English money: description and photo. Pound sterling banknotes National currency in England

GBP(English) pound sterling) is the monetary unit of Great Britain. 1 pound = 100 pence. Symbol: £ (Latin Libra - pound), bank code: GBP (Great Britain Pounds). Banknotes in circulation are 5, 10, 20, 50 pounds; coins of 1, 2, 5, 10, 20, 50 pence, 1, 2 pounds. 1/2, 25 pence and 5 pound coins are rare.

Banks of individual territories within Great Britain (Scotland, Ulster, etc.) issue banknotes with their own designs. Formally, these banknotes must be accepted by all UK banks, but in practice there are cases of refusal.

Story

There are several versions of the origin of the name GBP. Some sources believe that the name appeared in the 12th century and originally meant literally “a pound of pure silver.” This is related to the "sterling" - an ancient English silver coin. 240 coins weighed 1 pound (453.6 grams). Large purchases were expressed in “pounds sterling.” On the other hand, it was a way to check the weight of the coins - if the weight of 240 coins was not equal to 1 pound, the coins could be counterfeit or too worn.

In 1955, the Oxford English Dictionary suggested that the name sterling dates back to around 1300 and comes from the common name for a silver Norman penny, which had small stars on it (in Old English: steorling).

The most common theory is that of Walter de Pinchebek, according to which the name was previously used "Easterling Silver"(silver from the eastern lands), which denoted the characteristic alloy of 925 silver from which coins were made in northern Germany. The English called this area of five cities “Easterling”; in the 12th century it became part of Hanseatic League (Hanseatic League, Hansa). This district had its own representative office (“office”) in London and conducted active trade with England, paying for goods with local coins that were of high quality and hardness (pure silver is too soft and wears off quickly). King Henry II made this alloy the standard for English coins starting in 1158. Gradually in speech the name of the alloy was reduced to "Sterling Silver" and became the equivalent of “coin silver.”

The name was finally assigned to the monetary unit in 1694, when the Bank of England first began issuing banknotes.

In modern English, the word used to denote British money is lb.(English) pound, For example, This car costs 10,000 pounds). To distinguish the British currency from the currencies of the same name in other countries, the full form is used in official documents GBP(English) pound sterling). In exchange practice the name has become widespread sterling(English) sterling, For example, The dealer bought sterling and sold US dollars). In less formal texts the term appears British pound(English) British pound). In colloquial speech the word English is used. quid, the origin of which is seen in the Latin phrase “quid pro quo”.

Exchange rate(as of March 5, 2010)
1 USD = 0.67 GBP
1 EUR = 0.91 GBP
100 RUB = 2.23 GBP

Shilling(English) shilling) - a common coin of England, known among the common people as " bean" The symbol of the shilling was the letter S.

During the Anglo-Saxon period, the shilling was only a monetary unit (shilling is the Germanized value of solidus). At first, the shilling was equal to 5 pence; William I the Conqueror gave it the value of 12 pence, which remained until 1971, when the transition to the decimal system was made. 20 shillings made up the English pound sterling.
It was first minted as a real coin in 1502 in the reign of Henry VII (under the name " teston"). It had a total weight of 9.33 g and contained 8.68 g of pure silver.

The coin was not very popular, and the next issue of teston occurred only 42 years later, in 1544.

Henry VIII (1509-47) was in great need of funds, so he reduced the silver content of silver coins from 90% to 40. To maintain the size and weight of the teston (shilling), he began minting it from copper and only covered the coin with a thin layer of silver.

During everyday use, the coin was erased, and the most protruding parts were erased first; in the portrait of the monarch, the protruding nose. This is how a copper nose appeared on a silver coin.

Because of this, the king received the nickname " old copper nose» ( Old Copper nose). (Source "

British pound sterling(eng. pound sterling) is the official currency of Great Britain. Bank code is GBP. 1 pound equals 100 pence. Banknote denominations in circulation: 50, 20, 10, 5, 2, 1 pounds sterling. Coins: £1, 50, 20, 10, 5, 2p, 1p. The name of the monetary unit comes from the words pondus (Latin for “weight, heaviness”) and sterling (from English for “silver coin”).

Traditionally, the kings and queens of Great Britain are printed on the obverse of the pound, currently Elizabeth II. On the back are prominent Englishmen, on 5 pounds there is an image of Elizabeth Fry (reformer of the prison system in Great Britain), on 10 pounds - Charles Darwin (author of evolutionary theory), on 20 pounds of the old model - Sir Edward Elgar (composer), on the new one - Adam Smith ( father of economics). The first President of the Bank of England, Sir John Houblon, is stamped on the £50 note. Only Elizabeth II is depicted on circulating coins.

The pound sterling has been used since the 12th century. It is believed to have been introduced by Henry II in 1158 and could be exchanged for silver and, from 1816 to 1914, for gold. In the first quarter of the twentieth century, the exchange rate was fixed: one pound gave 4.9 US dollars.

The final abandonment of convertibility into precious metals occurred on September 21, 1931, as a result of the Great Depression. The abandonment of the gold standard led to a 20% devaluation of the pound. In 1946, as a result of the Bretton Woods Agreement, it became freely convertible. A failed attempt to peg the exchange rate to other currencies led to its devaluation by 30% in 1949.

In 1966, Great Britain was forced to introduce restrictions on the conversion and export of currency. At that time, tourists were allowed to take no more than 50 pounds with them; this ban was lifted only in 1970. Moreover, in 1966, the pound was devalued by another 14% to $2.71.

The next crisis occurred in 1976, when the rate dropped to $1.57. At that time, the United Kingdom was granted a loan from the IMF to support the national currency in the amount of 2.3 billion pounds sterling. The lowest historical value was recorded in 1985, when the quote was $1.05.

In 1988, under the government of Margaret Thatcher, an attempt was made to peg the pound to the German mark. But already in 1992 this had to be abandoned: within a matter of days, the British currency was devalued by 25% under pressure from currency speculators. It was from these operations that George Soros' Quantum hedge fund managed to make money.

For the summer of 2011, the pound is quoted in the range of 1.62-64 dollars. The exchange rate of the British pound to the euro is 1.11-15 euros per pound sterling.

The British pound ranks fourth in the world in terms of foreign exchange reserves after the US dollar, euro and Japanese yen. The Bank of England is responsible for issuing currency and conducting monetary policy.

The value of the pound sterling in relation to other currencies ensures the high development of UK industry (the country ranks seventh in the world in terms of gross domestic product).

The British pound is one of the main currencies in the Forex market. The UK maintains high interest rates, which makes the pound attractive for position trades. In addition, British macroeconomic indicators show better data than the euro area as a whole. The price of the pound is seriously influenced by energy prices, as it is usually in a positive correlation with oil prices.

The quotation of the English pound is usually called a cable - in honor of the cable that was laid along the bottom of the Atlantic in order to transmit prices by telegraph from the Old World to the New and back. Traditionally, the so-called reverse quotation is used for the pound, that is, the number of dollars included in one unit of another currency is indicated.

Banks and exchange offices in London post their quotes in the same way as on the Forex market. When traveling there, you can take dollars or euros with you. The best quotes, as a rule, are in money changers in the center. In this case, it is necessary to pay attention that no commission is taken from the operation. On this page you can find out the current exchange rate of the English pound to the ruble and track the dynamics of its changes over the past years. For example, in 2016, the minimum value was observed on December 30, then one pound sterling was worth 73.9 rubles, and the maximum was on January 22, on this day one British pound was valued at 118.4 rubles.

The section also provides a table of cross rates between the pound and the euro, US dollar, Swiss franc and other currencies, which will help determine the value of the British currency relative to the currencies of other countries.

You can transfer a certain amount from one currency to another using a currency converter. In addition, you can use it to find out the cross exchange rate for any date, for example, on January 17, 2015, the euro to pound sterling rate was 1 to 0.73, so to buy 120 euros, you would need 88.05 pounds.

The currency of England is pounds sterling, which is divided into 100 pence (singular penny). Bank symbol: GBP. Currently, pounds sterling is the world's reserve currency. This is facilitated by the stable UK economy. At the moment, sterling makes up a third of the world's foreign exchange reserves, despite being inferior to the euro and dollar. Within England itself, both paper notes and coins are in use. Let us remember that Great Britain is one of the few EU countries that refused to switch to the euro and kept its national currency. This is partly due to the fact that the pounds are stable, but on the other hand, the pride of the British people, who wished not to give up their national money, played a role.

The history of the appearance of the English currency

The history of this currency dates back to the time of King Offa of Mercia (East Anglia). He first introduced the silver penny into use, which became widespread among the Anglo-Saxon states. Subsequently, 1200 years ago, around 775, the first British silver coins appeared. They were minted from a pound of pure silver, which produced 240 coins - a pound sterling. Since then it has been the only national currency of England.

A little history

From the 8th to the 13th centuries, the penny was the most common coin in England. Even though smaller money existed, people preferred to cut it in half and quarters and use it for change. Very few pennies were minted in gold, and such a coin was considered very rare and was equal to twenty pieces of silver.

Over time, new coins of different denominations were introduced, and accordingly their names: crown, penny (farthing), sovereign and guinea. More and more gold coins began to be minted. At the same time, their value has noticeably decreased. Over time, copper, tin and metal coins were introduced. In 1660, coinage was transformed and forged coins began to be produced. In 1937, coins made of nickel brass were introduced, and in 1947, silver coins were replaced with cupronickel.

Pound decimal system

In 1971 (15 February) the pound sterling was converted to a decimal system to simplify calculations. Shillings and pennies were replaced by a single coin. The pound became equal to 100 pence, which was mostly pronounced "pi". This helped to differentiate between old and new coinage during the transition to the decimal system. And back in 1969, old coins began to be gradually withdrawn from circulation.

The first decimal coins were made of cupronickel, and in 1971 they appeared in bronze, which was later replaced by steel, first coated with copper. The modern penny appeared in 1998. What currency does England currently have from previous coinage? Of the oldest coins, only copper ones remain.

Currency of England: origin of the name, use

Sterling in English means “pure, of good quality.” This is where the name of the English currency came from. The full name in the singular is pound sterling. Used mainly in a formal context or, if necessary, as a distinction from other currencies of a similar name. In everyday life it is reduced to pound or sterling. Sterling is considered the oldest European currency still in circulation.

Coins

The decimal system, which was adopted in England in 1971, is still in effect. Pennies are usually denoted by the letter “p”. What is the currency in England now? Banknotes and coins in denominations of 1, 2, 5, 10, 20 pence. There are both one and two pounds. All coins are minted with a portrait of Elizabeth II, along the edges there is a letter engraving denoting “By the Grace of God, Queen Defender of the Faith.”

On the reverse side of the coins are depicted: the Abbey portcullis, the coat of arms of the Prince of Wales, the thistle, the lion, the Tudor rose, the leek and the symbol of the British Isles. On the two-pound coin, in addition to the abstraction symbolizing the technological development of England, there is an engraving “Standing on the shoulders of giants”. These words belong to Isaac Newton. Crowns can still be found in everyday life. They are considered legal money, just like coins issued by the mint.

English banknotes

England's currency in the form of banknotes was first issued in 1964 by the Bank of England. The first pounds sterling come in denominations of 5, 10, 20 and 50. They all feature Queen Elizabeth II on one side. This is the only monarch whose image was used on banknotes to prevent counterfeiting of banknotes. On the reverse side of the paper pounds are images of various historically significant persons (natives of Great Britain): Elizabeth Fry, Charles Darwin, Edward Elgar, Adam Smith and John Houblon.

The English currency is called the pound sterling, one unit of which contains 100 pence. In the singular they are called peni. Although sterling is inferior to the dollar and euro, it accounts for 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 English currency

The history of its creation goes back to the Mercian king Offa, 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 pounds sterling appeared.

origin of name

Since then, this is the name of English money. In this language, sterling means “of good quality, pure.” The second component of the name of the currency was the measure from which the coins were minted. The result was the pound sterling (singular). This name is used to officially distinguish it from similar-sounding currencies. In everyday life, English money sounds simpler - sterling or pound.

The Unusual History of Currency

This is the oldest currency that still exists in global circulation. The first money in England appeared with money changers. These were master jewelers. They kept precious metals and products made 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 backed by a minimum of gold. Loans began to be issued. Interest was paid for using the money. Moreover, the loan amounts were much greater than the available assets. King Henry I decided to fight the scammers.

He took away the right to issue money from jewelers and created a system of measuring rods, which lasted until 1826. The denomination was indicated by notches. The rod split along them and was put into circulation. One part remained with the monarch as proof of the authenticity of the original currency.

After Queen Mary came to power, minted English money in 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 coins. 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 coins were issued for the first time. Nickel-brass coins appeared in 1937, and cupronickel coins in 1947.

Decimal pound system

In February 1971, the decimal system was introduced to simplify calculations. The government replaced pennies and shillings with one coin. One pound became equal to 100 pence. This differentiated the old and new coinage. In 1969, the previous ones began to be withdrawn from circulation.

The first coins of the decimal system were made of cupronickel. In 1971, the minting of bronze money began. Over time, it was replaced by copper-plated steel. Modern coins appeared in 1998. Of the old samples, only copper coins remained. At that time, the pound sterling to the ruble was 1:24.6966. This value changes every year.

Description and banknotes

What is the money 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 1 and 2 pound coins in use. The coins depict Elizabeth II, and there is letter engraving on the edges of the money. On the reverse side is minted:

Abbey portcullis;
thistle;
Tudor rose;
coat of arms of the Prince of Wales;
symbol of the British Isles;
leek.

Crowns are still in circulation today 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. Prominent figures from the country's history are depicted on the reverse side.

Rate

The British currency is one of the most valuable in the world. The pound sterling exchange rate against the ruble froze at 1:95.3. This is data from the Central Bank of Russia. Despite the fact that the British currency is weakening somewhat, the demand for pounds remains the same. The exchange rate of the pound sterling against other currencies remains virtually stable. To the euro - 1:1.239, to the American dollar - 1:1.413, to the Swiss franc - 1:1.348.

The monetary unit of Great Britain - the pound sterling (from the Latin pondus (gravity, weight) - in the past a measure of weight and a monetary unit of account) has been put into circulation since the time of the Anglo-Saxons. The name of the monetary unit reflects the mass content of the metal used to mint British coins - pence; 240 pence were minted from one pound of silver, which were also called “sterlings”, 20 pence made up a shilling, respectively, there were 12 shillings in 1 pound. The word “sterling” meant money of standard weight and fineness, which was the name for large silver pennies. In the early Middle Ages, the monetary unit of many Western European countries was the so-called Roman pound, or Libra. Since the mass of 240 pence, or sterling, was equal to a unit of mass - a pound, i.e. Libra, the pound sterling still has the symbol L.

The pound sterling was used long before the emergence of a centralized state - back in the 9th-10th centuries. In the XIV century. In England, gold pounds sterling appeared in circulation until the end of the 18th century. There is a bimetallic monetary system. The first £1 coin was minted in 1489 - a gold sovereign (sovereign - monarch). The first sovereign weighed 15.55 grams of .994 gold, which corresponded to the value of a pound of silver coins, or 20 shillings. The obverse depicted Henry VII on the throne, and the reverse depicted a rose with the coat of arms of the state. The name “sovereign” comes from the image on the obverse of the coin of a luxuriously decorated king on the throne (Fig. 4.5).

Rice. 4.5. Gold pound sterling (sovereign) sample 1642

At the end of the 18th - beginning of the 19th centuries. England becomes the first country of gold monometallism. By law of 1798, the coinage of silver was prohibited (the payment power of silver coins was limited to the amount of 25 pounds sterling for each payment). However, since during this period England was at war with France, the exchange of banknotes for gold (characteristic of gold monometallism) was stopped, and until 1821 banknotes that were not redeemable for gold were in circulation.

From 1816 to 1914, a gold coin standard system operated in England. According to the act of R. Peel (1844), the issue of banknotes was almost 100% backed by gold, and the fiduciary issue should not exceed 14 million pounds. Art., which were secured by loans issued by the Bank of England to the state. This law proclaimed the final monopolization of issuing activities by the Bank of England. The Bank of England is one of the oldest banks of issue in Europe, founded in 1694. Issuing activities were monopolized in 1844. Currently, it is part of the system of banks of issue in the EU countries.

The issuing banks that existed at that time retained their issuing rights at a certain fixed level, but the newly created banks did not receive such a right.

In 1914, the Bank of England ceased to be exchanged for gold, and gold coins were withdrawn from circulation. To cover military expenses, the government issues treasury notes. In 1925, the exchange of banknotes for gold was restored, but in a reduced form of the gold bullion standard. Despite the significant decrease in the purchasing power of the pound sterling, England did not devalue it and carried out a restoration of the currency, restoring the pre-war gold content of the monetary unit. 1925 was the beginning of monetary reform, which ended in 1928 with the withdrawal of treasury notes from circulation and the granting of the Bank of England the right to fiduciary issue of banknotes in the amount of 260 million pounds. Art. An issue in excess of this amount could only be carried out with the consent of the Treasury, confirmed by Parliament. Until the beginning of the 30s of the XX century. Great Britain retained its status as a reserve currency issuer.

The gold bullion standard existed until 1931. During the global economic crisis, England was forced to abandon the exchange of banknotes for gold. Since that time, a system of fiat credit money has been in effect in England. The UK's position in foreign markets is weakening, the British currency is gradually losing its leading position and turning into a secondary reserve currency.

The main type of money in the UK, as in other countries, is money in non-cash form, i.e. funds in bank accounts - deposit money. Cash - banknotes and small change - makes up about 32% of the total money supply in circulation.

The main issuer of money is the Bank of England, coins are issued by the Treasury, non-cash issues are concentrated in commercial banks and other credit institutions.

Currently in circulation are fractional change coins in denominations of 1 penny, 2, 5, 10, 20 and 50 pence (Fig. 4.6), as well as a composite coin in denomination of 2 pounds sterling.

Rice. 4.6. 1998 50p coin

The first partially printed banknotes appeared in Great Britain already in 1695 - these were 12 thousand banknotes in six denominations (from 10 to 100 pounds), on which the name of the bearer, the date and the signature of the cashier were written by hand. Banknotes of this type lasted for more than 100 years. In 1809, fully printed banknotes were issued for the first time, with only the cashier's signature handwritten on them. Since 1854, the signature began to be printed using a typographic method. Early Bank of England notes were larger than modern ones, single-sided, and printed in black on a white background. Since 1960, portraits of the reigning monarch, Queen Elizabeth II, have become a distinctive feature of English banknotes. Since 1970, historical figures began to be depicted on the reverse side of banknotes.

The Bank of England currently issues banknotes in denominations of £5, £10, £20 and £50. The general composition of the front sides of banknotes of all denominations is the same: on the right is a portrait of the Queen, in the center in an oval there is a watermark also in the form of her portrait, on the left is a seated figure of Britain (different on banknotes of different denominations). Below to the left of the watermark is a large geometric figure (circle, rhombus, square or triangle) to help visually impaired people (Fig. 4.7). On the front of the £50 note is a portrait of Queen Elizabeth II and the Britannia medallion; on the reverse side is a portrait of the first President of the Bank of England, Sir John Houblon.

Rice. 4.7. 1994 £50 note

Since 2002, along with pounds sterling, euro banknotes and coins have been in circulation. The evolution of the UK monetary system is shown in Fig. 4.8.

Rice. 4.8. Stages of development of the UK monetary system

Money-credit policy

The main goal of UK monetary policy is to achieve price stability. Monetary policy, along with the Bank of England, is carried out by the Treasury. Unlike other central banks, the Bank of England cannot conduct monetary policy) "independently of the government, since in 1946 it was nationalized - the share capital was bought by the British Treasury. The implementation of monetary policy is based on two main elements: annual targets set by the government inflation targets and a commitment to an open and predictable decision-making regime. In conducting monetary policy, the Bank of England's responsibility is to set the level of short-term interest rates in accordance with government targets.