United Kingdom Pound - GBP

Overview

The official currency of the United Kingdom is the British Pound (GBP), which is used in Great Britain, British Overseas Territories, the South Sandwich Islands, and the British Antarctic Territory, as well as Tristan de Cunha. The Pound is divided into 100 pence. Another name used for the Pound is Sterling. The symbol for the Pound is £.

Economy

• The United Kingdom is rated as the sixth-largest economy in the world.
• The main industries range from aerospace to financial services.
• Export products are beverages, tobacco, fuels, manufactured goods, chemicals, and food.
• Import products are foodstuffs, fuels, machinery, and manufactured goods.
• Unemployment is estimated at 7.6%.

History

• It is difficult to estimate when the Pound originated; but sources indicate that the Pound was already in circulation during the Anglo-Saxon period. During the medieval period the Tealby penny was circulated and was the standard unit used until the 20th century.
• In 1552, silver coinage was introduced made of sterling silver.
• In 1663, gold coinage was introduced. The silver coinage remained and was used for importing goods; gold was used for exporting goods. This made Britain a gold standard country.
• The first paper money was issued in 1694, after the Bank of England was established.
• In 1861, the gold standard was adopted again.
• In 1914, after the outbreak of World War I, the gold standard was abandoned and treasury notes became legal tender.
• In 1940, the Pound was pegged to the US Dollar and later became part of the Bretton Woods system.
• In 1971, the Pound was changed to a free-floating currency.
• In 1976, the country had a Sterling crisis.
• In 1988, the UK Treasury instituted a policy whereby movements of the British Pound "shadowed" those of the German Mark.
• In 1990, the UK became part of the European Exchange rate mechanism, but withdrew in 1992.
• The UK had the option to adopt the Euro in 1999, but declined.

General Information