Interesting Facts about British Pound

The United Kingdom is a small but powerful island country in Europe. It has a rich history, and its official money is called the British pound, symbolized as GBP. Do you know that the British pound is the oldest currency still used around the world?

Nowadays, the British pound is recognized as one of the most strongest and well-known currencies globally. Whether you're thinking about visiting or moving to the U.K., it's a good idea to get to know the country's currency.

What is the GBP?

The main currency used in the United Kingdom is the British pound, denoted by GBP and symbolized by £. It is also known as the "British pound sterling." Additionally, several places beyond the United Kingdom recognize and use the British pound as their official currency. These include Wales, England, Northern Ireland, and Scotland within the United Kingdom, as well as territories like South Georgia and the South Sandwich Islands.

The Bank of England is responsible for producing the currency used in the United Kingdom. They issue banknotes in denominations of 5, 10, 20, and 50 pounds. Additionally, there are coins in values of 1, 2, 5, 10, 20, and 50 pence. Similar to the U.S. dollar, the British currency system is based on 100 units, where one British pound is equivalent to 100 pence.

Why is it called the British Pound?

Indeed, the name of the British pound has its roots in the Roman era. It comes from the Latin word "Libra," which translates to "weight" or "balance" (scales). The complete term, "Libra Pondo," meant pound weight. Although the word "Libra" may not be explicitly used today, it lingers in the recognizable "L" symbol for the pound sterling, as well as the shorthand for the unit of mass, pound (lb). In the Roman era, there was a close connection between weight and currency, with prices often being tied to the weight of the currency, such as a pound of silver.

What are they made of?

The British pound is printed on polymer, which is a type of plastic material. This choice of material serves multiple purposes. Firstly, it enhances security features, making it more challenging to counterfeit compared to traditional paper notes. Secondly, the use of polymer fibers increases the durability of the currency, significantly extending its lifespan when compared to paper notes. This change from paper to polymer is a modern approach adopted by many countries to improve the security and longevity of their banknotes.

How old is the British Pound?

The British Pound is the oldest surviving independent currency, with a history dating back around 1200 years. Presently, it serves as the official currency not only in the United Kingdom but also in various territories and regions. These include Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha.

Interesting facts about the British Pound

1. Latin Origin

The British pound has been around for a very long time, over 1,200 years! Its roots go back to the time when the Romans were in the United Kingdom. The name "pound" originally comes from a Latin word, "libra," which means weight or balance. Back in the Roman days, the money was measured in pounds of silver. In fact, one British pound used to be worth the same as one pound of silver. That's why it's sometimes called "pound sterling" because it used to be worth one pound of silver.

2. Oldest Currency

The British pound has been around since the 700s, but the first official paper money, called a pound note, was made by the Bank of England more than 300 years ago, in 1694. At first, these notes were written by hand, but later on, they started printing them between 1696 and 1699.

The pound was historically divided into 20 shillings, and each shilling was further divided into 12 pennies. The currency underwent decimalization in 1971, with the pound divided into 100 new pence.

3. Queen's Portrait

Queen Elizabeth II was the ruler of the United Kingdom for a very long time, from 1952 until her passing in 2022. When there's a new king or queen, the Bank of England does something interesting with the coins. On the coins, Queen Elizabeth's nose points to the right. But if and when King Charles III becomes the monarch, his nose will face the opposite way, towards the left. It's a way for the coins to show the change in leadership.

4. Pence are cleverly measured by weight

Two one-pence coins weigh the same as one two-pence coin, and this clever pattern continues with other pence in the British pound. This goes back to the pound's history as a currency based on weight. It's not just a historical nod but also a smart way to make it harder for people to make fake coins.

5. Paper to Polymer

In recent years, the Bank of England transitioned from printing banknotes on paper to using polymer. Polymer banknotes are more durable and resistant to wear and tear.

6. Minting Authority

The Royal Mint, which can trace its origins back over 1,100 years, is responsible for minting coins in the United Kingdom.

7. Multiple Issuers

While the Bank of England issues banknotes for England and Wales, Scottish and Northern Irish banks also issue their own distinct banknotes.

8. Global Reserve Currency

Historically, the pound sterling was considered a global reserve currency, along with the U.S. dollar. While it's no longer as prominent as it once was, it remains an important international currency.

In the European Union (EU), many countries use a common currency called the euro, starting in 2002. However, even when the United Kingdom (U.K.) was part of the EU, it chose to stick with its own currency, the British pound.

In 2016, the people in the U.K. voted to leave the EU, a process known as Brexit. After the vote, the value of the British pound dropped to its lowest point in 31 years, and there were big disruptions in the financial systems of UK.