British Pound (GBP)
The British Pound Sterling is the oldest currency still in continuous use, with a history spanning more than 1,200 years. London remains one of the largest foreign exchange trading centres in the world.
Convert GBP
1 GBP in major currencies
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A short history of the Pound Sterling
The pound is the oldest living currency: silver pennies called sterlings circulated in Anglo-Saxon England twelve centuries ago, and twelve of them made a shilling — twenty shillings made the pound. Britain stayed on that duodecimal system until 1971, when the currency finally went decimal.
The UK invented the gold standard, anchored world trade during the empire era, and then managed a long, orderly decline from it — including the 1992 Black Wednesday, when speculators forced the pound out of the European exchange-rate mechanism in a single day. That episode is why Britain never adopted the euro, and why the Bank of England's independence, granted in 1997, matters so much to the currency's credibility today.
What moves the GBP exchange rate
Sterling trades on monetary policy, real-economy data and politics — with politics punching above the weight other currencies are used to.
- Bank of England policy and UK inflation: rate expectations move sterling immediately
- Gilt yields and fiscal credibility: budgets that unsettle bond markets unsettle the pound too (see the mini-budget of September 2022)
- Political shocks: Brexit showed that structural news can re-rate the pound by double digits over a few years
- The London financial industry: the UK runs a structural surplus in financial services, which supports sterling demand
The Pound in practice
The UK is one of the easiest places to travel cash-light: contactless cards and phones work nearly everywhere, from London taxis to village pubs. Cash still helps at markets and some small cafés, and note that Scotland and Northern Ireland issue their own banknotes — perfectly legal, but sometimes refused back in England, so spend them before leaving.
For money moving between the UK and the EU, post-Brexit corridors no longer benefit from SEPA-like simplicity, so comparing providers genuinely pays. London remains the world's largest foreign-exchange trading hub — over a third of global FX volume is traded there.
Popular Pound conversions
GBP/USD is nicknamed cable, after the transatlantic telegraph cable that first carried its price between London and New York in the 1860s. EUR/GBP is the day-to-day pair for European trade and travel. GBP/JPY — the beast among traders — is one of the most volatile majors, and GBP/INR and GBP/AED serve some of the largest remittance corridors in the world.
Frequently asked questions
Why is it called sterling? And cable?
Sterling comes from the old silver pennies (easterlings); the currency's full name is pound sterling. Cable is the GBP/USD nickname from the 19th-century transatlantic telegraph cable that quoted the rate.
Will the UK ever join the euro?
There is no current political plan to adopt the euro. The 1992 ERM exit and the 2016 Brexit vote pushed the question off the agenda for the foreseeable future.
Are Scottish banknotes valid in England?
Yes — Scottish and Northern Ireland notes are legal currency across the UK, though some English shops are unfamiliar with them and refuse them. They exchange at par at any bank.