Pound sterling rate 10/01/2024 – 07:00
- Against the US dollar: 1.2702
Pound sterling – British currency value and exchange rate
The pound sterling, also informally known as the British pound, is the official currency of the United Kingdom. It is also used in the Dependencies of Great Britain, i.e. the British Antarctic Territory; Falkland Islands; in Gibraltar; Guernsey; Isle of Man; jersey Saint Helena, Ascension Island and Tristan da Cunha; South Georgia and the South Sandwich Islands.
The pound sterling is denoted by the symbol “£”. 1 pound is divided into 100 pence.
Sterling was introduced into circulation by King Henry II of England in 1158, and was later replaced by silver. This state of affairs continued until 1816, when the convertibility of the pound was changed to gold. The currency was valid in this state until 1914. Later, the pound was converted into gold for a short time – the notes could be exchanged for bullion strips – but this system was eventually abandoned in 1931 during the Great Depression.
Until the 1970s, the pound was divided into 240 pence or 20 shillings. However, in 1971 the pence was converted to the decimal system, so since then the pound has been divided into 100 pence.
The pound is currently known as one of the world's strongest currencies, but it was affected by various crises in the 20th century. The pound sterling became fully convertible in 1946, so Britain could borrow $3.75 billion. from the United States. Later attempts were made to link the exchange rate of the pound to, for example, the US dollar, but these attempts led to a devaluation of the British currency.
In 1966, the British government banned tourists from carrying more than £50, among other things, in the face of falling currency rates. This restriction was lifted four years later. In 1976, Great Britain had to borrow £2.3 billion from the International Monetary Fund due to the devaluation of its currency against the dollar. In 1985, the pound exchange rate was at an all-time low of $1.05.
In 1990, the pound entered the ERM system (European Currency Exchange Mechanism), the exchange rate was linked to the German mark. Two years later, Great Britain was forced to withdraw the pound from this mechanism, after the so-called Black Wednesday – September 16, when a group of speculators with billionaire George Soros launched a speculative attack on the pound, which reduced the value of this currency by 25%. in few days.
When joining the EU, Great Britain negotiated a clause that allowed it to retain the pound – for this reason, the British currency did not enter the ERM II mechanism.
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