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Updated on June 19, 2024 , 1887 views

Defining GBP

GBP is one abbreviation that is used for the British Pound Sterling, which is the official currency of the British Overseas Territories of South Georgia, the United Kingdom, the South Sandwich Islands, and the British Antarctic Territory.


Zimbabwe’s African country also makes use of the pound. There are several other currencies that are attached to this British pound, such as Northern Ireland notes, Scotland notes, Max pounds, Guernsey pound (GGP), Jersey pound (JEP), Saint Helenian pound, Falkland Islands pound, and the Gibraltar pound.

History of the GBP

The British pound is the oldest currency across the globe that is currently being used as Legal Tender as it was created as the form of money back in

  1. However, it was in 1707 when Scotland and England united to create a single country when the British pound was regarded as the official currency of the UK.

It was in 1855 when England started printing British pound notes. Before this time, the Bank of England used to write every single note manually. Also, before World War I, the United Kingdom started using the gold standard to set the British pound’s value.

However, during the outbreak of WW1, this idea was abandoned and later reinstated in the post-war era in 1925. And later, during the Great Depression, the idea was abandoned yet again. Dating back in 1971, the UK allowed the British pound to Float freely in contradiction of other currencies.

This decision enables Market forces to comprehend the value of this current. In 2002, when the Euro was regarded as the common currency of a majority of European Union Member Nations, the United Kingdom didn’t choose it and kept the GBP as the official currency.

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Explaining the GBP

Across the world, the British pound, symbolled as £ is one of the highest trading currencies, followed by the US dollar, Euro and Japanese yen. Also, sometimes, British pound sterling is sometimes regarded as sterling or “quid”, which is its nickname.

Considering that stocks get traded in pence, which is the British term that refers to pennies, investors may look at stock prices listed as pence sterling, GBP or GBX. In the foreign exchange markets, the British pound accounts for approximately 13% of the daily trading volume.

The common currency pairs are the British pound and the Euro (EUR/GBP) and the US dollar (GBP/USD). Generally, GBP/USD is regarded as the cable by foreign-exchange traders.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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