pound sterling (symbol: Ã, Â £ ; ISO code: GBP ), commonly known as pon and less commonly referred to as Sterling , is the official currency of the United Kingdom, Jersey, Guernsey, Isle of Man, South Georgia and the South Sandwich Islands, British Antarctic Territory, and Tristan da Cunha. It is divided into 100 pence (singular: cents , abbreviated: p ). A number of countries that do not use sterling also have a currency called pound . At various times, pound sterling is commodity money or paper money backed by silver or gold, but currently paper money, supported only by the economy in the areas where it is received. Pound sterling is the oldest currency in the world that is still in use and has been used continuously from the beginning.
Sterling is the fourth most traded currency in the foreign exchange market, after the United States dollar, euro, and Japanese yen. Together with the three currencies it forms a basket of currencies that calculates the value of the special drawing rights of the IMF, with 11.3% weighting in 2011 (USD 41.9%, Euro 37.4%, 9.4% Yen). Sterling is also the third largest reserve reserve currency in global reserves (about 4%).
The dependence of the United Kingdom of Guernsey, Jersey, and the Isle of Man produced their own local problems about sterling: "Guernsey Pound", "Jersey Pound" and Manx pound), Gibraltar (beside Gibraltar pound), Falkland Islands (along with Falkland Islands pound) , Saint Helena and Ascension Island in Saint Helena, Ascension and Tristan da Cunha (along with Saint Helena pound). The Bank of England is the central bank for pound sterling, publishing its own coins and banknotes, and arranging for the issuance of banknotes by private banks in Scotland and Northern Ireland. Banknotes issued by other jurisdictions are not regulated by the Bank of England; the local government uses the Bank of England notes as support for local publishing by allowing them to be exchanged 1: 1 with nominal value.
Video Pound sterling
Name
The full official name of
The pound sterling exchange rate against the US Dollar is referred to as "cable" in the wholesale foreign exchange market. The origins of this term are attributed to the fact that in the 1800s, the exchange rate of GBP/USD was transmitted via transatlantic cables. Forex traders GBP/USD are sometimes referred to as "cable dealers". GBP/USD is currently the only currency pair with its own name in the foreign exchange market, after IEP/USD, known as "wire" especially in the futures exchange market, is no more after the Irish Pound was replaced by the euro in 1999.
There is a convergence of opinion about the origin of the term "pound sterling", toward the derivation of the name of a small Norman silver coin, and away from its relationship with Easterlings (German merchants) or other etymologies. Therefore, the Oxford English Dictionary (and the source from it) states that the "most plausible" etymology is a derivative of Old English steorra for "stars" in addition to the minimized "-ling" suffix , which means "Little Star" and refers to the silver coins of the British Normandy people. As another established source notes, the compound expression is then derived:
The silver coins known as the "sterlings" were published in the Saxon kingdom, 240 of them printed out of a pound of silver... Therefore, big payments came to be accounted for in "pounds of sterlings," the phrase was shortened...
However, the narrowed windows perceived from the issuance of these coins, and the fact that coin designs often change in the period in question, led Philip Grierson to resist this in favor of more complex theories.
Another argument that the Hanseatic League is the origin of the origin of its definition and manufacture, and in its name is that the German name for the Baltic is "Ost See", or of the East Sea, and from this the Baltic traders are called "Osterlings", or " Easterlings ". In 1260, Henry III gave them a protective and land charter for their Contract, The Steelyard of London, which in the 1340s was also called "Easterlings Hall", or Esterlingeshalle. Since the League money is not often degraded like England, British merchants are set to be paid in "Easter" pounds, who are contracted into "sterling".
For further discussion on the etymology of "sterling", see sterling silver.
The pound currency mark is Ã, Â £ , which is usually written with single bars (as in the sterling bank notes), although the version with double bars (? ) is sometimes - sometimes also seen. This symbol comes from a medieval Latin document; Roman words libra , solidus , and denarius (Ã, Â £ sd) refers to pounds, shillings and pence in pre-decimal English (duodecimal)) the currency system and the black letter "L" stands for libra , the base unit of the Roman base.
The ISO 4217 currency code is GBP , formed from "GB", ISO 3166-1 alpha-2 code for United Kingdom, and the first letter "pound". That does not mean "Great Britain Pound" or "Great British Pound". Sometimes, the abbreviation "UKP" is used but this is not standard because the ISO 3166 country code for the UK is GB (see British Isles Terminology). Crown Dependencies use their own (non-ISO) code: GGP (Guernsey pound), JEP (Jersey pound) and IMP (Isle of Man pound). Stocks are often traded in pens, so traders can refer to pence sterling, GBX (sometimes GBp), when listing stock prices.
The general term slang for pound sterling or pound is quid , which is singular and plural except in the general phrase "Quids in!" This term probably originated from Italian immigrants from "scudo", a name for a number of coins used in Italy until the 19th century; or from the Latin 'quid' through the generic quid pro quo, literally, "for what," or, figuratively, "equivalent exchange or substitution".
Maps Pound sterling
Subdivisions and other units
Decimal coins
Since the decimation in 1971 (see Decimal Day), the pound has been divided into 100 pence (until 1981 described on the coin as "new pence"). The symbol for sen is "p"; then an amount like 50p (Ã, Â £ 0.50) is correctly pronounced "fifty pence" more often, often, pronounced "fifty piss"/f? ti: pi:/. It also helps to differentiate between new and old pence amounts during changeover to the decimal system. A decade and a half decades were issued until 1984, but was removed because it had a higher cost to produce than its face value.
Pre-decimal
Before decimation, the pound is divided into 20 shillings and each shilling becomes 12 pence, making 240 pence to the pound. The symbol for shilling is " s ." - not from the first letter of the word, but from Latin solidus . The symbol for the sen is " d .", From the French denier , from the Latin denarius (solid and denarius is Roman coin). A number of shillings and pence, such as 3 shillings and 6 pence, are written as "3/6" or "3 s . 6 d ." and is pronounced as "three and six" or "three and six pence" except for "1/1," "2/1" etc., which are pronounced as "one and one cent", "two and one cent", etc. ). 5 shilling, for example, is written as "5 s ." or, more generally, "5/-". Various denominations of coins have, and in some cases continue to have, special names - such as crown, farthing, sovereign and guinea. See Pound Sterling Coin and List of UK coins and notes for details.
In the 1950s, the coins of King George III, George IV, and William IV disappeared from circulation, but a coin (at least a penny) carrying the head of the king or queen of England from Queen Victoria and beyond can be found in the circulation. Silver coins were replaced by them in cupro-nickel in 1947, and by 1960 silver coins were rarely seen. Silver/cupro-nickel shillings (from each period after 1816) and florins (2 shillings) remained as legitimate payment instruments after decimation (5p and 10p respectively) until 1993, but now officially demonized.
History
Pound sterling is the oldest currency in the world that is still in use. Anglo-Saxon
The pound is an account unit in Anglo-Saxon England, equivalent to 240 cents of silver and equivalent to one pound of silver weight. It evolved into modern British currency, pound sterling.
Accounting system 4 farthings = 1 cent, 12 pence = 1 shill, 20 shillings = 1 pound adopted from that introduced by Charlemagne to the Frankish Empire (see French livre).
The origin of sterling lies in the reign of King Offa of Mercia (757-796), who introduced the silver coin. It copies the denarius from the new currency system of the Frank Charlemagne Empire. As in the Carolingian system, 240 cents weighs 1 pound (corresponding to Charlemagne libra), with shillings associated with Charlemagne's and equal to 12d. At the time of penny introduction, the weight of 22.5 troy grains of fine silver (32 grains of tower, about 1.5 g), indicates that the Mercian pound weighed 5,400 troy granules (Mercian pound became the base of the pound tower, which also weighed 5,400 troy grains, equivalent to 7,680 tower grains, about 350g). Medieval
Early money was beaten from fine silver (as pure as available). However, in 1158, the new currency was introduced by King Henry II (known as Tealby penny ) who was beaten from 0.925 (92.5%) silver. It became standard until the 20th century and is today known as sterling silver, named after its relation to the currency. Sterling silver is harder than the traditional 0.999 (99.9%) silver silver traditionally used, and silver sterling coins are not reduced as fast as silver coins. The British currency was almost exclusively silver until 1344, when the golden nobility was successfully introduced into the circulation. However, silver remains the legal basis for sterling until 1816.
During Henry III's time, pound sterling equaled the pound (weight) of the tower. In the 28th year of Edward I (about 1300), pounds (money), or pound sterling, first begins to differ from (weighs less than) the pound tower, from which it originates, because by year indenture the weight pounds contain 20s. 3d. in fairytale pounds. In the 27th year of Edward III (about 1354), pound sterling is now only 80% of the pound's weight, or 9 oz 12 dwt (or 9.6 oz) tower. By Act 13 Henry IV (about 1412), the standard silver weight pound contains 30 shillings in a fairy tale, or one half pound sterling; thus pound sterling reduced to two thirds of the pound weight, or 8 oz tower. The pound sterling was adjusted several times afterwards.
During the reign of Henry IV (1399-1413), penny reduced its weight to 15 silver (0.97 g) silver, with further reduction to 12 grains (0.78 g) in 1464.
Tudor
During the reign of Henry VIII and Edward VI, the silver currency drastically declined, although the pound was redefined to troy pounds of 5,760 grains (373 g) in 1526. In 1544, a silver coin was issued containing only one-third silver and two-thirds of copper 0.333 silver, or 33.3% pure. The result is a copper coin in appearance but relatively pale. In 1552, a new silver currency was introduced, struck with sterling silver. However, the weight of the penny is reduced to 8 grains (0.52 g), so 1 troy pound sterling silver produces 60 shillings of coins. This silver standard is known as the "60-shilling standard" and lasts until 1601 when "62-shilling standard" is introduced, reducing the penny weight to 23 /sub > 31
item (0.50 g).
Medieval
During this period, the size and value of the gold currency fluctuated greatly.
Unauthorized gold standard
In 1663, new gold coins were introduced based on a 22-karat fine guinea. Fixed the weight at 44 / 2 to troy pound from 1670, the value of this coin varied up to 1717, when repaired at 21 shillings (21/-, 1.05 lbs). However, despite Sir Isaac Newton's efforts, Master of the Mint, to reduce the value of guinea, this valuation is overvalued against gold compared to valuations in other European countries. In line with Gresham's Law, British merchants send silver abroad in provisional payments for exports paid with gold. As a result of the outflow of silver and gold in the UK, effectively on the gold standard. Trade with China exacerbated this outflow, as China refused to accept anything but silver in payments for exports. From the mid-17th century, about 28,000 metric tons (27,600 tons of imperial) silver was received by China, mainly from European countries, in exchange for Chinese tea and other items. To trade with China, Britain must first trade with other European countries to receive silver, which causes the East India Company to rectify this trade imbalance through indirect sales of opium to China.
Domestic offtake further reduces the silver in circulation, as increased profits from the merchant class lead to increased demand for tablewares. Silverworkers always regard the currency as a source of raw material, already verified for smoothness by the government. As a result, the sterling coins are melted and formed into sterling silver with an acceleration rate. A 1697 Act of Parliament attempts to stem this wave by increasing the acceptable minimum acceptability in wrought from 92.5% sterling into the new Britannia silver standard 95.83%. Pure silver made from melted coins will be found when silversmiths take their belongings to the Testing Office, thereby minimizing coin smelting.
Establishment of a modern currency
The Bank of England was founded in 1694, followed by Bank of Scotland a year later. Both began issuing paper money.
United Kingdom (1707) and United Kingdom (1801)
Pound Scots once had much of the same value as pounds sterling, but he experienced a much higher devaluation until in the 17th century was pegged to sterling with a value of 12 pounds = 1 pound sterling.
In 1707, the British Empire and the Kingdom of Scotland merged to form the Kingdom of Great Britain. In accordance with the Union Agreement, the United Kingdom currency is sterling, with the pound immediately replaced by sterling at a pegged value.
In 1801, the United Kingdom and the Irish Empire were united to form the Kingdom of Great Britain and Ireland. However, the Irish pound continued to exist and was not replaced by sterling until January 1826. The conversion rate has long been thirteen pounds of Ireland being twelve pounds sterling.
Use in Empire
Sterling circulates in most of the United Kingdom. In some parts, it is shared with the local currency. For example, the gold ruler is a valid means of payment in Canada despite using Canadian dollars. Some colonies and dominions adopt pounds as their own currency. These include Australia, Barbados, British West Africa, Cyprus, Fiji, British India, Ireland Free State, Jamaica, New Zealand, South Africa and Southern Rhodesia. Some parity is maintained by sterling during its existence (eg South African pound), while others deviate from parity after the end of the gold standard (eg Australian pound). Currency and other related to sterling is sterling area.
Original British colonists in North American mainland are not party to the sterling area because the silver shortage mentioned above in the UK coincides with the colonies' formation years. As a result of fair trade (and unjust piracy), Spain's insanely dollar became the most common coin in the British colony.
Gold Standard
During the war of American independence and Napoleonic wars, the Bank of England record was a legitimate means of payment, and their value was floating relative to gold. The bank also issued a silver token to reduce the shortage of silver coins. In 1816, the gold standard was officially adopted, with the silver standard reduced to 66 shillings (66/-, Ã, Â £ 3 6s), giving the silver coin a "token" problem (ie not containing their value in precious metals). In 1817, sovereignty was introduced, worth 20 shillings. Twisted in 22 carat gold, it contains 113 gold grains (7.3 g) and replaces the guinea as the standard gold coin of England without changing the gold standard. In 1825, the Irish pound, which had been pegged to sterling since 1801 at the rate of 13 Irish pounds = 12 pounds sterling, was replaced, at the same level, with sterling.
In the 19th century, pound sterling was widely accepted outside England. The American Nellie Bly carries the Bank of England record on 1889-1890 travels around the world in 72 days. During the late 19th and early 20th centuries, many other countries adopted the gold standard. As a result, the conversion rates between different currencies can be determined only from the gold standard of each. Pound sterling equal to 4.85 US dollars, 5.25 Canadian dollars, 12.10 Dutch guilders, 26.28 French francs (or equivalent currency in the Latin Monetary Union), 20.43 German or 24.02 Austrian krone- Hungary. After the International Monetary Conference of 1867 in Paris, the possibility of England joining the Latin Monetary Association was discussed, and the Royal Commission on International Infiltration examined the matter, resulting in the decision not to join the monetary union.
The gold standard was suspended in the outbreak of war in 1914, with the Bank of England and Treasury being the legal means of payment. Before World War I, Britain had one of the world's strongest economies, holding 40% of the world's overseas investment. But after the end of the war, the country is indebted: Britain owes  £ 850 million (£ 37.3 billion in 2015) with interest losing the state about 40% of all government spending. To try to continue the stability, the gold standard version was reintroduced in 1925, where the currency was set to gold on the pre-war peg, but people could only exchange currency for gold bars, not for coins. It was abandoned on September 21, 1931, during the Great Depression, and sterling suffered an initial devaluation of about 25%.
Bretton Woods
In 1940, an agreement with the US pegged the pound to the US dollar at the rate of Ã, Â £ 1 = $ 4.03. (Just the year before, it was $ 4.86.) This level was maintained through the Second World War and became part of the Bretton Woods system that governs post-war exchange rates. Under continued economic pressure, and despite months of arguing that it would do so, on 19 September 1949 the government devalued the pound by 30.5% to $ 2.80. This move prompted some other currencies to be devalued against the dollar.
Bernhard's operation was the code of the Nazi secret plan designed during the Second World War by RSHA and SS to destabilize the British economy through economic warfare by flooding the global economy and the United Kingdom with the forged Bank of England Ã, Â £ 5, Ã, Â £ 10 , Ã, Â £ 20, and Ã, Â £ 50 notes.
In 1961, 1964, and 1966, the pound was under renewed pressure, as speculators sold the pound for the dollar. In the summer of 1966, with the value of the pound falling on the currency market, exchange controls were tightened by the Wilson government. Amongst these measures, tourists are prohibited from taking more than Ã, Â £ 50 overseas in travelers checks and remittances, plus Ã, Â £ 15 cash; this restriction was not revoked until 1979. The pound was devalued by 14.3% to $ 2.40 on November 18, 1967.
Decimation
Until decimation, the numbers are expressed in pounds, shillings, and pence, with notes widely understood. The same amount is denoted by 32s 6d, 32/6, Ã, Â £ 1 12s 6d, Ã, Â £ 1/12/6. It is customary to set some prices (eg professional fees and auction price for artwork) in the guineas (one guinea is 21 shillings) even though guinea coins are no longer in use.
The official parliament proposal for decimals sterling was first made in 1824 when Sir John Wrottesley, a member of parliament for Staffordshire, asked at the British House of Commons whether consideration has been given for currency decimation. Wrottesley raised this issue in the House of Commons again in 1833, and it was again raised by John Bowring, MP for Kilmarnock Burghs, in 1847 whose efforts led to the introduction in 1848 of what was actually the first decimal coin in England. , florin, worth one-tenth of a pound sterling. However, full decimation is rejected, although the florin coin, redefined as ten new pence , survived the transfer to the full decimal system in 1971, with surviving examples in the UK currency until 1993.
John Benjamin Smith, MP for Stirling Burghs, raised the issue of full decimation again in Parliament in 1853, which resulted in Chancellor of the Exchequer, William Gladstone, announcing shortly thereafter that the "big question of decimal coin" was "now under serious consideration". A complete proposal for sterling decimation was subsequently filed in the House of Commons in June 1855, by William Brown, MP for Lancashire Southern, with the suggestion that the pound sterling is divided into a thousand parts, each called a "mile", or as an alternative, because the pound it is then equivalent to 960 farthings that can easily be rounded up to a thousand feroes in the new system. This did not result in the conversion of pound sterling into the decimal system, but it was agreed to establish a Royal Commission to look into the matter. However, largely due to the hostilities against the decimation of two designated commissioners, Lord Overstone (banker) and John Hubbard (Governor of the Bank of England), the decimation in Britain was effectively canceled for over a hundred years.
However, pound sterling decompressed in various British colonial areas before the British Empire (and in some cases in line with William Brown's proposal that the pound is divided into 1,000 parts, called mils). These include Hong Kong from 1863 to 1866; Cyprus from 1955 to 1960 (and continued on the island as a division of the Cypriot pound until 1983); and the Palestinian Mandate from 1926 to 1948.
Toward the end of the Second World War, efforts to reduce pounds sterling in the UK were made. Then, in 1966, the British government decided to include in the Queen's Speech a plan to turn the pound into a decimal currency. As a result, on February 15, 1971, the British reduced its pound sterling, replacing shillings and pennies with a single division, a new penny. For example, the price tag Ã, Â £ 1 12s 6d becomes Ã, Â £ 1,62 1 / 2 . The word "new" was removed from coins that were printed after 1981. ​​â € <â €
With the collapse of the Bretton Woods system, the pound drifted from August 1971 onwards. At first it was slightly appreciated, rising to almost $ 2.65 in March 1972 from $ 2.42, the upper limit of the fixed band. The sterling area effectively ends today, when most of its members also choose to fly free against the pound and the dollar.
1976 sterling crisis
James Callaghan became Prime Minister in 1976. He was soon told the economy was facing a major problem, according to documents released in 2006 by the National Archives. The effects of the 1973 oil crisis were still felt, with inflation rising to over 27% in 1975. Financial markets began to believe that the pound was overvalued, and in April of that year The Wall Street Journal suggested investment sales sterling in the face of high taxes, in a story that ends with "goodbye, Great Britain." Glad to know you. " At that time the British government was running a budget deficit, and the Labor strategy emphasized high public spending. Callaghan was told there were three possible outcomes: free fall in sterling, an internationally unacceptable siege economy, or an agreement with key allies to prop up the pound while painful economic reforms were put in place. The US government is worried that the crisis could endanger NATO and the European Economic Community (EEC), and in light of this, the US Treasury is determined to force domestic policy changes. In November 1976, the International Monetary Fund (IMF) announced requirements for loans, including cuts in public spending.
1979-89
The Conservative Party was elected to office in 1979, on a fiscal austerity program. Initially the pound rocketed, moving above US $ 2.40, as interest rates rose in response to a monetarist policy targeting the money supply. The high exchange rate was widely blamed for the deep recession in 1981. Sterling fell sharply after 1980; at its lowest point, the pound reached just $ 1.03 in March 1985, before rising to $ 1.70 in December 1989.
Following Mark Deutsche
In 1988, Chancellor of Finance Minister Margaret Thatcher, Nigel Lawson, ruled that the pound had to "haunt" Deutsche Mark West Germany, with undesirable results from the rapid inflationary rise as the economy exploded due to low interest rates. (For ideological reasons, the Conservative Government refuses to use alternative mechanisms to control credit bursts.For this reason, former Prime Minister Edward Heath calls Lawson "one golfer").
After Germany reunited in 1990, the reverse is true, due to the high borrowing costs to fund the reconstruction of the East, a necessity exacerbated by the political choice to make Ostmark equivalent to Deutsche Mark (DM), meaning levels in other countries shadowing DM, , far too high compared to domestic circumstances, leading to decline and housing recession.
Following the European Currency Unit
On October 8, 1990, the Conservative government (Thatcher Thatcher Ministry) decided to join the European Exchange Rate Mechanism (ERM), with the pound set at DM2.95. However, the state was forced to withdraw from the system on "Black Wednesday" (16 September 1992) because the UK's economic performance made the exchange rate unsustainable.
'Black Wednesday' saw interest rates jump from 10% to 15% in a failed effort to stop the pound falling below the ERM limit. The exchange rate fell to DM2.20. Those who argue for a lower exchange rate of GBP/DM are justified because cheaper pounds boost exports and contribute to the economic prosperity of the 1990s.
Following the inflation target
In 1997, the newly elected Labor government handed over the daily interest rate control to the Bank of England (a policy originally recommended by the Liberal Democrats). The Bank is currently responsible for setting its benchmark interest rate so as to keep inflation (as measured by the Consumer Price Index (CPI)) very close to 2% per annum. If CPI inflation is more than one percentage point above or below target, the governor of the Bank of England is required to write an open letter to the Chancellor of the Minister of Finance explaining the reasons for this and the steps to be taken to bring this up. the size of inflation returns in line with the 2% target. On April 17, 2007, annual CPI inflation was reported at 3.1% (retail price index inflation was 4.8%). Thus, and for the first time, the Governor should write openly to the government explaining why inflation is more than one percent higher than the target.
Euro
As a member of the European Union, the UK can adopt the euro as its currency. However, the subject was always politically controversial, and the British negotiated a rejection of the matter.
In 2007, Gordon Brown, then Minister of Finance, ruled out membership for the foreseeable future, saying that the decision not to join was a right for Britain and Europe.
On January 1, 2008, with the Republic of Cyprus transferring its currency from the Cypriot pound to the euro, British sovereign bases in Cyprus (Akrotiri and Dhekelia) followed him to make the Sovereign Base Territory the only region under British sovereignty to formally use the euro.
The 2016 referendum which started the process of UK withdrawal from the EU made the adoption of the euro almost impossible.
The government of former Prime Minister Tony Blair has promised to hold a public referendum to decide on membership should "five economic tests" be met, to increase the likelihood that the adoption of the euro will be of national interest. In addition to these internal (national) criteria, the UK must meet the criteria of EU economic convergence (Maastricht criterion) before being allowed to adopt the euro. The coalition government of the Conservative and Liberal Democrats (2010-2015) ruled out joining the euro for the term of the parliament. Currently, Britain's annual government deficit, as a percentage of GDP, is above a set threshold.
The idea of ​​replacing the pound with the euro has always been controversial with the British public, partly because the identity of the pound as a symbol of British sovereignty and therefore, according to many critics, has led to suboptimal rates, harming the UK economy.. In December 2008, BBC poll results from 1,000 people stated that 71% would vote not for the euro, 23% would vote yes, while 6% said they were unsure. The pound did not join the Second European Exchange Rate Mechanism (ERM II) after the euro was made. Denmark and England chose not to enter the euro. Theoretically, every other EU country should eventually register.
The Scottish Conservative Party claims that there is a problem for Scotland because the adoption of the euro will mean the end of a typical national banknote, as euro banknotes do not have a national design. Prior to the 'No' vote in a Scottish independence referendum in 2014, the Scottish National Party insisted that the euro would not be an independent Scottish national currency.
Latest exchange rate
Pounds and the euro fluctuate in value against each other, although there may be a correlation between movements in exchange rates with other currencies such as the US dollar. Inflation worries in Britain prompted the Bank of England to raise interest rates by the end of 2006 and 2007. This caused the pound to strengthen against other major currencies, and with the US dollar depreciating at the same time, the pound hit a 15-year high. against the US dollar on April 18, 2007, reaching US $ 2 a day earlier, for the first time since 1992. Pound and many other currencies continued to strengthen against the dollar; sterling hit a 26-year high of US $ 2.1161 on Nov. 7, 2007 as the dollar fell across the globe. From mid 2003 to mid 2007, the pound/euro rate remained the bound range (in Ã, Â ± 5%) of EUR1.45.
Following the global financial crisis in late 2008, the pound depreciated sharply, reaching Ã, Â £ 1 per $ 1.38 (US) on Jan. 23, 2009 and falling below EUR1.25 against the euro in April 2008. Further declines occurred for the remainder of the year 2008, most dramatically on December 29 when the euro exchange rate hit an all-time low of EUR1.0219, while the US dollar rate depreciated. The pound appreciated in early 2009 peaking against the euro in mid-July from EUR1.17. The next months the pound remains broadly stable against the euro, with the current pound (May 27, 2011) values ​​at EUR1.15 and US $ 1.65.
On March 5, 2009, the Bank of England announced it would pump Ã, Â £ 75 billion of new capital into the UK economy, through a process known as quantitative easing. This is the first time in British history that this action has been used, although Bank Governor Mervyn King stated that it was not an experiment.
This process sees the Bank of England creating new money for itself, which is then used to buy assets such as government bonds, secure commercial paper, or corporate bonds. The initial amount stated to be made through this method is Ã,  £ 75 billion, although Finance Minister Alistair Darling has granted a permit up to Ã, £ 150 billion to be made if needed. It is expected that the process will occur for three months with results only possible in the long run. As of November 5, 2009, approximately £ 175 billion has been injected using quantitative easing and the effectiveness of the process remains less successful in the long term. In July 2012, the recent increase in financial asset purchases meant QE had peaked at  £ 375 billion, then holding British Government bonds solely, representing a third of Britain's national debt.
The results of the 2016 UK referendum on EU membership led to a large drop in the pound against other world currencies as the future of international trade relations and domestic political leadership became unclear. The result of the referendum weakened sterling against the euro overnight by 5%. The night before the ballot Ã, Â £ 1 is traded for EUR1.30; on the day after the referendum, when the result is clear, Ã, Â £ 1 is trading at EUR1.23. In October 2016, the exchange rate was EUR1.12 to the pound, falling 14% since the referendum. At the end of August 2017, the pound fell lower at EUR1.08. Against the US dollar, meanwhile, the pound fell from $ 1,466 to $ 1.3694 when the first referendum result was revealed, and dropped to $ 1.2232 in October 2016, falling 16%.
Annual inflation rate
The Bank of England has declared (2009) that a decision has been taken to prevent the inflation rate falling below the 2% target. Mervyn King, Governor of the Bank of England, has also suggested no other monetary options are left as interest rates have been cut to the lowest level ever (0.5%) and it is unlikely that they will be cut further.
The annual rate of inflation rose in the following years, reaching 5.2% (based on Consumer Price Index) in September 2011, then declining to about 2.5% the following year.
Coins
Pre-decimal coins
Penny silver (plural: pence stands for d ) is the principal and often the only coin in circulation from the 8th century to the 13th century. Although some shards of coins are struck (see darts and half pennies), it's more common to find the dime cut into two parts and quarters to give smaller changes. Gold coins are very little hit, with penny gold (worth 20 silver pence) a rare example. However, in 1279, groat , worth 4d, was introduced, with the next half seizure in 1344. 1344 also saw the formation of gold coins by introduction (after florin gold failing) from noble worth six shillings and eight pence (6/8) (ie 3 nobles to the pound), along with half and noble quarter. The Reformation in 1464 saw a reduction in the value of the currency in silver and gold, with the nobility renamed ryal and worth 10/- (ie 2 pounds) and the angel i> introduced in value old nobleman from 6/8.
The government of Henry VII saw the introduction of two important coins: shilling (abbr: s ; known as testoon ) in 1487 and pound (known as sovereign , in 1426, some gold coin denominations were added, including the crown > and half-crown worth five shillings ( 5/- ), and two shillings and six pence ( 2/6 , two and six ) respectively. The government of Henry VIII (1509-1547) saw a high level of destruction that continued until the reign of Edward VI (1547-1553). This destruction was terminated in 1552, and new silver currencies were introduced, including coins for 1d, 2d, 3d, 4d and 6d, 1/-, 2/6 and 5/-. During the reign of Elizabeth I (1558-1603), silver 3 / 4 d and 1 < soup> 1 / 2 d coins added, but this denomination did not last. Gold coins include half crown, crown, angel, half sovereign and sovereign. The Elizabethan government also saw the introduction of horse-drawn screw screws to produce the first "milled" coins.
Following the succession of Scottish King James II to the British throne, new gold coins were introduced, including spur ryal (15/-), united (20/-) and rose ryal (30/-). The laurel , worth 20/-, followed in 1619. The first basic metal coins were also introduced: tin and copper farthest. The halfpenny copper coins followed during the reign of Charles I. During the British Civil War, a number of siege coins were produced, often in unusual denominations.
After the restoration of the monarchy in 1660, the currency was reformed, with the end of coin production hammered in 1662. The guineese was introduced in 1663, soon followed by the 1 /sub > 2 , 2 and 5 experimental coins. The silver currency consists of denominations of 1d, 2d, 3d, 4d and 6d, 1/-, 2/6 and 5/-. Due to the widespread silver exports of the 18th century, the production of silver coins gradually ceased, with half the crown and crown not issued after the 1750s, 6d and 1/- halting production in the 1780s. In response, the copper coins of 1d and 2d and gold 1 / 3 guinea (7/-) were introduced in 1797. Penny copper is the only this coin that lasts longer.
To reduce the shortage of silver coins, between 1797 and 1804, the Bank of England calculated Spanish dollars (8 reales) and other Spanish and Spanish colonial coins for circulation. A small counterstamp of the King's head was used. Until 1800, it was circulated at the 4/9 level for 8 reales. After 1800, a rate of 5/- for 8 real use. The bank then issued a silver token of 5/- (hit on the Spanish dollar) in 1804, followed by tokens for 1/6 and 3/- between 1811 and 1816.
In 1816, the new silver currency was introduced in denominations 6d, 1/-, 2/6 (half-crown) and 5/- (crown). The crown was only issued intermittently until 1900. This was followed by a new gold coin in 1817 consisting of 10/- and Ã, Â £ 1 coins, known as sovereign and sovereign half. The 4d silver coins were reintroduced in 1836, followed by 3d in 1838, with 4d coins issued only for colonial use after 1855. In 1848, 2/- florin was introduced, followed by short - double florin living in 1887. In 1860, copper was replaced by bronze in farthing (quarter penny, 1 / 4 d), half penny and penny.
During the First World War, sovereign and half-sovereign production was suspended, and although the gold standard was later restored, the coins saw little circulation thereafter. In 1920, the silver standard, maintained at 0.925 since 1552, was reduced to 0,500. In 1937, 3d nickel-brass coins were introduced; the last 3d silver coins were issued seven years later. In 1947, the remaining silver coins were replaced with cupro-nickel, with the exception of Maundy coins which were then returned to, 925. Inflation caused the farthing to cease production in 1956 and was demetaged in 1960. In the decimalization period, halfpenny and half-crown slaughtered in 1969.
Decimal coins
Timeline of UK currency:
- 1968: The first decimal coin is introduced. This is a 5p and 10p cupro-nickel coin which is equivalent to, and circulated together, one shilling coin and two coins of shilling or florin respectively. 1969: 50p hexp-nickel curved coin 50p replaces note 10/-.
- 1971: Decimal coins completed when decimation took effect in 1971 with the introduction of bronze 1 / 2 p, 1p and 2p coins and withdrawals 1d and 3d coins.
- 1980: Withdrawal of 6d coins, which have been circulated at 2 1 / 2 p.
- 1982: The word "new" is removed from the currency and 20p coins are introduced.
- 1983: Coins worth  £ 1 are introduced.
- 1983: The last 1 / 2 p is generated.
- 1984: The 1 / 2 p coins are demonized.
- 1990: The crown, worth 25p, is redeemed for future issues as a commemorative coin of Ã, Â £ 5.
- 1990s: 5p, 10p, and 50p coins become smaller.
- 1991: The pre-decimal coin 1/-, which continues to circulate with a value of 5 p, was demonized in 1991 after 5p coins became smaller. At the same time, the first 5p larger fractional coins are demotonized.
- 1992: Bronze replaced with copper-coated steel.
- 1993: Pre-decimal 2/- coins, or florin , the inheritance of the 1848 decimalization attempt has been demonetized. At the same time, the larger first decimal 10 decimal coin has been dememonized.
- 1998: Bi-metal coin  £ 2 is introduced.
- 2007: Currently the copper value of the pre-1992 1p and 2p coins (which is 97% copper) exceeds the nominal value of the coin in such a way that melting the coin by the entrepreneur becomes valuable (at a premium of up to 11%, with the cost of this smelting reducing to about 4%) - although this is illegal, and the copper market value then dropped dramatically from the previous peak.
- In April 2008, an extensive redesign of the currency was launched. The new design is gradually released into circulation, beginning in mid-2008. The new reversal of the 1p, 2p, 5p, 10p, 20p and 50p pieces features part of the Royal Shield, and the new pound coins (to be withdrawn in 2017) describe the entire shield. Coins have the same size, shape, and weight as coins with old designs, which will continue to circulate.
- 2012: 5p and 10p coins are converted from cupro-nickel to nickel-plated steel.
- 2017: New and safer coins worth  £ 1 are introduced to reduce counterfeiting. The old  £ 1 coins will no longer be valid tender on October 15, 2017.
Currently, the oldest outstanding coin in the UK is the 1p and 2p copper coins that were introduced in 1971. No other coins from before 1982 were outstanding. Prior to the demotetization of the larger 10p in 1993, the oldest coin in circulation usually originated from 1947: although the older coins (shilling, florin, sixpence until 1980) were still valid payments, inflation meant that their silver content was worth more of their face value, which means that they tend to be removed from circulation. Before the decimation in 1971, a handful of changes may contain 100-year-old coins or more, holding one of the five heads of kings, especially in copper coins.
Banknote
The first sterling record was issued by the Bank of England not long after it was founded in 1694. The denominations were originally hand-written on a note at the time of publication. From 1745, the records were printed in denominations between Ã, Â £ 20 and Ã, Â £ 1000, with odd shillings added by hand. Ã, Â £ 10 notes were added in 1759, followed by Ã, Â £ 5 in 1793 and Ã, Â £ 1 and Ã, Â £ 2 in 1797. The two lowest denominations were withdrawn after the end of the Napoleonic wars. In 1855, the record was converted to full-print, with denominations of Ã, Â £ 5, Ã, Â £ 10, Ã, Â £ 20, Ã, Â £ 50, Ã, Â £ 100, Ã, Â £ 200, Ã, £ 300, Ã, Â £ 500 and Ã, Â £ 1000 is rumored.
The Bank of Scotland began issuing records in 1695. Although the Scottish pound was still the Scottish currency, the record was denominated in sterling to Ã, £ 100. From 1727, Royal Bank of Scotland also issued a note. Both banks issue several notes in guinea and pound denominations. In the 19th century, regulations restricted the smallest notes issued by Scottish banks into denominations of Ã, Â £ 1, a note not allowed in Britain.
With a sterling extension to Ireland in 1825, the Irish Bank began issuing sterling notes, then followed by other Irish banks. These records include an unusual denomination of 30/- and Ã, Â £ 3. The highest denomination issued by Irish banks is Ã, Â £ 100.
In 1826, banks at least 65 miles (105 km) from London were given permission to issue their own banknotes. From 1844, new banks were issued from publishing records in England and Wales but not in Scotland and Ireland. As a result, the amount of personal banknotes was reduced in England and Wales but mushroomed in Scotland and Ireland. The last UK private banknote was issued in 1921.
In 1914, the Treasury introduced records for 10/- and Ã, Â £ 1 to replace gold coins. It was circulated until 1928, when they were replaced by Bank of England records. Irish independence reduced the number of Irish banks issuing five sterling notes operating in Northern Ireland. The Second World War had a drastic effect on the production of Bank of England records. Fear of mass forgery by the Nazis (see Operation Bernhard), all records for Ã, Â £ 10 and above stop production, leaving the bank to issue only 10/-, Ã, Â £ 1 and Ã, Â £ 5 notes. Scotland and Northern Ireland problems are unaffected, with problems in denominations of 1, £ 5, £ 10, £ 20, £ 50, and £ 100.
The Bank of England reintroduced a £ 10 note in 1964. In 1969, 10/- the record was replaced by a 50p coin to prepare for the decimation. à £ 20 The Bank of England was re-introduced in 1970, followed by à £ 50 in 1981. A coin à £, £ 1 was introduced in 1983, and the Bank of England à £  notes were drawn to in 1988. Northern Irish and Irish banks followed, with only the Royal Bank of Scotland continuing to issue this denomination.
English notes include elevated prints (eg "Bank of England"); watermark; braided metallic yarn; hologram; and fluorescent ink is only visible under UV light. Three printing techniques are involved: offset lito, intaglio and letterpress; and the record included a total of 85 special inks.
The Bank of England produces records named "giants" and "titan". The giant is a million pounds, and the titan is a hundred million pounds, which is about 40. Giants and titans are only used in the banking system.
Polymer banknote
The £ 5 polymer paper, issued by Northern Bank (now Danske Bank) in 2000, is the only record of polymers in circulation until 2016, although Danske Bank also produces papers worth £ 10, £ 20 and £ 50. The Bank of England introduced the £ 5 pound note bank in September 2016, and the  £ 5 notes paper was withdrawn on 5 May 2017. This date was taken because of its short format, 5/5. A polymeric bill of 10 pounds was introduced on September 14, 2017, and the paper was withdrawn on March 1, 2018. A 20-dollar bill will be introduced in 2020.
Monetary policy
As the UK central bank that has been delegated authority by the government, the Bank of England sets a monetary policy for the British pound by controlling the amount of money in circulation. It has a monopoly over the issuance of banknotes in England and Wales, and regulates the amount of banknotes issued by seven official banks in Scotland and Northern Ireland. HM Treasury has the reserve power to give orders to the committee "if they are required for public benefit and with extreme economic circumstances" but the order must be endorsed by Parliament within 28 days.
Unlike banknotes that have separate issuers in Scotland and Northern Ireland, all British coins are issued by Royal Mint, which is an independent company (wholly owned by the Treasury) which also scores coins for other countries.
In Britain, Crown Dependencies, Manx pounds, Jersey pounds, and Guernsey pounds are not regulated by the Bank of England and are published independently. However, they are maintained at a fixed exchange rate by their respective governments, and the Bank of England record has been used as a legal means of payment on the islands, forming a de facto one-way currency unity. This currency does not have an ISO 4217 code so "GBP" is usually used to represent everything; informal code is used where the difference is important.
The British Foreign Territory is responsible for the monetary policy of their own currency (where they exist), and has their own ISO 4217 code. The Falkland Islands pound, Gibraltar pound, and Saint Helena pound are set at a fixed 1: 1 exchange rate with British pounds by the local government.
Legal and national issues
The legal tender in the UK is defined in such a way that "the debtor can not be prosecuted for not paying if he/she pays the court in a legitimate manner." The parties may settle the debt in another way with mutual consent. Actually the debtor needs to offer the right amount because there is no obligation for the other party to give change.
Across the UK, Ã, Â £ 1 and Ã, Â £ 2 coins are the legal means of payment for any amount, with other coins being the only legal means of payment for a limited amount. Note The Bank of England is a valid means of payment for any amount in England and Wales, but not in Scotland or Northern Ireland. (Bank of England 10/- and Ã, Â £ 1 notes are valid payment instruments, as are the Scottish banknotes, during World War II under the 1939 Currency Act (Defense), repealed on 1 January 1946.) Channel Islands and the Isle of Man banknotes are valid payment instruments only in their respective jurisdictions.
Bank of England, Scotland, Northern Ireland, Channel Islands, Isle of Man, Gibraltar and Falkland banknotes can be offered anywhere in the UK, although there is no obligation to accept them as a means of payment, and receipts vary. For example, merchants in England generally accept Northern Ireland and Ireland bills, but some who are not familiar with them may reject it. However, Ireland and Northern Ireland bills are both likely to be accepted in Scotland and Northern Ireland, respectively. UK traders generally do not accept Jersey, Guernsey, Isle of Man, Gibraltar and Falkland records, but the Isle of Man records are generally accepted in Scotland and Northern Ireland. Bank of England records are generally accepted in the Falklands and Gibraltar, but for example the Scottish and Northern Ireland records are not. Since all bills are in pound sterling, the bank will exchange them with locally issued charges at face value, although some in the UK have difficulty exchanging Falkland Islands pounds.
The commemorative coins  £ 5 and 25p (crowns), rarely seen in circulation, are valid payment instruments, such as bullion coins issued by Mint.
Value
In 2006, the House of Commons Library published a research paper that included a price index in pounds for each year between 1750 and 2005, where 1974 was indexed at 100.
Regarding the period 1750-1914 the document states: "Although there is considerable fluctuation from year to year at the price level before 1914 (which reflects the quality of harvests, wars, etc.). There is no long-term stable increase in the price associated with the period since 1945 ". It goes on to say that "Since 1945 prices have risen every year with an aggregate rise of more than 27 times".
The index value in 1751 was 5.1, rising to a peak of 16.3 in 1813 before declining as soon as the end of the Napoleonic War became around 10.0 and remained within the range of 8.5-10.0 by 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 - the price was only about three times higher than the previous 180 years.
Inflation had a dramatic effect during and after World War II - the index was 20.2 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.
The following table shows the equivalent amount of goods and services, which in a given year can be purchased with à £  £ 1.
The table shows that from 1971 to 2015, the British pound lost about 92% of its purchasing power.
The smallest coin in 1971 was 1 / 2 p, worth about 6.4p in the price of 2015.
Exchange rate
Pound is freely purchased and sold at foreign exchange markets worldwide, and its value relative to other currencies therefore fluctuates.
On August 27, 2017, Ã, Â £ 1 worth US $ 1.289, EUR1.0808, Â ¥ 141, CHF 1.22329, A $ 1.6247, C $ 1.6083 or INR 82.50.
Backup
Sterling is used as a reserve currency worldwide and currently ranks fourth in the value held as a reserve.
See also
- Angevin pounded
- Green pound
Note
References
External links
- Royal Mint
- Types of Coins from the UK List, images, and values ​​of United Kingdom coins
- English coins - information about English coins (from 1656 to 1952)
- Daily Telegraph sterling history
- The Power of British Pound Purchase from 1264 to 2007
- Five Ways to Calculate Relative Value of British Pound, 1830-now
- A historic and modern British bank note image
- The current wholesale exchange rate between currencies
- Historical Currency Converter Historical value of pounds in other currencies
- British banknotes (in English) (in German)
Source of the article : Wikipedia
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