What money is in England. British pound sterling - history of currency, banknotes and coins
The modern monetary unit of Great Britain is known as GBP which is equal to 100 pence. Banknotes in use are represented by the following denominations: 1, 5, 10, 20, 50. Among the coins, 1 and 2 pounds, as well as 1, 2, 10, 20, 50 pence are distinguished. The British call the coin "penny", 2 pence - twopence (and contrary to all the rules of reading, it is proudly called "tapens"), 3 pence - threepence.
At different times, 1 pound (pound) had a completely different reverse. If on the obverse we were always greeted by Queen Elizabeth II, then, starting in 1983, on the reverse side one could see plant themes, animals, bridges, as well as images of the royal coats of arms and shields of Belfast, London, Cardiff and Edinburgh.
But what kind of money was in use before? In 1971, Great Britain switched to a decimal monetary system, and “farting” and its derivatives third farting (third), quarter farting (quarter), half farting (half) were completely removed from circulation.
The initial issue of the silver farthing began under Henry III in the 13th century, but the weight of such a coin was constantly changing. In the 17th century, under King James I, a copper farthing appeared, the diameter of which was 15 mm. The end of the 17th century was marked by the release of a token, which was equal in value to a farthing and a halfpenny. At the beginning of the 19th century, “farting” was again produced, which was made of silver, gold and bronze.
Coins of England of the 16th century: shilling and floring
The first mention of the shilling dates back to the 16th century during the reign of Henry VIII. The “shilling” coin, which was often called a teston, was minted from copper, and the top layer was covered with silver.
Since the most prominent parts immediately appeared on the coin when it was used, and this was the nose of the king, the ruler was nicknamed “the old copper nose”. Later, the silver shilling continued to be issued under the reign. During the reign of George VI and Queen Elizabeth II, the last shilling was minted, the minting of such coins was discontinued in 1971.
However, before the appearance of the shilling, the florin floring was in circulation, which until the beginning of the 20th century was minted from 500 silver. Subsequently, it was replaced by two shillings (two shilling).
The appearance of the “penny” coin
The history of the British penny goes back to the distant 8th century, but the common English penny began to be issued a little later, in the 10th century under King Edgard. Since then, the weight of the coin has gradually decreased, and the amount of silver has decreased, as a result of which, already in the 16th-17th centuries, the “penny” coin acquired a small shape and light weight. New life was given to money by Queen Victoria, who established the minting of bronze coins in the middle of the 19th century. The modern "penny" is a hundredth of a pound sterling and is made of copper-plated steel.
- is the currency of Great Britain , 1 f.= 100 pence - bank code - GBP. the obsolete abbreviation UKL is used. Banknotes in denominations of 5,10,20, 50, coins of 1, 2,5, 10, 20, 50, 1/2 are put into circulation. Coins of 1/2, 25 are very rare. pence and 5.
As part of the UK, individual territories issue banknotes with their own design, but there are times when they are refused to be accepted.
There are several origins of the name, some sources believe that it appeared in the XII century and meant literally the following - lb. An ancient English silver coin was called sterling. 240 coins weighed 1 tower pound. - approximately 350 grams or 1 troy f. - approximately 373.24 grams. For large buyers used this measure, so they checked the weight of the coins - if the weight of 240 coins does not equal 1 f-y ,
the coins were either too worn or counterfeit.
English banknote
The name has finally been assigned to the monetary unit since 1694, when the Bank of England issues the first banknotes. Now in English the word f is used to denote money. , official documents use the full form − GBP, the name is common on the exchange sterling.
The first English coin was minted in 1489, as golden severn- the most reliable unit in the world today. Registration of all banknotes issued in 1990-1994. executed according to a single compositional pattern. The three lowest denominations have two versions, they differ very little from each other - in color tonality, images and details.
Banknotes have a set of modern security features: a multi-tone mark, a metallized diving-type security thread, magnetic protection made by local application of ferromagnetic components to certain areas of the security thread, foil stamping (only on banknotes in 50 ). Since 1999, a banknote of a new series has been put into circulation. This banknote has additional elements of counterfeit protection: kinegram and luminescent protection.
On a banknote 5 the main plot is - on the front side - a portrait of Queen Elizabeth II, a medallion of England, on the back - a portrait of the scientist George Stephenson, an image of a locomotive and a railway bridge. On a banknote 10 - on the front side - a portrait of Queen Elizabeth II, a medallion of England, on the reverse side - a portrait of the English writer Charles Dickens and a scene of a croquet game.
On a banknote 20 1991-93 - on the front side is a portrait of Queen Elizabeth II, a medallion of England, on the reverse side - a portrait of the English physicist Michael Faraday and a lecture scene at the Royal Union in 1826.
20 sterling 1999 model - on the front side is a portrait of Queen Elizabeth II - on the reverse side - a portrait of the composer Edward Elgar (1857 - 1934) and a view of the facade of Worcester Cathedral.
On a banknote 50 (issue of 1994) - on the front side - a portrait of Queen Elizabeth II, England medallion, on the reverse side - a portrait of the first president of the British central bank, Sir John Houblon, and an image of his house on Triadneedle Street.
The exchange rate is set during trading on the foreign exchange market and fluctuates constantly. In 2007 - is 2.10 dollars, which allows this currency to maintain the proud title of the most expensive in the world. England is rightfully proud of its currency and being a member of the European Union, the United Kingdom of Great Britain does not want to tie its economy to the Euro currency and supports its national currency in every possible way.
With British pounds, I once had an embarrassment. Somehow passing by a branch of a bank, I noticed a favorable exchange rate. I decided to buy, diluting my dollar "foreign exchange reserve" with pounds. They gave me beautiful £50 bills. I put them in a distant locker and forgot. And the Bank of England, in the meantime, take and withdraw from circulation 50-pound notes of the 1994 model, and these are exactly what I had.
With grief in half, they managed to exchange them for new ones, but with a big loss.
Name of the currency in England
Pounds sterling is the most beautiful money I have ever seen. With taste from the British, no matter what area you take, everything is in order. The pound sterling is the official means of payment in the following countries:
- Wales.
- Scotland.
- England.
- Northern Ireland.
Despite the fact that the UK has been a part of the European Union since 1973 and until now (despite the referendum on leaving the EU), it has never been a member of the eurozone and has always had only its own currency - the pound. The euro is not a legal means of payment in England.
Incidentally, before the Second World War, the British pound was the main reserve currency in the world, and not the US dollar. In the 30s, the pound had the slang name "cable" (cable), since all transactions on the exchanges at that time were carried out, firstly, in pounds, and secondly, the telegraph was the means of communication.
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After the Second World War, when the British entered a severe economic crisis, the pound lost its status as the main world currency. Since then, the main world currency has been the US dollar. Interestingly, the Americans, unlike the British, never took old banknotes out of circulation. The 1899 one dollar bill is still full-fledged legal money.
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The pound is also interesting in that only Elizabeth II could be seen on the banknotes of the British monarchs, and then on the already withdrawn 50-pound banknotes. Now, on all paper English pounds of all denominations, famous cultural or historical personalities of England are depicted.
The English currency is called the pound sterling, one unit of which contains 100 pence. In the singular they are called penalties. Despite the fact that the pounds sterling is inferior to the dollar and the euro, they make up a third of the world's foreign exchange reserves. were able to maintain their independence from the European Union when the country refused to switch to another currency and left the national one.
Creation of the English currency
The history of its creation goes back to King Offa of Mercia, who ruled in East Anglia. It was this monarch who first introduced the silver penny into circulation, which immediately became widespread. After 12 centuries, official coins began to be minted in Britain. They were also made of pure silver. Then came the pounds sterling.
origin of name
Since then, English money has been called so. In this language, sterling means "good sample, clean." The second component of the name of the currency was the measure from which the coins were minted. The result is the pound sterling (singular). This name is used for official distinction from similar sounding currencies. In everyday life, English money sounds simpler - sterling or a pound.
Unusual history of currency
This is the oldest currency that still exists in world circulation. The first money in England appeared along with money changers. They were master jewelers. They kept precious metals and products from them brought by other people. Receipts were issued for things, which began to be considered the first paper money.
Later, they began to be produced in large quantities, but were provided with a minimum of gold. Loans began to be issued. Interest was paid for the use of money. Moreover, the amounts of loans were much larger than the assets available. King Henry I decided to fight the swindlers.
He took away the right to issue money from jewelers and created a system of measuring rails, which lasted until 1826. The denomination was indicated by notches. The rail was split along them and put into circulation. One part remained with the monarch, as proof of the authenticity of a kind of currency.
After Queen Mary came to power, minted English money from gold and silver began to be hidden. The result was an economic recession. When Elizabeth I came to power, the issue of money was already completely controlled. Coins began to be minted only in the royal treasury.
Gold coins were rare and were equal to 20 silver. Over time, other denominations appeared, which began to be called:
- crown;
- penny;
- sovereign;
- guinea.
Much more gold began to be minted, but the value of such money decreased accordingly. Over time, coins made of metal, copper and tin came into circulation. In 1660, the coinage changed, and forged ones were issued for the first time. In 1937, nickel-brass coins appeared, in 1947 - cupronickel coins.
Decimal Pound System
In February 1971, a decimal system was introduced to simplify calculations. The government replaced pennies and shillings with one coin. One pound became equal to 100 pence. This demarcated the old and new coinage. In 1969, the former began to be withdrawn from circulation.
The first coins of the decimal system were made from cupronickel. In 1971, the minting of money from bronze began. Over time, it was replaced with copper-plated steel. Modern coins appeared in 1998. Of the old samples, only copper ones remained. At that time, the pound sterling to the ruble was 1:24.6966. This value changes every year.
Description and banknotes
What money is in the UK now? The decimal system is still in effect. The official currency of the country is the pound sterling. In everyday life there are bills and coins in denominations (in pence):
There are in use money for 1 and 2 pounds. Elizabeth II is depicted on the coins, along the edges of the money there is a letter engraving. On the reverse side is minted:
- abbey grate;
- thistle;
- Tudor rose;
- coat of arms of the Prince of Wales;
- symbol of the British Isles;
- leek.
Crowns are still in circulation and are considered legal money. The first banknotes were issued by the Bank of England in 1964. They have the following denominations:
All depict Elizabeth II. On the reverse side, prominent figures from the history of the country are drawn.
Rate
The British currency is one of the most expensive in the world. The pound sterling against the ruble stood at 1:95.3. This is the data of the Central Bank of Russia. Despite the fact that the British currency is weakening somewhat, the demand for pounds remains the same. The pound sterling exchange rate in relation to other currencies remains practically stable. To the euro - 1:1.239, to the US dollar - 1:1.413, to the Swiss franc - 1:1.348.
Each state has its own abbreviations for currencies. In Russia it is RUB, in America it is USD, in Europe it is EUR. Surely, many have heard the abbreviation of the monetary unit more than once - GBP. What currency has this abbreviation, which country does it belong to, and what is its market rate today? In this article, we will analyze this interesting question in detail. And also learn a little about the history of origin and little-known facts about the GBP. The currency of which country, or rather countries, is hidden under this designation and why is it so named? Let's figure it out!
GBP: whose currency?
This abbreviation stands for Great Britain Pound. From here it is easy to understand that this monetary unit is the national currency of Great Britain. A more familiar name for us is "pound sterling" or pound sterling. It is not uncommon to hear abbreviations like "pound" or "English pound" as well. So, we found out the main question regarding the GBP - what kind of currency and which state does it belong to. It turned out that it operates on the territory of the whole kingdom - Great Britain. This means that GBP circulates not only in England, but also in other countries of the United Kingdom - in Wales, Scotland and Northern Ireland. In these territories, it is the official currency.
However, this is not all that can be said about the GBP. What is the parallel currency in the lands of Jersey, Guernsey and the Isle of Man, which belong to the Kingdom of Great Britain? That's right, pound sterling. GBP is also legal tender in the Falkland Islands, Saint Helena, Gibraltar, Tristan da Cunha and Ascension. Thus, the territory "covered" by the British pound is expanding significantly. But what is its origin and why is it "pound" - a term also known as a unit of mass? Now let's find out.
History of the origin of the GBP
As often happens, there are several versions of the appearance of the name "pound sterling", generally accepted today. Consider the most plausible and popular of them.
Version one
Walter Pinchebeck's theory is quite widespread. It reads as follows: initially, the British currency was called Easterling Silver, which can be deciphered as "silver from the east / eastern lands." His 925 alloys were used in northern Germany to make coins. But what about England?
The fact is that the British called this area Easterling (5 cities that entered and actively traded with it in the 11th century. Naturally, they paid for the goods sold with these coins. In 1158, Henry the Second made an alloy of the 925th test Gradually, the name used in everyday speech was reduced to and simply Sterling.Since 1964, it was finally assigned to the national currency of England, and the State Bank began issuing banknotes of the same name.
Version two
There is another version about the origin of the GBP. What kind of currency became its "progenitor", according to another theory? According to some sources, in ancient England, which were used in the amount of 240 pieces, they weighed exactly 1 tower pound (this is approximately 350 grams). On the basis of this criterion, the full weight of the coins and their authenticity/degree of wear were checked. If such a quantity of silver weighed less than one pound, they were considered false. Based on this, an expression appeared that later became common - "a pound of pure silver" or "pound sterling" ("sterling" from Old English - "silver").
In modern Great Britain, the abbreviated name is most often used - pound, which means "pound" in translation. In official documents, the full name is written - "pound sterling", in exchange trading the word "sterling" has been assigned to the monetary unit of Britain.
Issue and circulation of GBP
The national currency of Great Britain is issued not only in England, but also in other countries of the kingdom. Banknotes denominated in pounds sterling may also be issued by banks in Scotland and Northern Ireland. At the same time, they participate in the commodity-money turnover throughout the UK. For example, sterling can be accepted as payment in England, and Irish in Scotland, etc.
However, this does not mean that they are legal tender even in the issuing countries themselves. In the strict sense, only banknotes issued by the Bank of England (on the territory of England and Wales) are considered legal tender, and therefore in practice there are cases of refusal to accept Scottish or Irish pounds.
It is also interesting that the overseas territories of Britain and its crown lands also issue their own banknotes in their own monetary units, which are equal to the pound sterling and bear similar names (Gibraltar, Manx, Jersey pound, etc.).
GBP and currencies of other countries
Sterling is one of the most expensive monetary units in the world currency market. On April 30, 2014, one English pound cost 60 rubles 12 kopecks. During the year, its value increased by more than ten rubles (which is a rather significant change). The average rate of buying GBP in exchange offices is 59 rubles 22 kopecks, selling - 61 rubles 41 kopecks.
Currency traders, as well as those who sell/buy dollars for pounds sterling (and vice versa), will also be interested in GBP/USD. As of April 30, this ratio for the Central Bank of the Russian Federation was 1.68. Against the dollar, the British pound also gained significantly over the year. In April 2013, the rate was approximately 1 to 1.55. And what is the situation with the GBP/EUR pair? At the moment, the exchange rate "pound sterling / euro" is approximately 1.22. A year ago, this ratio was lower - at the level of 1.19, and last month it was 1.20 euros per one British pound.
Thus, lately we can talk about a clear and constant trend of growth and strengthening of the British pound against the currencies of other countries, in particular the US dollar, euro and ruble.
Conclusion
In this article, we found out a lot of interesting and useful information about the GBP: what kind of currency and which countries it belongs to, what is the history of its origin and what are the modern rules for its issuance / turnover. In addition, we considered some of the most interesting GBP rates for us in the global currency market, and also compared the current values with those that took place a year ago. We hope this information was new for you and allowed you to expand your knowledge about the English pound.