GBP

The pound is the legal tender and monetary unit of the United Kingdom. It is also the fourth most popular traded currency and the third largest foreign exchange reserve currency in the world. The International Organization for Standardization (ISO) currency code of the pound is GBP (Great British Pound), and the most commonly used symbol is £. The pound represents the economy of the Kingdom of Great Britain (including England, Scotland, Wales and Northern Ireland) and is also used by some British overseas territories and crown dependencies. The exchange rate with the pound is fixed at 1:1.

History of the GBP

The history of the pound can be traced back to the 8th century, when the Anglo-Saxon kingdoms used a high-purity silver coin called sterling silver. This silver coin was called a penny, and 240 pieces were minted per ounce. This ratio was adopted after the Norman Conquest in 1066 and became the basis of the British monetary system.

In the Middle Ages, Britain began to use a monetary unit called a shilling, which was equivalent to 12 pennies. In the 16th century, Henry VIII created a gold coin called a crown, equivalent to 5 shillings. In the 17th century, the Bank of England was established and began issuing banknotes. In the 18th century, the Kingdom of Great Britain was established and unified the monetary systems of England and Scotland. In the 19th century, the gold standard was established and 1 pound was fixed at 113.0016 grams of pure gold.

In the 20th century, due to the impact of two world wars and the Great Depression, the pound's gold standard system was abandoned and pegged to the U.S. dollar. In 1971, the United Kingdom carried out currency decimal reform, which equaled 1 pound to 100 new pennies (pence), replacing the original system of 1 pound equal to 20 shillings and each shilling equal to 12 old pennies (penny). .

In the 21st century, the pound has faced some challenges and changes, such as the 2008 financial crisis, the 2016 Brexit referendum and the 2020 COVID-19 epidemic. These events have had an impact on the exchange rate and stability of the pound. However, the pound remains a currency with international influence and appeal, and one that is on the radar of many investors and traders.

Issuance of GBP

The issuance of the pound is primarily the responsibility of the Bank of England, but there are also other issuing agencies, such as a number of commercial banks in Scotland and Northern Ireland, and the governments of Guernsey, Jersey and the Isle of Man. Banknotes and coins issued by these issuing institutions are accepted in the UK, but internationally only British pound banknotes issued by the Bank of England are generally recognized. 

Value of GBP

Pound coins are divided into eight denominations: 1 pence, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, 1 pound and 2 pounds. All coins feature the British monarch's face on the front and different images on the back, reflecting Britain's history, culture and nature5. Pound banknotes are available in four denominations: £5, £10, £20 and £50 (Scotland and Northern Ireland also have £1 and £100 notes). All banknotes feature the portrait of the British monarch on the front and portraits of various British celebrities on the back.

Conclusion

The pound is a currency with a long history and rich connotations, and it is also an important international currency. Understanding the basic situation of the pound can help us better understand the British economy and society, and can also provide us with more investment and trading opportunities.