British Pound

Overview

Economy

• United Kingdom is a member of G7, G20, NATO, Commonwealth, OECD, WTO.
• Main industries include: Financial services, Manufacturing, Services, Technology, Creative industries, Aerospace, Pharmaceuticals, Energy, Agriculture.
• United Kingdom is part of the World Trade Organization.
• Imports are machinery, fuel, food, consumer goods, raw materials, chemicals, transport equipment.
• Major exports include financial services, machinery, chemicals, pharmaceuticals, vehicles, precious metals, aircraft, textiles.
• GDP: $3.13 trillion (2023, nominal).
• GDP per capita: $46,344 (2023).
• Unemployment rate: 4.2% (2024).
• Inflation rate: 4.0% (2024), Target: 2%.
• Main trading partners: United States, Germany, China, Netherlands, France, Ireland, Belgium.
• Trade agreements: UK-EU Trade and Cooperation Agreement, CPTPP (applied), UK-Australia FTA, UK-New Zealand FTA, Various bilateral agreements.

History

• Previous currencies used: Anglo-Saxon silver penny, Various medieval currencies.
• Sterling originated from the silver penny used in Anglo-Saxon kingdoms. The pound sterling has been the currency of England since the 12th century and became one of the world's most important currencies during the British Empire.
• 775 AD: Silver penny introduced
• 1158: Pound sterling established
• 1694: Bank of England founded
• 1816: Gold standard adopted
• 1931: Left gold standard
• 1971: Decimalization (240 pence to 100 new pence)
• 1992: Black Wednesday - forced exit from ERM
• 2016: Brexit referendum impacts currency
• 2020: Brexit implementation affects trade
• Exchange rate peg: Gold standard (1816-1931).
• Exchange rate peg: Bretton Woods (1944-1971).
• Exchange rate peg: ERM briefly (1990-1992).
• Exchange rate peg: Free floating (1992-present).

General Information

• ISO 4217 Code: GBP
• Symbols: GBP/£
• Currency Subunits: 100 pence
• Central Bank: Bank of England
• Monetary Policy: Inflation targeting with 2% target. Primary tools include Bank Rate, quantitative easing, forward guidance, and Term Funding Scheme.
• Bills: £5, £10, £20, £50
• Coins: 1p, 2p, 5p, 10p, 20p, 50p, £1, £2
• USD Exchange Rate: Variable (approximately 1.26-1.30 GBP per USD)
• Pegged To: None (Floating)
• Capital: London
• Population: 67,736,802 (2023 est.)
• Area: 243,610 km²
• Languages: English, Welsh, Scottish Gaelic, Irish
• Time Zones: UTC+0 (GMT), UTC+1 (BST in summer)
• Government Type: Constitutional monarchy and parliamentary democracy
• Head of Government: Prime Minister (head of government), Monarch (head of state)
• Independence: Evolved over centuries from various kingdoms
• Ethnic Groups: White British 81%, Asian British 9%, Black British 3%, Mixed 2%, Other 5%
• Religions: Christianity 46%, No religion 37%, Islam 6%, Hinduism 2%, Sikhism 1%, Judaism 0.5%, Buddhism 0.5%, Other 7%
• Literacy Rate: 99%
• Transport: Extensive rail network, motorways, major airports (Heathrow, Gatwick, Manchester), major ports (Felixstowe, Southampton, London)
• Communications: Advanced telecommunications, 96% internet penetration, widespread 5G coverage
• Energy: Natural gas 39%, Renewables 26%, Nuclear 16%, Coal 2%, Oil 1%, Other 16%
• Countries Using This Currency: United Kingdom
• Data Sources: Central Bank: Bank of England (bankofengland.co.uk), Economic Data: ONS, HM Treasury, World Bank, IMF, Trade Data: ONS, WTO, Demographic Data: ONS, UK Census, Geographic Data: ONS, CIA World Factbook, Historical Data: Bank of England archives, National Archives
• Last Updated: 2025