas territories or colonies of the United The Isle of Man (Ellan Vannin ˈɛlʲən ˈvanɪn or Mann (Mannin) is a self-governing Crown dependency, located in the Irish Sea at the geographical The Channel Islands ( Norman: Îles d'la Manche, French: Îles Anglo-Normandes or Îles de la Manche) are a group of Islands The British Overseas Territories are fourteen territories that are under the Sovereignty of the United Kingdom, but which do not form part of the United Kingdom South Georgia and the South Sandwich Islands ( SGSSI) is a British overseas territory in the southern Atlantic Ocean. The British Antarctic Territory is a sector of Antarctica claimed by the United Kingdom. ^[3]

This article covers the history of sterling and the issues of sterling in England, Great Britain and the United Kingdom. The Kingdom of England was a State (927-1707 located in Western Europe dating from the ninth or tenth century to the early eighteenth century when it was legally The Kingdom of Great Britain, also known as the United Kingdom of Great Britain, was a State in northwest Europe, in existence from 1707 to 1800 For other associated issues see Manx pound, Jersey pound and Guernsey pound. The Manx pound or Isle of Man pound is a local issue of the Pound sterling, issued by the Isle of Man The pound is the currency of Jersey. Jersey is in Currency union with the United Kingdom and the Jersey pound is not a separate currency but is an issue of banknotes The pound is the currency of Guernsey. Since 1921 Guernsey has been in Currency union with the United Kingdom and the Guernsey pound is not a separate currency The Gibraltar pound, Falkland Islands pound and Saint Helena pound are separate currencies, pegged to the pound sterling. The pound ( Currency sign: £; banking code: GIP) is the currency of Gibraltar. The pound is the currency of the Falkland Islands, a British Overseas Territory in the South Atlantic Ocean. The Saint Helena pound (also called simply " pound " is the currency of the British overseas territories of Saint Helena and

Sterling currently makes up the third-largest portion of global currency reserves, after the US dollar and the euro. A reserve currency (or anchor currency) is a Currency which is held in significant quantities by many governments and institutions as part of their Foreign The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Please update other articles as well to avoid contradiction within Wikipedia e ^[4] The pound sterling is the fourth-most-traded currency in the foreign exchange market after the US dollar, the euro, and the Japanese yen. The foreign exchange ( currency or forex or FX) market refers to the market for currencies. ^[5]

Contents 1 Name 2 Subdivisions and other units 2.1 Decimal 2.2 Pre-decimal 3 History 3.1 Anglo-Saxon 3.2 Medieval 3.3 Tudor 3.4 Expanding to Scotland 3.5 Unofficial gold standard 3.6 Establishment of a modern currency 3.7 The gold standard 3.8 Use in the Empire 3.9 Bretton Woods 3.10 Decimalisation 3.11 The free-floating pound 3.12 Following the Deutsche Mark 3.13 Following the European currency unit 3.14 Following inflation targets 3.15 The euro 3.16 Current strength 4 Coins 4.1 Pre-decimal 4.2 Decimal 5 Banknotes 6 Legal tender and regional issues 7 On the value of British money 8 Value against other currencies 9 The pound as a major international reserve currency 10 See also 11 References 12 External links 12.1 Online currency tools

Name

The full, official name pound sterling (plural: pounds sterling) is used mainly in formal contexts and also when it is necessary to distinguish the currency used within the United Kingdom from others that have the same name. In the English Language, Nouns are inflected for Grammatical number —that is singular or Plural. The pound, a unit of currency originated in England as the value of a pound mass of Silver. Otherwise the term pound is normally used. The currency name is sometimes abbreviated to just "sterling", particularly in the wholesale financial markets, but not in amounts; so "payment accepted in sterling" but never "that costs five sterling". The abbreviations "ster. " or "stg. " are sometimes used. The term British pound is commonly used in less formal contexts, although it is not an official name of the currency. A common slang term is quid (plural quid).

The term sterling is derived from the fact that, about the year of 775, silver coins known as “sterlings” were issued in the Saxon kingdoms,^[6] 240 of them being minted from a pound of silver, the weight of which was probably about equal to the later troy pound. Because of this, large payments came to be reckoned in "pounds of sterlings", a phrase that was later shortened to "pounds sterling". After the Norman Conquest, the pound was divided for simplicity of accounting into 20 shillings and into 240 pennies, or pence. For a discussion of the etymology of "sterling" see Sterling silver. Sterling silver is an Alloy of Silver containing 925% pure silver and 7

The currency sign is the pound sign, originally ₤ with two cross-bars, then later more commonly £ with a single cross-bar. A currency sign is a graphic symbol often used as a shorthand for a Currency 's name See also Pound (currency.The pound sign (" £ " or " ₤ " is the symbol for the Pound sterling —the currency of the The pound sign derives from the blackletter "L", from the abbreviation LSD – librae, solidi, denarii – used for the pounds, shillings and pence of the original duodecimal currency system. Blackletter, also known as Gothic script or Gothic minuscule, was a script used throughout Western Europe from approximately 1150 £sd (pronounced and sometimes written Lsd) was the popular name for the pre-decimal currencies ( sterling) used in the United Kingdom and The duodecimal system (also known as base -12 or dozenal) is a Numeral system using twelve as its base. Libra was the basic Roman unit of weight, derived from the Latin word for scales or balance. The ancient Roman units of measurement were built on the Hellenic system with Egyptian, Hebrew, and Mesopotamian influences Latin ( lingua Latīna, laˈtiːna is an Italic language, historically spoken in Latium and Ancient Rome. A weighing scale (usually just "scale" in common usage except in Australian English where "scales" is more common is a Measuring instrument for The ISO 4217 currency code is GBP (Great Britain pound). ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established Occasionally, the abbreviation UKP is used but this is incorrect. The Crown dependencies use their own (non-ISO) codes: GGP (Guernsey pound), JEP (Jersey pound) and IMP (Isle of Man pound). The Crown Dependencies are possessions of The Crown in Right of the United Kingdom, as opposed to overseas territories or colonies of the United The pound is the currency of Guernsey. Since 1921 Guernsey has been in Currency union with the United Kingdom and the Guernsey pound is not a separate currency The pound is the currency of Jersey. Jersey is in Currency union with the United Kingdom and the Jersey pound is not a separate currency but is an issue of banknotes The Manx pound or Isle of Man pound is a local issue of the Pound sterling, issued by the Isle of Man Stocks are often traded in pence, so traders may refer to pence sterling, GBX (sometimes GBp), when listing stock prices. The penny sterling (plural pence) is a subdivision of Pound sterling, the currency for the United Kingdom.

Subdivisions and other units

Decimal

Since decimalisation in 1971, the pound has been subdivided into 100 pence (until 1981 described on the coinage as "new pence"). In the management of currencies, decimalisation (or decimalization) is the process of converting from traditional denominations to a " Decimal " The symbol for the penny is "p"; hence an amount such as 50p (£0. 50) is usually pronounced "fifty pee" rather than "fifty pence". This also helped to distinguish between new and old pence amounts during the changeover to the decimal system.

Pre-decimal

Prior to decimalisation, the pound was divided into 20 shillings and each shilling into 12 pence, making 240 pence to the pound. The shilling is a unit of Currency used in current and former Commonwealth countries and was continued to be used in countries that left the commonwealth The symbol for the shilling was "s" — not from the first letter of the word, but from the Latin solidus. The solidus (the Latin word for solid) was originally a Gold coin issued by the Romans. The symbol for the penny was "d", from the French denier, from the Latin denarius (the solidus and denarius were Roman coins). The Roman Currency system included the denarius (plural denarii) after 211 BC a small Silver coin, A mixed sum of shillings and pence such as 3 shillings and 6 pence was written as "3/6" or "3s 6d" and spoken as "three and six". 5 shillings was written as "5s" or, more commonly, "5/-".

Various coin denominations had, and in some cases continue to have, special names — such as "crown", "farthing", "sovereign" and "guinea". See Coins of the pound sterling and List of British coins and banknotes for details. The standard circulating coinage of the United Kingdom is denominated in pounds sterling ( symbol "£") and since the introduction of the two pound List of British bank notes and coins, with commonly used terms

History

Following the adoption of the euro by a number of European countries, sterling became the world's oldest currency still in use. Please update other articles as well to avoid contradiction within Wikipedia e

Anglo-Saxon

Main article: Anglo-Saxon pound

The origins of sterling lie in the reign of King Offa of Mercia, who introduced the silver penny. The pound was a unit of account in Anglo-Saxon England, equal to 240 silver pennies and equivalent to one pound weight of silver Offa was the King of Mercia from 757 until his death in July 796 After Rome prelude to the Anglo-Saxon coinage At the end of the fourth century the Roman provinces of Britain were still part of a vibrant and quite efficient economic It copied the denarius of the new currency system of Charlemagne's Frankish Empire. Charlemagne (ˈʃɑrlɨmeɪn Carolus Magnus or Karolus Magnus meaning Charles the Great) (747 – 28 January 814 was King of the Franks from 768 to his Francia or Frankia, later also called the Frankish Empire (imperium Francorum Frankish Kingdom (Latin regnum Francorum, "Kingdom of the As in the Carolingian system, 240 pennies weighed 1 pound (corresponding to Charlemagne's libra), with the shilling corresponding to Charlemagne's solidus and equal to 12d. The pound or pound-mass (abbreviation lb, lbm, or sometimes in the United States #) is a unit of Mass At the time of the penny's introduction, it weighed 22. 5 troy grains of fine silver (30 tower grains; about 1. In many cultures a grain is a unit of measurement of Mass that is based upon the mass of a single seed of a typical Cereal. 5 grams), indicating that the Mercian pound weighed 5,400 troy grains (the Mercian pound became the basis of the tower pound, which weighed 5,400 troy grains, equivalent to 7,200 tower grains). For other uses of the words gram or gramme see Gram (disambiguation. The pound or pound-mass (abbreviation lb, lbm, or sometimes in the United States #) is a unit of Mass At this time, the name sterling had yet to be acquired. The penny swiftly spread throughout the other Anglo-Saxon kingdoms and became the standard coin of what was to become England.

Medieval

The early pennies were struck from fine silver (as pure as was available). However, in 1158, a new coinage was introduced by King Henry II (known as the Tealby penny) which was struck from . 925 (92. 5%) silver. This became the standard until the 20th century and is today known as sterling silver, named after its association with the currency. Sterling silver is an Alloy of Silver containing 925% pure silver and 7 Sterling silver is harder than the fine silver (i. e. 0. 999/99. 9% pure, etc) that was traditionally used and so sterling silver coins did not wear down as rapidly as fine silver coins. The English currency was almost exclusively silver until 1344, when the gold noble was successfully introduced into circulation. The Noble was the first English Gold coin produced in quantity having been preceded by the Gold penny and the Florin earlier in the reigns of However, silver remained the legal basis for sterling until 1816. In the reign of Henry IV (1412-1421), the penny was reduced in weight to 15 grains of silver, with a further reduction to 12 grains in 1464. Henry IV may refer to Henry IV Holy Roman Emperor, the first monarch styled as King of the Romans, signifying he had not yet been anointed and crowned

Tudor

During the reigns of Henry VIII and Edward VI, the silver coinage was drastically debased, although the pound was redefined to the troy pound of 5760 grains in 1526. Henry VIII (28 June 1491 &ndash 28 January 1547 was King of England and Lord of Ireland, later King of Ireland and claimant to the Kingdom of Edward VI (12 October 1537 &ndash 6 July 1553 became King of England and Ireland on 28 January 1547 and was crowned on 20 February at the age of nine Troy weight is a system of units of Mass customarily used for Precious metals Black powder, and Gemstones Named after Troyes In 1544, a silver coinage was issued containing just one third silver and two thirds copper — equating to . 333 silver, or 33. 3% pure. The result was a coin copper in appearance, but relatively pale in colour. In 1552, a new silver coinage was introduced, struck in sterling silver. However, the penny's weight was reduced to 8 grains, meaning that 1 troy pound of sterling silver produced 60 shillings of coins. This silver standard was known as the "60-shilling standard" and lasted until 1601 when a "62-shilling standard" was introduced, reducing the penny's weight to 7 ²³⁄₃₁ grains. Throughout this period, the size and value of the gold coinage fluctuated considerably.

Expanding to Scotland

In 1603, the crowns of England and Scotland were joined but the governments and currencies remained separate. The pound scots, which had begun equal to sterling but had suffered far higher devaluation, was pegged to sterling at a value of 12 pounds scots = 1 pound sterling. The pound Scots (Pund Scots was the national unit of Currency in the Kingdom of Scotland before the country entered into political and Currency union In 1707, with the union of the two kingdoms to form Great Britain, the pound scots was replaced by sterling at the same value. The Kingdom of Great Britain, also known as the United Kingdom of Great Britain, was a State in northwest Europe, in existence from 1707 to 1800

Unofficial gold standard

In 1663, a new gold coinage was introduced based on the 22 carat fine guinea. The guinea coin of 1663 was the first English machine-struck Gold coin. Fixed in weight at 44½ to the troy pound from 1670, this coin's value varied considerably until 1717, when it was fixed at 21 shillings (21/-, 1. Troy weight is a system of units of Mass customarily used for Precious metals Black powder, and Gemstones Named after Troyes 05 pounds). However, despite the efforts of Sir Isaac Newton, Master of the Mint, to reduce the guinea's value, this valuation overvalued gold relative to silver when compared to the valuations in other European countries. Sir Isaac Newton, FRS (ˈnjuːtən 4 January 1643 31 March 1727) Biography Early years See also Isaac Newton's early life and achievements The Royal Mint is the body permitted to manufacture or mint, coins in the United Kingdom. British merchants sent silver abroad in payments whilst goods for export were paid for with gold. As a consequence, silver flowed out of the country and gold flowed in, leading to a situation where Great Britain was effectively on a gold standard. The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold In addition, a chronic shortage of silver coins developed.

Establishment of a modern currency

The Bank of England was formed in 1694, followed by the Bank of Scotland a year later. The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom The Bank of Scotland plc is a commercial and Clearing bank based in Edinburgh, Scotland. Both began to issue paper money, with the issues of the Bank of England gaining greater importance after 1707. During the Revolutionary and Napoleonic wars, Bank of England notes were legal tender and their value floated relative to gold. The Napoleonic Wars (1803-1815 involved Napoleon's French Empire and a shifting set of European allies and opposing coalitions Legal tender or forced tender is Payment that by Law, cannot be refused in settlement of a Debt ( Debtor cannot successfully be sued The Bank also issued silver tokens to alleviate the shortage of silver coins.

The gold standard

In 1816, the gold standard was adopted officially, with the silver standard reduced to 66 shillings (66/-, 2. 3 pounds), rendering silver coins a "token" issue (i. e. , not containing their value in precious metal). In 1817, the sovereign was introduced. A Gold Sovereign is a Gold coin first issued in 1489 for Henry VII of England and still in production as of 2008 Struck in 22-carat gold, it contained 113 grains of gold and replaced the guinea as the standard British gold coin without changing the gold standard. In 1825, the Irish pound, which had been pegged to sterling since 1801 at a rate of 13 Irish pounds = 12 pounds sterling, was replaced, at the same rate, with sterling. The Irish pound ( English) or punt Éireannach ( Irish) was the Currency of Ireland until 2002

During the 19th and early 20th centuries, many other countries adopted the gold standard. As a consequence, conversion rates between different currencies could be determined simply from the respective gold standards. The pound sterling was equal to 4. 886 U.S. dollars, 25. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 22 French francs (or equivalent currencies in the Latin Monetary Union), 20. The franc (represented by the franc sign ₣ or more commonly just F) is a former Currency of France. The Latin Monetary Union ( LMU) was a 19th century attempt to unify several European currencies into a single currency that could be 43 German Marks or 24. The Goldmark (officially just Mark) is the name used for the currency of the German Empire from 1873 to 1914 02 Austro-Hungarian Krones. The Krone or korona ( Österreichisch-ungarische Krone ( German) or osztrák-magyar korona Hungarian) was the official currency Discussions took place following the 1865 International Monetary Conference in Paris concerning the possibility of the UK joining the Latin Monetary Union and a Royal Commission on International Coinage examined the issues,^[7] resulting in a decision against joining monetary union.

The gold standard was suspended at the outbreak of the war, with Bank of England and Treasury notes becoming legal tender. Prior to World War I, the United Kingdom had one of the world's strongest economies, holding 40% of the world's overseas investments. World War I (abbreviated WWI; also known as the First World War, the Great War, and the War to End All However, by the end of the war the country owed £850 million, mostly to the United States, with interest costing the country some 40% of all government spending. In an attempt to resume stability, a variation on the gold standard was reintroduced in 1925, under which the currency was fixed to gold at its pre-war peg, although people were only able to exchange their currency for gold bullion, rather than for coins. This was abandoned on 21 September 1931, during the Great Depression, and sterling suffered an initial devaluation of some 25%. Events 1217 - The Estonian tribal leader Lembitu of Lehola was killed in a battle against Teutonic Knights. Year 1931 ( MCMXXXI) was a Common year starting on Thursday (link will display full 1931 calendar of the Gregorian calendar. ^[8]

Use in the Empire

Main article: Sterling area

Sterling circulated in much of the British Empire. The sterling area came into existence at the outbreak of the second world war. The British Empire was the largest empire in history and for over a century was the foremost global power. In some parts, it was used alongside local currencies. For example, the gold sovereign was legal tender in Canada despite the use of the Canadian dollar. Several colonies and dominions adopted the pound as their own currency. These included Australia, British West Africa, Cyprus, Fiji, Irish Free State, Jamaica, New Zealand, South Africa and Southern Rhodesia. For a topic outline on this subject see List of basic Australia topics. British West Africa was the collective name for British colonies in West Africa during the Colonial period, either in the general geographical sense or Cyprus (Κύπρος transliterated: Kýpros,; Kıbrıs officially the Republic of Cyprus (Κυπριακή Δημοκρατία Kypriakī́ Dīmokratía Fiji (Matanitu ko Viti फ़िजी officially the Republic of the Fiji Islands (Matanitu Tu-Vaka-i-koya ko Viti फ़िजी द्वीप समूह गणराज्य The Irish Free State (Saorstát Éireann (1922&ndash1937 was the state established as a Dominion on 6 December 1922 under the Anglo-Irish Treaty, signed by Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island The Republic of South Africa (also known by other official names) is a country located at the southern tip of the continent of Africa Southern Rhodesia was the name of the British Colony situated north of the Limpopo River and the Union of South Africa, and known today as Zimbabwe Some of these retained parity with sterling throughout their existence (e. g. the South African pound), whilst others deviated from parity after the end of the gold standard (e. g. the Australian pound). These currencies and others tied to sterling constituted the Sterling Area. The sterling area came into existence at the outbreak of the second world war.

Bretton Woods

See also:Economic history of Britain 1945–1959

In 1940, an agreement with the U.S.A. pegged the pound to the U.S. dollar at a rate of £1 = $4. This is a history of the economy of the United Kingdom and of the countries that joined to form it in 1707 and 1801 The United States of America —commonly referred to as the The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 03. This rate was maintained through the Second World War and became part of the Bretton Woods system which governed post-war exchange rates. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states Under continuing economic pressure, and despite months of denials that it would do so, on 19 September 1949 the government devalued the pound by 30. Events 335 - Dalmatius is raised to the rank of Caesar by his uncle Constantine I. Year 1949 ( MCMXLIX) was a Common year starting on Saturday (link will display the full calendar of the Gregorian calendar. 5% to $2. 80. The move prompted several other currencies to be devalued against the dollar.

In the mid-1960s, the pound came under renewed pressure since the exchange rate against the dollar was considered too high. In the summer of 1966, with the value of the pound falling in the currency markets, exchange controls were tightened by the Wilson government. James Harold Wilson Baron Wilson of Rievaulx, KG, OBE, FRS, PC (11 March 1916 &ndash 24 May 1995 was one of the most prominent British politicians Among the measures, tourists were banned from taking more than £50 out of the country, until the restriction was lifted in 1979. The pound was eventually devalued by 14. 3% to $2. 40 on 18 November 1967. Events 326 - The old St Peter's Basilica is consecrated 1302 - Pope Boniface VIII issues the Papal bull Year 1967 ( MCMLXVII) was a Common year starting on Sunday (link will display full calendar of the 1967 Gregorian calendar.

Decimalisation

Main article: Decimal Day

On 15 February 1971, the UK decimalised, replacing the shilling and penny with a single subdivision, the new penny. Decimal Day ( 15 February Events 590 - Khosrau II is crowned as king of Persia 1637 - Ferdinand III becomes Holy Roman Emperor Year 1971 ( MCMLXXI) was a Common year starting on Friday (link will display full calendar of the 1971 Gregorian calendar. The word "new" was omitted from coins after 1981.

The free-floating pound

With the breakdown of the Bretton Woods system — not least because mainly British currency dealers had created a substantial Eurodollar market which made the U. The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states Eurodollars are deposits denominated in United States dollars at Banks outside the United States, and thus are not under the Jurisdiction of the S. dollar's gold standard harder for its government to maintain — the pound was floated in the early 1970s and so became subject to a market appreciation. A floating currency is a Currency that uses a Floating exchange rate as its Exchange rate regime. The Sterling Area effectively ended at this time when the majority of its members also chose to float freely against the pound and the dollar. The sterling area came into existence at the outbreak of the second world war.

A further crisis followed in 1976, when it was apparently leaked that the International Monetary Fund (IMF) thought that the pound should be set at $1. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic 50, and as a result the pound fell to $1. 57, and the government decided it had to borrow £2. 3 billion from the IMF. In the early 1980's the pound moved above the $2 level as interest rates rose in response to the monetarist policy of targeting money supply and a high exchange rate was widely blamed for the deep recession of 1981. Monetarism is a school of economic thought concerning the determination of national income and monetary Economics. In Economics, money supply, or money stock, is the total amount of money available in an Economy at a particular point in time A recession is a contraction phase of the Business cycle. The U At its lowest, the pound stood at just $1. 05 in February 1985, before returning to the US$2 level in the early 1990s.

Following the Deutsche Mark

In 1988, Margaret Thatcher's Chancellor of the Exchequer Nigel Lawson decided that the pound should "shadow" the West German Deutsche Mark, with the unintended result of a rapid rise in inflation as the economy boomed due to inappropriately low interest rates. Margaret Hilda Thatcher Baroness Thatcher LG, OM, PC, FRS (born 13 October 1925 The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all Economic and Financial Nigel Lawson Baron Lawson of Blaby, PC (born 11 March 1932 is a British Conservative Politician who was Chancellor of the Exchequer between West Germany ( Inf German: Westdeutschland or West-Deutschland) was the common English name for the Federal Republic of Germany ( (For ideological reasons, the Conservative Government declined to use alternative mechanisms to control the explosion of credit. Former Prime Minister Edward Heath referred to Lawson as a "one club golfer". Sir Edward Richard George Heath, KG, MBE (9 July 1916 &ndash 17 July 2005 often known as Ted Heath, was Prime Minister of the United Kingdom )

Following the European currency unit

On 8 October 1990 the Conservative government decided to join the European Exchange Rate Mechanism (ERM), with the pound set at DM2. Events 314 - Roman Emperor Licinius is defeated by his colleague Constantine I at the Battle of Cibalae, and loses Year 1990 ( MCMXC) was a Common year starting on Monday (link displays the 1990 Gregorian calendar) The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979 as part of the European Monetary System (EMS 95. However, the country was forced to withdraw from the system on “Black Wednesday” (16 September 1992) as Britain’s economic performance made the exchange rate unsustainable. In British Politics and Economics, Black Wednesday refers to the events of 16 September 1992 when the Conservative Events 1400 - Owain Glyndŵr is declared Prince of Wales by his followers Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) Speculator George Soros famously made approximately US$1 billion from shorting the pound. George Soros (ˈsɔroʊs or /ˈsɔrəs/ Hungarian ˈʃoroʃ (born August 12, 1930, in Budapest, Hungary, as György Schwartz) is In Finance, short selling or "shorting" is the practice of selling a Financial instrument that the seller borrows first (does not own and then

Black Wednesday saw interest rates jump from 10% to 15% in an unsuccessful attempt to stop the pound from falling below the ERM limits. The exchange rate fell to DM2. 20. Proponents of a lower GBP/DM exchange rate were vindicated as the cheaper pound encouraged exports and contributed to the economic prosperity of the 1990s. Since early 2005, the £/€ rate has returned to an average of about £1. 00:€1. 46, which is equivalent to DM2. 85.

Following inflation targets

In 1997, the newly-elected Labour government handed over day-to-day control of interest rates to the Bank of England (a policy that had originally been advocated by the Liberal Democrats). The Labour Party is a Political party in the United Kingdom. Founded at the start of the 20th century it has been since the 1920s the principal party of the The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom The Liberal Democrats, often shortened to Lib Dems, are a liberal Political party in the United Kingdom, formed in 1988 by merging the The Bank is now responsible for setting its base rate of interest so as to keep inflation in the consumer price index very close to 2%. CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer Should CPI inflation be more than one percentage point above or below the target, the governor of the Bank of England is required to write an open letter to the Chancellor of the Exchequer explaining the reasons for this and the measures which will be taken to bring this measure of inflation back in line with the 2% target. The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all Economic and Financial On 17 April 2007, CPI inflation was reported at 3. Events 69 - After the First Battle of Bedriacum, Vitellius becomes Roman Emperor. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 1% (inflation of the retail price index was 4. CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer 8%). Accordingly, and for the first time, the Governor had to write publicly to the government explaining why inflation was more than one percentage point higher than its target. ^[9]

The euro

As a member of the European Union, the United Kingdom has the option of adopting the euro as its currency. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in Please update other articles as well to avoid contradiction within Wikipedia e However, the subject remains politically controversial, not least since the United Kingdom was forced to withdraw from its precursor, the European Exchange Rate Mechanism (see above), having entered the system at the wrong fixed exchange rate. The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979 as part of the European Monetary System (EMS The Prime Minister, Gordon Brown, when Chancellor of the Exchequer ruled out membership for the foreseeable future, saying that the decision not to join had been right for Britain and for Europe^[10]. The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all Economic and Financial

The government of former Prime Minister Tony Blair had pledged to hold a public referendum for deciding membership should "five economic tests" be met to ensure that adoption of the euro would be in the national interest. The five economic tests are the criteria defined by the United Kingdom Government that are to be used to assess the UK's readiness to join the Eurozone and adopt the In addition to this own internal (national) criteria, the UK has to meet the EU's economic convergence criteria (Maastricht criteria), before being allowed to adopt the euro. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in Convergence criteria (also known as the Maastricht criteria are the criteria for European Union member states to enter the third stage of European Economic and Monetary Currently, the UK's annual government deficit to the GDP is above the defined threshold. A budget deficit occurs when an Entity (often a Government) spends more Money than it takes in In February 2005, 55% of the UK were against adopting the currency, with 30% in favour. ^[11] The idea of replacing the pound with the euro has been controversial with the British public because of its identity as a symbol of British sovereignty^[12] and because it would, according to some critics, lead to suboptimal interest rates, harming the British economy.

The pound did not join the Second European Exchange Rate Mechanism (ERM II) after the euro was created. Denmark and the UK have unique opt-outs from entry to the euro. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe Technically, every other EU nation must eventually sign up.

The Scottish Conservative Party claims that there is an issue in Scotland that the adoption of the euro would mean the end of regionally distinctive banknotes, as the European Central Bank do not permit national or sub-national designs of the banknotes. The Scottish Conservative & Unionist Party (informally the Scottish Conservative Party and often referred to as the Scottish Tories) is the part of The European Central Bank (ECB is one of the world's most important Central banks responsible for Monetary policy covering the 15 member countries of the ^[13] The Scottish National Party does not see this as a significant issue, since an independent Scotland would have nationally distinctive coins, and its party policy includes entry into the single currency. The Scottish National Party (SNP (Pàrtaidh Nàiseanta na h-Alba Scottis Naitional Pairtie is a Centre-left political party which campaigns for Scottish The Scottish National Party (SNP (Pàrtaidh Nàiseanta na h-Alba Scottis Naitional Pairtie is a Centre-left political party which campaigns for Scottish

On 1 January 2008 the British sovereign bases on Cyprus (Akrotiri and Dhekelia) began using the euro (along with the rest of the Republic of Cyprus). New Year See also New Year The Ancient Romans began their consular year on January 1st since 153 BC 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Cyprus (Κύπρος transliterated: Kýpros,; Kıbrıs officially the Republic of Cyprus (Κυπριακή Δημοκρατία Kypriakī́ Dīmokratía ^[14]

Current strength

Although the pound and euro are not fixed to one another, there are often long periods where they move together, although since the middle of 2006 this correlation has weakened. Inflation concerns in the UK led the Bank of England to hike interest rates in late 2006 and during 2007, causing sterling to rise to its highest rate against the euro since January 2003. This has had a knock on effect versus other major currencies, and the pound hit a 15-year high against the US dollar on April 18, 2007, having gone through the US$2 level for the first time since 1992 the day before. Events 1025 - Bolesław Chrobry is crowned in Gniezno, becoming the first King of Poland. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. ^[15] Since then the pound has continued to strengthen against the dollar, as have many other world currencies, and hit a 26-year high of $2. 11610 on November 07, 2007. Events 1492 - The Ensisheim Meteorite the oldest Meteorite with a known date of impact strikes the Earth around noon in a Wheat Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. However, since late 2007 the pound began to weaken considerably against the euro, albeit less sharply than the dollar, falling below the €1. 25 border for the first time in April 2008. ^[16]

Coins

Main article: Coins of the pound sterling

Pre-decimal

The silver penny was the principal and often sole coin in circulation from the 8th century until 13th century. The standard circulating coinage of the United Kingdom is denominated in pounds sterling ( symbol "£") and since the introduction of the two pound Although some fractions of the penny were struck (see farthing and halfpenny), it was more common to find pennies cut into halves and quarters to provide smaller change. A farthing (meaning fourth part) was a British coin worth one quarter of a penny and 1/960 of a Pound sterling, slightly over a "mill" Very few gold coins were struck, with the gold penny (worth 20 silver pence) a rare example. This article describes the medieval English twenty pence coin However, in 1279, the groat, worth 4d was introduced, with the half groat following in 1344. 1344 also saw the establishment of a gold coinage with the introduction (after the failed gold florin) of the noble worth 6/8, together with the half and quarter noble. The Florin or Double Leopard was an attempt by English king Edward III to produce a Gold coinage suitable for use in Europe as well as in England The Noble was the first English Gold coin produced in quantity having been preceded by the Gold penny and the Florin earlier in the reigns of Reforms in 1464 saw a reduction in value of the coinage in both silver and gold, with the noble renamed the ryal and worth 10/- and the angel introduced at the noble's old value of 6/8. An Angel is a gold Coin, first used in France (where it was also known as an Angelot and an Ange) in 1340, and introduced into

The reign of Henry VII saw the introduction of two important coins, the shilling (known as the testoon) in 1487 and the pound (known as the sovereign) in 1489. The shilling is a unit of Currency used in current and former Commonwealth countries and was continued to be used in countries that left the commonwealth A Gold Sovereign is a Gold coin first issued in 1489 for Henry VII of England and still in production as of 2008 In 1526, several new denominations of gold coins were added, including the crown and half crown worth 5/- and 2/6. Half crown may refer to Half crown (British coin, a pre-decimalisation coin of the United Kingdom Half crown (Irish coin, a pre-decimalisation Henry VIII's reign (1509-1547) saw a high level of debasement which continued into the reign of Edward VI (1547-1553). Henry VIII (28 June 1491 &ndash 28 January 1547 was King of England and Lord of Ireland, later King of Ireland and claimant to the Kingdom of Edward VI (12 October 1537 &ndash 6 July 1553 became King of England and Ireland on 28 January 1547 and was crowned on 20 February at the age of nine However, this debasement was halted in 1552 and a new silver coinage was introduced, including coins for 1d, 2d, 3d, 4d and 6d, 1/-, 2/6 and 5/-. The threepence was a denomination of currency used by various jurisdictions in England, Ireland, Scotland and Wales, until Decimalisation See also Sixpence (disambiguation The sixpence, known colloquially as the tanner or half-shilling also sprarzi was a British The reign of Elizabeth I (1558-1603) saw the addition of silver ¾d and 1½d coins, although these denominations did not last. Gold coins included the half crown, crown, angel, half sovereign and sovereign. Elizabeth's reign also saw the introduction of the horse-drawn screw press to produce the first "milled" coins.

Following the succession of the Scottish King James VI to the English throne, a new gold coinage was introduced, including the spur ryal (15/-), the unite (20/-) and the rose ryal (30/-). James VI and I (19 June 1566 – 27 March 1625 was King of Scotland as James VI, and King of England and King of Ireland as James The Spur Royal was an extremely rare English Gold coin issued in the reign of King James I. The Unite was the second English Gold coin with a value of twenty shillings or one pound produced during the reign of King James I. The laurel, worth 20/-, followed in 1619. The Laurel was the third English Gold coin with a value of twenty shillings or one pound produced during the reign of King James I. The first base metal coins were also introduced, tin and copper farthings. Tin is a Chemical element with the symbol Sn (stannum and Atomic number 50 Copper (ˈkɒpɚ is a Chemical element with the symbol Cu (cuprum and Atomic number 29 A farthing (meaning fourth part) was a British coin worth one quarter of a penny and 1/960 of a Pound sterling, slightly over a "mill" Copper halfpenny coins followed in the reign of Charles I During the English Civil War, a number of siege coinages were produced, often in unusual denominations. The name Charles I may refer to Kings Charlemagne, Charles I Holy Roman Emperor (742-814 Charles I of England, The English Civil War (1642-1651 was a series of armed conflicts and political machinations between Parliamentarians and Royalists.

Following the restoration of the monarchy in 1660, the coinage was reformed, with the ending of production of hammered coins in 1662. The guinea was introduced in 1663, soon followed by the ½, 2 and 5 guinea coins. The guinea coin of 1663 was the first English machine-struck Gold coin. The silver coinage consisted of denominations of 1d, 2d, 3d, 4d and 6d, 1/-, 2/6 and 5/-. Due to the widespread export of silver in the 18th century, the production of silver coins gradually came to a halt, with the half crown and crown not issued after the 1750s, the 6d pence and 1/- stopping production in the 1780s. One response was the introduction of the copper 1d and 2d coins and the gold ⅓ guinea (7/-) in 1797. The copper penny was the only one of these coins to survive long.

To alleviate the shortage of silver coins, between 1797 and 1804, the Bank of England counterstamped Spanish dollars (8 reales) and other Spanish and Spanish colonial coins for circulation. History Spain Following the introduction of the Guldengroschen in Austria in 1486 the concept of a large silver coin with high purity (sometimes known as "specie" The real was a unit of currency in Spain for several centuries The real was the currency of Spain's colonies in The Americas. A small counterstamp of the King's head was used. Until 1800, these circulated at a rate of 4/9 for 8 reales. After 1800, a rate of 5/- for 8 reales was used. The Bank then issued silver tokens for 5/- (struck over Spanish dollars) in 1804, followed by tokens for 1/6 and 3/- between 1811 and 1816.

In 1816, a new silver coinage was introduced in denominations of 6d, 1/-, 2/6 and 5/-. The crown was only issued intermittently until 1900. It was followed by a new gold coinage in 1817 consisting of 10/- and £1 coins, known as the half sovereign and sovereign. A Gold Sovereign is a Gold coin first issued in 1489 for Henry VII of England and still in production as of 2008 The silver 4d coin was reintroduced in 1836, followed by the 3d in 1838, with the 4d coin issued only for colonial use after 1855. In 1848, the 2/- florin was introduced, followed by the short-lived double florin in 1887. The Double Florin (4/- was one of the shortest-lived British coin denominations ever only being produced between 1887 and 1890. In 1860, copper was replaced by bronze in the farthing, halfpenny and penny.

During the First World War, production of the half sovereign and sovereign was suspended and, although the gold standard was restored, the coins saw little circulation again. World War I (abbreviated WWI; also known as the First World War, the Great War, and the War to End All In 1920, the silver standard, maintained at . 925 since 1552, was reduced to . 500. In 1937, a nickel-brass 3d coin was introduced, with the last silver 3d coins issued seven years later. In 1947, the remaining silver coins were replaced with cupro-nickel. Cupronickel or Coppernickel is an Alloy of Copper, Nickel and strengthening impurities such as Iron and Manganese. Inflation caused the farthing to cease production in 1956 and be demonetized in 1960. In the run up to decimalization, the halfpenny and half-crown were demonetized in 1969.

Decimal

£1 coin (Welsh design, 2000)
Queen Elizabeth II	Welsh dragon

The first decimal coins were introduced in 1968. For the ship see RMS Queen Elizabeth 2 Elizabeth II (Elizabeth Alexandra Mary Context States headed by Elizabeth II The standard circulating coinage of the United Kingdom is denominated in pounds sterling ( symbol "£") and since the introduction of the two pound These were cupro-nickel 5p and 10p coins which were equivalent to and circulated alongside the 1/- and 2/- coins. Cupronickel or Coppernickel is an Alloy of Copper, Nickel and strengthening impurities such as Iron and Manganese. The curved equilateral heptagonal, cupro-nickel 50p coin replaced the 10/- note in 1969. Construction A regular heptagon is not constructible with Compass and straightedge but is constructible with a marked Ruler and compass Cupronickel or Coppernickel is an Alloy of Copper, Nickel and strengthening impurities such as Iron and Manganese. The decimal coinage was completed when decimalisation came into effect in 1971 with the introduction of the bronze ½p, 1p and 2p coins and the withdrawal of the 1d and 3d coins. 6d coins circulated at a value of 2½p until 1980. In 1982, the word "new" was dropped from the coinage and a 20p coin was introduced, followed by a £1 coin in 1983. The ½p coin was last produced in 1983 and demonetized in 1984. The 1990s saw the replacement of bronze with copper-plated steel and the reduction in size of the 5p, 10p and 50p coins. Bronze is any of a broad range of Copper alloys, usually with Tin as the main additive but sometimes with other elements such as Phosphorus Steel is an Alloy consisting mostly of Iron, with a Carbon content between 0 The old 1/- coins, which had continued to circulate with a value of 5p, were demonetized in 1991 following the reduction in size of the 5p coin, and 2/- coins were similarly demonetized in 1993. The bi-metallic British two pound coin#The modern circulating coin (1997–present 2£ coin) was introduced in 1998. Bi-metallic coins are Coins consisting of more than one Metal or Alloy, generally arranged with an outer ring around a contrasting center

At present, the oldest circulating coins in the U. K. are the 1p and 2p copper coins introduced in 1971. Before decimalisation, change could contain coins aged one hundred years or more, with any of five different monarchs' heads on the obverse.

In 1992 the composition of the 1p and 2p was changed from bronze to copper clad steel. By 2007 the value of copper in the pre 1992 1p/2p coins (Bronze is 97% copper) exceeded the value to such an extent that melting down the coins by entrepreneurs was becoming worthwhile (with a premium of up to 11%, with smelting costs reducing this to around 4%) - although this is illegal. The new steel core coins can be sorted by use of a magnet and one assumes the Royal Mint will gradually withdraw the pure Bronze coins over time. In the meantime Britain must be one of the few countries in modern times where a large number of coins have an intrinsic value - similar to the "gold" guarantee of the old gold sovereigns.

In April 2008 an extensive redesign of the coinage was unveiled, to be issued in summer 2008. The new reverses of the 1p, 2p, 5p, 10p, 20p and 50p coins feature parts of the Royal Shield, and the new pound coin depicts the whole shield. The Royal Coat of Arms of the United Kingdom is the official Coat of arms of the British monarch, currently Queen Elizabeth II. The coins are of the same specifications as those with the old designs (which will continue to circulate). No hints have been given whether Britain will follow Australia and New Zealand and withdraw the 1p and 2p coins - or have a half way house which allows shop pricing to the penny (and payment by credit/debit card to the odd penny) but the final total to be rounded for cash purposes to the nearest 5p (or 10p).

Banknotes

Main article: Banknotes of the pound sterling

The first sterling notes were issued by the Bank of England shortly after its foundation in 1694. The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom Denominations were initially written on the notes at the time of issue. From 1745, the notes were printed in denominations between £20 and £1000, with any odd shillings added in hand. £10 notes were added in 1759, followed by £5 in 1793 and £1 and £2 in 1797. The lowest two denominations were withdrawn following the end of the Napoleonic wars. The Napoleonic Wars (1803-1815 involved Napoleon's French Empire and a shifting set of European allies and opposing coalitions In 1855, the notes were converted to being entirely printed, with denominations of £5, £10, £20, £50, £100, £200, £300, £500 and £1000 issued.

The Bank of Scotland began issuing notes in 1695. The Bank of Scotland plc is a commercial and Clearing bank based in Edinburgh, Scotland. Although the pound scots was still the currency of Scotland, these notes were denominated in sterling in values up to £100. The pound Scots (Pund Scots was the national unit of Currency in the Kingdom of Scotland before the country entered into political and Currency union From 1727, the Royal Bank of Scotland also issued notes. The Royal Bank of Scotland plc ( Scottish Gaelic: Banca Rìoghail na h-Alba) is one of the retail banking subsidiaries of the Royal Bank of Scotland Group Both banks issued some notes denominated in guineas as well as pounds. In the 19th century, regulations limited the smallest note issued by Scottish banks to be the £1 denomination, a note not permitted in England.

With the extension of sterling to Ireland in 1825, the Bank of Ireland began issuing sterling notes, later followed by other Irish banks. The Bank of Ireland (Banc na hÉireann, officially known as the Governor and Company of the Bank of Ireland is a commercial Bank operation in Ireland These notes included the unusual denominations of 30/- and £3. The highest denomination issued by the Irish banks was £100.

In 1826, banks at least 65 miles (105 km) from London were given permission to issue their own paper money. From 1844, new banks were excluded from issuing notes in England and Wales but not in Scotland and Ireland. Consequently, the number of private banknotes dwindled in England and Wales but proliferated in Scotland and Ireland. The last English private banknotes were issued in 1921.

In 1914, the Treasury introduced notes for 10/- and £1 to replace gold coins. HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing These circulated until 1928, when they were replaced by Bank of England notes. Irish independence reduced the number of Irish banks issuing sterling notes to five operating in Northern Ireland. Northern Ireland (Tuaisceart Éireann Ulster Scots: Norlin Airlann) is a Country within the United Kingdom, lying in the northeast of The Second World War had a drastic effect on the note production of the Bank of England. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including Fearful of mass forgery by the Nazis (see Operation Bernhard), all notes for £10 and above ceased production, leaving the bank to issue only 10/-, £1 and £5 notes. Nazism, which was a short name for National Socialism (Nationalsozialismus refers primarily to the Ideology and practices of the National Socialist German Operation Bernhard was the name of a secret German plan devised during the Second World War to destabilise the British economy by flooding the country with Scottish and Northern Irish issues were unaffected, with issues in denominations of £1, £5, £10, £20, £50 and £100.

The Bank of England reintroduced £10 notes in 1964. In 1969, the 10/-note was replaced by the 50p coin as part of the preparation for decimalization. £20 Bank of England notes were reintroduced in 1970, followed by £50 in 1982. Following the introduction of the £1 coin in 1983, Bank of England £1 notes were withdrawn in 1988. Scottish and Northern Irish banks followed, with only the Royal Bank of Scotland continuing to issue this denomination.

Legal tender and regional issues

See also: Banknotes of the pound sterling

Legal tender in the UK means (according to the Royal Mint) "that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. Sterling banknotes are the Banknotes of the United Kingdom and British Islands, denominated in pounds sterling (symbol £ Legal tender or forced tender is Payment that by Law, cannot be refused in settlement of a Debt ( Debtor cannot successfully be sued It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded. "

Throughout the U. K. , £1 and £2 coins are legal tender for any amount, with the other coins being legal tender only for limited amounts. In England and Wales, Bank of England notes are also legal tender for any amount. History The Roman occupation of Britain was the first period in which the area of present-day England and Wales was administered as a single unit (with the exception The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom In Scotland and Northern Ireland, no banknotes are currently legal tender, although Bank of England 10/- and £1 notes were legal tender, as were Scottish banknotes during World War II (Currency (Defence) Act 1939; this status was withdrawn on January 1, 1946). Scotland ( Gaelic: Alba) is a Country in northwest Europethat occupies the northern third of the island of Great Britain. Northern Ireland (Tuaisceart Éireann Ulster Scots: Norlin Airlann) is a Country within the United Kingdom, lying in the northeast of World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including New Year See also New Year The Ancient Romans began their consular year on January 1st since 153 BC Year 1946 ( MCMXLVI) was a Common year starting on Tuesday (link will display full 1946 calendar of the Gregorian calendar. However, the banks have to made deposits with the Bank of England to cover the bulk of their note issues. The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom In the Channel Islands and Isle of Man, the local variations on the banknotes are legal tender in their respective jurisdictions.

Scottish, Northern Irish, Channel Islands and Manx notes are sometimes rejected by shops when used in England. British shopkeepers can choose to reject any payment, even if it would be legal tender in that jurisdiction, because no debt exists when the offer of payment is made at the same time as the offer of goods or services. When settling a restaurant bill after consuming the meal, or other debt the laws of legal tender do apply, but usually any reasonable method of settling the debt (such as credit card or cheque) will be accepted.

Commemorative £5 and 25p ("crown") coins, rarely seen in circulation, are legal tender, as are the bullion coins issued by the Mint. The commemorative British decimal twenty-five pence (25p Coin was issued in four designs between 1972 and 1981.

Coin	Maximum usable as legal tender[17]
£5 (post-1990 crown)	unlimited
£2	unlimited
£1	unlimited
50p	£10
25p (pre-1990 crown)	£10
20p	£10
10p	£5
5p	£5
2p	20p
1p	20p

On the value of British money

In 2006 the House of Commons Library published a document^[18] which included an index of the value of the pound for each year between 1750 and 2005, where the value in 1974 was indexed at 100. The House of Commons Library is the library and information resource of the lower house of the British Parliament. (This was an update of earlier documents published in 1998 and 2003. )

Regarding the period 1750–1914 the document states: "Although there was considerable year on year fluctuation in price levels prior to 1914 (reflecting the quality of the harvest, wars, etc. ) there was not the long-term steady increase in prices associated with the period since 1945". It goes on to say that "Since 1945 prices have risen in every year with an aggregate rise of over 27 times. "

The value of the index in 1750 was 5. 1, increasing to a peak of 16. 3 in 1813 before declining very soon after the end of the Napoleonic Wars to around 10. The Napoleonic Wars (1803-1815 involved Napoleon's French Empire and a shifting set of European allies and opposing coalitions 0 and remaining in the range 8. 5–10. 0 at the end of the nineteenth century. The index was 9. 8 in 1914 and peaked at 25. 3 in 1920, before declining to 15. 8 in 1933 and 1934—prices were only about three times as high as they had been 180 years earlier.

Inflation had a dramatic effect during and after World War II—the index was 20. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including 2 in 1940, 33. 0 in 1950, 49. 1 in 1960, 73. 1 in 1970, 263. 7 in 1980, 497. 5 in 1990, 671. 8 in 2000 and 757. 3 in 2005.

Value against other currencies

The pound is freely bought and sold on the foreign exchange markets around the world, and its value relative to other currencies therefore fluctuates (rising when traders buy pounds, falling when traders sell pounds). The foreign exchange ( currency or forex or FX) market refers to the market for currencies. It has traditionally been among the highest-valued base currency units in the world. On May 31, 2008, £1 was worth US$1. Events 1279 BC - Rameses II (The Great (19th dynasty becomes pharaoh of Ancient Egypt. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 98 or €1. Please update other articles as well to avoid contradiction within Wikipedia e 27.

• Historical exchange rates (since 1990) are given in Exchange rates section of the Economy of the United Kingdom entry. The economy of the United Kingdom is the fifth largest in the world in terms of market Exchange rates and the sixth largest by Purchasing power parity The economy of the United Kingdom is the fifth largest in the world in terms of market Exchange rates and the sixth largest by Purchasing power parity
• Current wholesale exchange rates between sterling and other currencies can be viewed here.

The pound as a major international reserve currency

Sterling is used as a reserve currency around the world and is presently ranked third in amount held as reserves. A reserve currency (or anchor currency) is a Currency which is held in significant quantities by many governments and institutions as part of their Foreign The percentage which pounds make up of total reserves has increased over recent years, due in part to the stability of the British economy and government, gradual increase in value against many currencies and relatively high interest rates compared to other major currencies such as the dollar, euro and yen.

Currency composition of official foreign exchange reserves

	'95	'96	'97	'98	'99	'00	'01	'02	'03	'04	'05	'06	'07
US dollar	59. A reserve currency (or anchor currency) is a Currency which is held in significant quantities by many governments and institutions as part of their Foreign The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 0%	62. 1%	65. 2%	69. 3%	70. 9%	70. 5%	70. 7%	66. 5%	65. 8%	65. 9%	66. 4%	65. 7%	63. 3%
Euro					17. Please update other articles as well to avoid contradiction within Wikipedia e 9%	18. 8%	19. 8%	24. 2%	25. 3%	24. 9%	24. 3%	25. 2%	26. 5%
German mark	15. 8%	14. 7%	14. 5%	13. 8%
Pound sterling	2. 1%	2. 7%	2. 6%	2. 7%	2. 9%	2. 8%	2. 7%	2. 9%	2. 6%	3. 3%	3. 6%	4. 2%	4. 7%
Japanese yen	6. 8%	6. 7%	5. 8%	6. 2%	6. 4%	6. 3%	5. 2%	4. 5%	4. 1%	3. 9%	3. 7%	3. 2%	2. 9%
French franc	2. The franc (represented by the franc sign ₣ or more commonly just F) is a former Currency of France. 4%	1. 8%	1. 4%	1. 6%
Swiss franc	0. The franc ( German: Franken, French and Romansh: franc, Italian: franco; code: CHF 3%	0. 2%	0. 4%	0. 3%	0. 2%	0. 3%	0. 3%	0. 4%	0. 2%	0. 2%	0. 1%	0. 2%	0. 2%
Other	13. A list of all Currencies, current and historic The local name of the currency is used in this list with the adjectival form of the country or region 6%	11. 7%	10. 2%	6. 1%	1. 6%	1. 4%	1. 2%	1. 4%	1. 9%	1. 8%	1. 9%	1. 5%	1. 8%
	Sources: 1995-1999, 2006-2007 IMF: Currency Composition of Official Foreign Exchange ReservesPDF (80 KB) Sources: 1999-2005, ECB: The Accumulation of Foreign ReservesPDF (816 KB)           v • d • e

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For exchange rate trends since 1990, see Economy of the United Kingdom#Exchange rates. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic The European Central Bank (ECB is one of the world's most important Central banks responsible for Monetary policy covering the 15 member countries of the The economy of the United Kingdom is the fifth largest in the world in terms of market Exchange rates and the sixth largest by Purchasing power parity

See also

• Economic history of Great Britain
• Table of historical exchange rates against the US Dollar
• Wikipedia Manual of Style: Currencies, for the accepted standard on how to format amounts in pounds sterling in Wikipedia articles

References

External links

• Don's World Coin Gallery - Great Britain
• The Global History of Currencies - United Kingdom
• Global Financial Data currency histories table ( Microsoft Excel format)
• (German) Chart: British Pound in Dollar
• (German) Chart: British Pound in Euro
• A history of sterling Daily Telegraph
• Purchasing Power of British Pounds from 1264 to 2005
• Five Ways to Compute the Relative Value of a UK Pound Amount, 1830 - 2005
• The Royal Mint: New 2008 Redesign Revealed

Online currency tools

There are two tools at the MeasuringWorth website that can give an idea of the value of the pound through the ages. One tool uses the Retail Price Index covering the years 1264-2005 [1]. Another more extensive tool covering the years 1830-2005 is available using five comparative methods, Retail Price Index, GDP deflator, Average earnings, Per Capita GDP, and GDP [2]. In Economics, the GDP deflator (implicit price deflator for GDP is a measure of the change in prices of all new domestically produced final goods and services in an economy

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