Currency of United Kingdom

The currency of the United Kingdom is Pound Sterling; its ISO code is GBP. The pound sterling, more commonly known as the pound, is not only the official currency of the United Kingdom but also of a few other European lands. It has further subdivisions of 100 pence. The full name of the currency, pound sterling, is only used for formal mentions or to distinguish it from other currencies of the same name; it is also called quid in slang terms. It is the fourth most traded currency in foreign exchange market; it is also the third most held reserve currency in the global reserves. Together with three other currencies its forms the basket of currencies which calculate the value of IMF special drawing rights.

The pound was first used as a unit of accounting in the Anglo-Saxon England; it was equal to 240 silver pennies and hence, one pound weight of silver. This became its evolution process of turning into the British pound sterling, as penny became the standard coin throughout the Anglo-Saxon kingdoms which formed the modern day England. The pennies went through the period of being made from silver coins, to gold coins, reducing in weight and quantity of pure metal, over the years; until finally in 1694, the Bank of England was formed, after the Bank of Scotland and paper money started to be issued.