The pound sterling, known colloquially as the pound or quid, is the official currency of the United Kingdom, as well as Gibraltar, the Falkland Islands, and the Isle of Man. It is also the de facto currency of some of the UK’s overseas territories, such as the British Virgin Islands and Cayman Islands.
The pound sterling is subdivided into 100 pence (abbreviated as “p”), which are denoted by the pound sign (£). One pound sterling is equal to 100 pence.
The pound sterling is the world’s oldest currency that is still in use today, with its origins dating back to the 7th century. It has undergone several changes over the centuries, but its basic structure has remained the same.
The Coins of the Pound Sterling
The coins of the pound sterling are issued by the Royal Mint. The current coins in circulation are as follows:
| Denomination | Metal | Color | Weight (g) | Diameter (mm) | Thickness (mm) |
|---|---|---|---|---|---|
| £2 | Bimetallic (nickel-plated steel center, gold-colored brass outer ring) | Silver and gold | 12.00 | 28.40 | 2.50 |
| £1 | Bimetallic (nickel-plated steel center, silver-colored brass outer ring) | Silver and gold | 8.75 | 22.50 | 3.15 |
| 50p | Cupro-nickel | Silver | 8.00 | 27.30 | 1.78 |
| 20p | Cupro-nickel | Silver | 5.00 | 21.40 | 1.70 |
| 10p | Nickel-plated steel | Silver | 6.50 | 24.50 | 1.85 |
| 5p | Nickel-plated steel | Silver | 3.25 | 18.00 | 1.70 |
| 2p | Bronze | Copper | 3.63 | 25.90 | 1.90 |
| 1p | Bronze | Copper | 3.56 | 20.30 | 1.52 |
The Banknotes of the Pound Sterling
The banknotes of the pound sterling are issued by the Bank of England. The current banknotes in circulation are as follows:
| Denomination | Color | Dimensions (mm) |
|---|---|---|
| £50 | Blue | 142 x 77 |
| £20 | Purple | 135 x 77 |
| £10 | Orange | 142 x 77 |
| £5 | Green | 135 x 77 |
The Pound Sterling in the World Economy
The pound sterling is one of the most important currencies in the world. It is the world’s fourth most-traded currency, after the US dollar, the euro, and the Japanese yen. The pound sterling is also a reserve currency, meaning that it is held by central banks around the world as part of their foreign exchange reserves.
The pound sterling’s value is determined by supply and demand in the foreign exchange market. The value of the pound sterling can fluctuate depending on a number of factors, including economic conditions in the UK, interest rates, and political events.
The Future of the Pound Sterling
The future of the pound sterling is uncertain. The UK’s decision to leave the European Union has created some uncertainty about the future of the currency. However, the pound sterling is still a major world currency and is likely to remain so for the foreseeable future.
Conclusion
The pound sterling is a historic and important currency. It is one of the most important currencies in the world and is likely to remain so for the foreseeable future.
