Sterling
Sterling is a term used to refer to the official currency of the United Kingdom, the pound sterling. It is the fourth most traded currency in the world and is also the third most held reserve currency. The pound sterling is the oldest currency still in use today, having been in continuous use since its inception in the 8th century. It is also the official currency of the British Overseas Territories of the Isle of Man, Jersey, and Guernsey.
History of Sterling
The pound sterling was first introduced in the 8th century by King Offa of Mercia. It was based on the silver penny, which was the only coin in circulation at the time. The pound was divided into 240 pennies, and the value of the pound was set at the equivalent of one pound of silver. The pound sterling was adopted as the official currency of England in the 16th century, and it has remained the official currency of the United Kingdom ever since.
The pound sterling was originally pegged to the gold standard, but this was abandoned in 1931. Since then, the pound has been allowed to float freely against other currencies. The pound sterling is currently managed by the Bank of England, which sets interest rates and controls the money supply.
Comparison Table
| Currency | Symbol | Code |
|---|---|---|
| Pound Sterling | £ | GBP |
| US Dollar | $ | USD |
| Euro | € | EUR |
| Japanese Yen | ¥ | JPY |
Summary
The pound sterling is the official currency of the United Kingdom and is the fourth most traded currency in the world. It is also the oldest currency still in use today, having been in continuous use since its inception in the 8th century. The pound sterling is managed by the Bank of England, which sets interest rates and controls the money supply. For more information about the pound sterling, visit the Bank of England website or the UK government website.
See Also
- Currency
- Exchange Rate
- Money Supply
- Interest Rate
- Bank of England
- Pound Coin
- Pound Note
- Gold Standard
- British Overseas Territories
- Isle of Man
