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 Queen Elizabeth II always greeted us on the obverse, 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.

The pound sterling is the official currency of Great Britain and one of the world's reserve currencies along with the US dollar, the euro and the yen. At the moment, the quote of the British pound is one of the highest on financial exchanges.

Currency Pound Sterling

The pound sterling is the national currency and means of payment for Britain, Scotland, Wales and Northern Ireland.

In addition, the English pound acts as:

• parallel currency of the crown lands (islands of Guernsey, Jersey and Maine);
• legal tender in the British Overseas Territories (Saint Helena, Gibraltar and the Falkland Islands).

The right to issue the pound sterling in addition to the Bank of England have:

• three banks of Scotland;
• four banks in Northern Ireland;
• Bank of Jersey.

The Bank of Scotland, the Royal Bank of Scotland and the Clysdale Bank issue banknotes predominantly in brown, green and olive colors.
Banks in Northern Ireland print sterling in grey, blue-green, purple and blue.

The Jersey Pound is usually purple, red and blue in color. Green banknotes, starting in 1963, are gradually withdrawn from circulation.
The banknotes issued by these banks, although they have a design different from the original (banknote of the Bank of England), according to the law, must be accepted by any institutions.

But, as practice shows, in fact, there are quite often cases of refusal to accept such banknotes.

The high value of the British pound against major world currencies contributes to the growth of the UK industry. A reflection of this growth is the volume of GDP, whose indicators allow the country to enter the top ten.

On international exchanges, the slang term for the pound is often used - "cable". Came into use in the 1930s. this designation is associated with the laying of a telegraph cable along the bottom of the Atlantic, which ensures the interaction of the financial markets of the Old and New Worlds.

Designation

In the international monetary system, the pound sterling is denoted by the symbol £. This is nothing more than the English abbreviation LSD, whose full designation sounds like: "librae", "solidi", "denari", and is translated as a pound, shilling, pence.

In the banking system, the designation GBR is most often used, however, the abbreviations UKL (United Kingdom Libra) or UKP (United Kingdom Pounds) are occasionally used. The last two are not official.

As for colloquial speech, most often the subjects of the queen call their currency sterling. Often in stores on price tags, the designation is indicated in the abbreviation STG or ster.

Today 1 pound is 100 pence.

Banknotes in denominations of £5, £10, £20 and £50 are in permanent circulation. There are banknotes of a larger denomination, but they are used exclusively in the interbank settlement system. In addition, coins of £1 and £2 and 1, 2, 5, 10, 20, 50 pence are often used in everyday life.

Pound sterling banknotes

In 1694, the newly established Bank of England began issuing banknotes in denominations of £20 to £1,000.

In 1759, £10 notes were introduced, in 1793 £5 notes, and in 1797 £1 and £2 notes.

However, after the Napoleonic Wars, the last two banknotes fell into disuse, and from 1855, denominations from 5 to 1000 sterling were mainly used.

In 1695, the Bank of Scotland is formed, which also starts issuing paper currency and coins.

And in 1825, the Bank of Ireland picked up the baton, launching the production of sterling banknotes.

The Second World War makes adjustments to the emission plans of the Bank of England. Fearing the release of counterfeit banknotes by the Nazis, the Bank of England ceases production of all banknotes whose denomination exceeds £10. And only in 1964 the bank returned to the issue of 10-pound notes. The issue of 20 and 50-pound notes resumes in 1970 and 1982, respectively.

On the obverse of the English pound there is an image of the Queen of Great Britain - Elizabeth II. On the reverse - famous personalities who make up the national pride of the country - scientists, military commanders, writers. However, banks began to place portraits of prominent figures only in 1971.

For example:

• on the 20-pound banknote of the 2003-2007 issue, Adam Smith, the founder of economic theory, is depicted on the reverse of the bill;
• on 5 pounds of 2002 issue there is a portrait of Elizabeth Fry, known for carrying out the reform of the prison system;
• on the banknotes of the 1999-2003 issue, you can see Charles Dickens, Michael Faraday and Edward Elgar;
• the issue of banknotes from 1971 to 1982 was marked by the appearance on the reverse, portraits of such personalities as Isaac Newton, Duke of Wellington, Florence

Nightingale and William Shakespeare

Back in 2013, representatives of the Bank of England announced the issue of new banknotes by 2016-2017. By this year, the production of British banknotes is planned to be transferred to polymeric materials. The first plastic banknotes will be issued in denominations of £5 and £10. The five-pound note will feature a portrait of Winston Churchill, while the ten-pound note will feature Jane Austen.

Pound sterling coins

As mentioned earlier, 1 pound = 100 pence.

In circulation there are coins of 1, 2, 5, 10, 20, 50 pence, as well as £1 and £2. A single coin with a denomination of one pence is called a penny.

It was the silver penny that was one of the most common coins in the 8th - 13th centuries on the territory of the Anglo-Saxon states. As an exchange, this coin was often cut into 2 or 4 parts.

During the reign of King Henry VII in 1487, the production and introduction of the shilling into circulation began, and in 1789 the pound was already minted, later called the sovereign.

1816 marked the establishment of the gold standard in Britain. And since 1817, 22-carat gold began to be used for the production of the sovereign.

The issue of the sovereign continued until the First World War. After 1917, it disappeared from domestic circulation, and in 1932 the coinage of the sovereign was discontinued due to the abolition of the gold standard. Today, gold sovereigns can be found in museums and numismatic collections.

In 1968, the transition to the decimal division of the pound began. The fact is that until 1971, 1 pound was equal to 20 shillings, each of which was divided into 12 pence. However, by this time, almost the entire world had switched to a monetary unit consisting of one hundred fractional parts. As a result, in 1968, the first coins were issued in denominations of 5, 10 and 50 pence, and at the end of the reform in 1971, minting of coins in denominations of 1 and 2 pence began.

As well as on banknotes, there is a portrait of Elizabeth II on the obverse of the coin. The reverse is decorated with the image of the whole royal shield or part of it, depending on the denomination of the banknote.

History of the pound sterling

After the introduction of the euro, the British pound sterling became the oldest currency in use in the world.

According to one version, back in the 8th century, King Offa introduced a silver token - a penny, which quickly began to circulate not only in Mercia (the modern central counties of the British Isles), but also on the lands of neighboring states that later formed the United Kingdom.

Under Henry II in 1158, the first 925 silver coins began to be produced. This contributed to their greater wear resistance in comparison with pure metal. And although gold entered the trade and money circulation as early as 1134, gold coins began to be made in Britain two centuries later.

In 1603, the union of England and Scotland took place, however, until 1707, the Scottish pound remained the official monetary unit of Scotland. And if initially the rates of both currencies had the same values, then after a while the "Scot", having survived the devaluation, fell in price by almost 12 times. After the formation of Great Britain in 1707, the Scottish currency went out of circulation and was replaced by the English pound.

1694 was marked by the release of the first paper notes.

Another of the most important events in the history of the British currency was the Bretton Woods agreement concluded in 1940 with the United States. This agreement established currency quotes in the ratio of £1 = $4.03. However, later the Bretton Woods system faced a crisis, as a result of which, by 1967, the quotation of the "Englishman" in relation to the "American" looked like £1 = $2.4. A year earlier, a special currency regime was introduced in the country, prohibiting the export of more than £50 abroad.

In 1972, the United Kingdom government switched to a "floating rate" policy, that is, a regime was introduced in which the totals were determined by the results of trading in the foreign exchange market.

And in 1990, it was decided to join the European monetary system. However, on September 16, 1992, on the day known as "Black Wednesday", there was a collapse in the quotations of the British pound. After this financial crisis, the UK returned to a "floating" policy.

Despite being a member of the EU, the transition to the European currency has been postponed indefinitely. A survey of the population in 2008 showed that more than half of the British oppose the introduction of the European currency on the territory of the kingdom.

Origin of the pound sterling

As for the name "pound sterling", several versions are put forward here:

1. Some scientists are inclined to believe that “pound sterling” should be translated literally as “a pound of pure silver”, since sterling is an old Anglo-Saxon coin minted just from silver.
2. Others are inclined to the theory that the prototype of the currency was a Norman silver coin with the image of a star (“steorling” in Old English sounds like “star”).
3. One of the main versions belongs to Walter Pinchebeck. According to this theory, an alloy of silver and copper, which received 925 samples, was called "Easterling Silver" or "silver from the eastern lands." This alloy was used in the manufacture of coins in Northern Germany, and was later adopted by Henry II.

Degrees of protection of banknotes of British pounds sterling

The pound sterling banknote is second in the world's anti-counterfeiting rating after the Australian dollar. What to do, the queen does not tolerate twins.

1. Print Quality- all prints are clear, not blurry. Even the smallest elements are clearly visible. For release, special cotton paper is used.
2. Relief printing- in certain areas of the bill, a relief surface is felt.
3. Watermark- upon closer examination, the face of the queen is visible in the light on the right.
4. Security thread- metallized dotted thread "implanted" bill. Darkens and becomes solid when translucent.
5. Hologram- the image on the obverse of the banknote. Changes when viewed from different angles. The £20 note has a holographic ribbon.
6. Fluorescent Protection- under ultraviolet radiation, the sign of the banknote denomination appears. In addition, colored fibers are distributed over the surface, visible only under UV radiation.
7. microtext- capital text in the form of patterns, located under the portrait of Elizabeth II.
8. through register— special protection for the £20 banknote. The currency sign on the banknote becomes complete when held up to the light.

The pound sterling is not just the monetary unit of the United Kingdom. For the British, it is associated with a national treasure and pride in their great past. Having a long history and having survived many upheavals, this oldest currency in the world is still one of the leaders in the global financial market.

There are 100 pence in one pound. Designation £, abbreviation GBP. If we talk about the world's foreign exchange reserves, today the currency ranks third, behind only the euro and the dollar.

In foreign markets, it is the fourth exchange currency after the dollar, euro and yen. Also, the pound sterling is used as a reserve currency around the world, which is affected by the stability of the UK economy.

History, origin of the name and designation

The English pound is denoted by this symbol - £, but few people know what it means. If you look closely, it is the letter L. But there is no logic between "Pound Sterling" and the letter L. The fact is that a pound is a measure of weight, and sterling is an old English coin. And the pound sterling is like a kilogram of kopecks. That is, earlier, when a whole pound of such sterling was collected, they were already considered a separate unit. Later, the Bank of England introduced such a monetary unit as the pound sterling, before that it did not exist. Let's return to the designation, the fact is that the pound is also an ancient Roman measure of weight, but it was called differently in Latin - libra. The English currency, however, is called "Pound" for some reason. In Latin, there was an expression "libra pondo", which meant "a pound of weight", that is, libra is a pound, and pondo is a weight.

Banknotes and coins

English money is issued:

• in coins - 1, 2, 5, 10, 20 and 50 pence, as well as 1 pound and 2 pounds;
• in banknotes - 5 pounds (in 2017, 5 pounds of a new sample appeared, the paper has completely changed, the polymer material is less wrinkled, does not tear, is protected from moisture), 10, 20 and 50 pounds.

Fifty pounds is the highest denomination of a banknote in England, and you can’t get it just like that, only if you specifically ask for it at the bank. The bills themselves are quite large, when compared with the euro, the pounds are both wider and longer. As in any country, in England there are many coins with a rare pattern, which are collected by professional numismatists and just amateurs, most of the 50 pence were issued during the London Olympics, all on a sports theme, almost all sports are depicted on the coins. There are also coins that are dedicated to a certain significant date. The secret of English money is that, having collected a certain number of coins with a certain pattern, you can lay out the coat of arms of England from them.

The first paper banknotes appeared at the turn of the 17th and 18th centuries, when the Bank of England was founded. Now banknotes are issued by 8 banks, which is why their design is different. There is one bank in England, three banks in Scotland, and four banks in Northern Ireland. In 2017, a new £5 note entered circulation in the UK. This money is much stronger and more durable, besides it is much harder to counterfeit. The main advantage of the new banknotes is that they have a longer service life, since the term of the old paper banknotes is only 1.5-2 years, and the new banknotes - 5 years. Counterfeiter protection also plays a role. To date, those who counterfeit banknotes do not have such technologies to exactly repeat the new plastic bill. By the way, Haiti, Costa Rica and the Isle of Man became pioneers in issuing polymer money back in 1983. But the bills did not take root there, because due to the hot and humid climate, the paint began to peel off.

The downside of the introduction of the new banknotes is that bankers and shops will have to spend more than £200 million to accommodate the new money for ATMs and cash desks. In addition, for the production of not paper, but polymer banknotes, it is necessary to launch new equipment, but in the end, according to some experts, plastic will cost more profitably than paper, taking into account the service life, and will certainly be cheaper than metal. Following the first bill, a plastic banknote of 10 pounds is already coming out, with the image of the writer Jane Austen. 20 pounds are planned to be released in 2020, and the old five pound notes (paper) completely went out of circulation in May 2017. The circulation of the first plastic banknotes in the UK is approximately 440 million copies.

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 by 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.

Pennies, pence, shillings and pounds - how do they relate to each other?

1. Pens is the plural of penny. Now £1 = 100 pence. Until 1970-1971 1 pound = 240 pence, 1 shilling = 12 pence.
2. A one pence coin is called a penny. Shillings are long gone. There are 100 pence in one pound. There used to be 20 shillings in the pound and 12 pence in the shilling. But as far as money is concerned, the decimal system has been there for a long time.
3. Only not until 1970, but until February 15, 1971. There were 20 shillings in a pound, 12 pence in each shilling, i.e. 1 pound was equal to 240 pence. On February 15, 1971, shillings were abolished, and 1 pound = 100 pence (for ease of counting).
4. Penny (eng. Penny, plural pence (pence)) British bargaining chip. The name penny (in old English pennige) has a common root with the German word pfennig.
   The old penny was designated d (from the Latin denarius denarius).
   The modern penny (after decimalization in 1971) is denoted p.
   The penny was first minted in the 8th century by King Gibert of Kent (764) and King Offa of Mercia (757-796) on the model of a silver Frankish denarius (denier) issued ten years earlier. On the obverse of the penny was a bust portrait of the king, on the reverse a cross with decorations.
   The weight of a penny was 20-22.5 grains (1.3-1.5 g) of pure silver, the diameter of the coin was about 17 mm, in the 9th century it was about 21 mm.
   Under King Edgar of England (957-975), minting of the common English penny began.
   Pennies were minted in huge quantities (in particular, because of the need to pay tribute to the Danes), they were widely used right up to Rus'. If necessary, the coin was simply cut into pieces, receiving a halfpenny and a quarterpenny.
   Until the conquest of England by the Normans and for the first time after it, the quality of the penny almost did not change. However, over time, the quality of the coins began to deteriorate (due to damage to the coins and non-compliance with the general standard by the coin masters).
   A particularly strong deterioration in the quality of the penny occurred during the reign of Henry II and during the time of King Stephen. In 1180, a new type of penny (the so-called short cross penny) had to be introduced, with greater weight and silver content.
   For a long time, the penny remained the only coin of England. In the XIII century in England, new change coins more and less than a penny were introduced into use: grout (4 pence), halfpenny and farthing (1/4 penny).
   By the XIV centuries, a harmonious monetary system was created in England:
   1 pound sterling = 20 shillings (until the 16th century only a unit of account) = 60 groats (120 half groats) = 240 pence (= 480 halfpenny) = 960 farthings.
5. 100 pence = 1 pound
   when they say penny they mean 1p
6. Until 1971, the ratios between monetary units were as follows:

   1 pound sterling = 20 shillings
   1 half crown = 2.5 shillings
   1 florin = 2 shillings
   1 shilling = 12 pence
   1 groat = 4 pence
   1 penny = 4 farthings