British Pound Sterling (GBP)
£ · Official currency of United Kingdom
GBP at a glance
Every fact on this page is drawn from Bank of England or another primary source — see the 12 sources cited below.
| Currency | British Pound Sterling |
|---|---|
| ISO 4217 code | GBP · number 826 |
| Symbol | £ |
| Minor unit | 1 GBP = 100 penny |
| Used in | 4 countries & territories |
| Pegged to | Not pegged |
| Central bank | Bank of England |
| Official rates | Bank of England → |
| Introduced | 1066 |
Where the British Pound Sterling is used
- Guernsey
- Isle Of Man
- Jersey
- United Kingdom Of Great Britain And Northern Ireland (The)
Exchange rate regime Free float
Sterling has floated freely since the United Kingdom left the European Exchange Rate Mechanism on 16 September 1992. The Bank of England targets 2% inflation, set by the Government, and does not target an exchange rate.
About the British Pound Sterling
The British Pound Sterling (GBP) is the official currency of the United Kingdom, issued by the Bank of England and denoted by the symbol £; one pound is divided into 100 pence. Sterling also serves the Crown Dependencies of Guernsey, Jersey and the Isle of Man, which ISO 4217 lists under GBP, numeric code 826, alongside the United Kingdom.
Sterling has floated freely since 16 September 1992, when the United Kingdom withdrew from the European Exchange Rate Mechanism after intervention failed to keep the pound inside its band. Monetary policy switched to inflation targeting that October. The Bank of England's nine-member Monetary Policy Committee sets Bank Rate eight times a year to meet the 2% inflation target set by the Government; the exchange rate itself is left to the market.
Silver pennies had circulated in England since as early as the seventh century, but the Royal Mint Museum dates the pound as a fixed unit of 240 consistent-weight pence specifically to the silver pennies of William I (1066–87). The first £1 coin, a gold sovereign, was struck in 1489 under Henry VII. On Decimal Day, 15 February 1971, the pounds-shillings-pence system was replaced and the pound was divided into 100 new pence.
Sterling remains a first-tier international currency. In the Bank for International Settlements' Triennial Survey of April 2025, it was on one side of 10.2% of global foreign exchange turnover, which averaged USD 9.6 trillion per day, ranking fourth behind the US dollar, euro and yen. In the IMF's COFER data for the first quarter of 2026, sterling made up 4.4% of the world's official foreign exchange reserves, again the fourth-largest share.
The Bank of England issues four banknote denominations — £5, £10, £20 and £50 — featuring Sir Winston Churchill, Jane Austen, J.M.W. Turner and Alan Turing respectively. Notes bearing King Charles III's portrait entered circulation on 5 June 2024 and co-circulate with Queen Elizabeth II notes, which remain legal tender. The Royal Mint issues eight circulating coin denominations from 1p to £2, including the seven-sided 50p and the 12-sided £1 introduced in 2017.
GBP coins & banknotes
- 1p
- 2p
- 5p
- 10p
- 20p
- 50p
- £1
- £2
- £5
- £10
- £20
- £50
GBP quick facts
- Numismatist Philip Grierson traced 'sterling' to the Middle English 'ster' (strong, fixed) — a nod to William I's unusually consistent silver penny.
- In the pre-decimal £sd system, s and d abbreviated the Latin solidus and denarius; the Royal Mint Museum dates their English use as currency symbols to 1387.
- 'Shilling' derives from the Old English 'scilling', meaning a cutting or slice, from the early practice of paying with cut pieces of gold or silver armlets.
- On Decimal Day, the Royal Mint redenominated the pre-decimal one-shilling coin as the 5p and the two-shilling coin as the 10p.
- All four Bank of England banknote denominations in circulation — £5, £10, £20 and £50 — are printed on polymer, not paper.
GBP frequently asked questions
Is the British pound pegged to another currency?
No. The pound has been a free-floating currency since the United Kingdom left the European Exchange Rate Mechanism on 16 September 1992. Rather than managing the exchange rate, the Bank of England's Monetary Policy Committee sets Bank Rate to meet the Government's 2% inflation target, so the pound's value against other currencies is determined by the foreign exchange market.
Which countries use the British pound?
The pound sterling is the official currency of the United Kingdom of Great Britain and Northern Ireland. ISO 4217 also lists GBP as the currency of the Crown Dependencies of Guernsey, Jersey and the Isle of Man. Several British Overseas Territories, such as Gibraltar, the Falkland Islands and Saint Helena, are listed with pound currencies of their own (GIP, FKP, SHP) rather than GBP.
What is the symbol for the British pound?
The pound sign £ is the symbol for sterling. It developed from the letter L, the initial of the Latin word libra, a pound of money, with a horizontal stroke marking the abbreviation. A cheque dated 7 January 1661 held in the Bank of England Museum shows a clearly discernible £ sign, and by the Bank's foundation in 1694 the symbol was in common use.
Who issues British pound banknotes and coins?
The Bank of England, the UK's central bank, is the sole banknote issuer for England and Wales, and its £5, £10, £20 and £50 notes circulate throughout the United Kingdom. Three commercial banks in Scotland and three in Northern Ireland are also authorised to issue their own sterling banknotes, backed by assets worth at least the notes in circulation. UK coins are made and issued by the Royal Mint.
Explore GBP
Facts on this page are sourced from Bank of England and other primary references (12 sources). Rates are mid-market and for information only.
Sources for this GBP profile
12 primary sources behind the facts above, each listed with the sections of this page it is cited for. Links open on the publisher's own site.
- Open Exchange Rates openexchangerates.org/api/currencies.json Cited for: Name
- Bank of England www.bankofengland.co.uk/monetary-policy Cited for: Exchange rate regime · FAQ · About
- Bank of England www.bankofengland.co.uk/about/history Cited for: Exchange rate regime · FAQ · About
- Bank of England www.bankofengland.co.uk/banknotes/current-banknotes Cited for: Coins & banknotes · Quick facts · About
- The Royal Mint www.royalmint.com/discover/uk-coins/coin-design-and-specifications/ Cited for: Coins & banknotes · Quick facts · About
- Royal Mint Museum www.royalmintmuseum.org.uk/journal/history/pounds-shillings-and-pence/ Cited for: Introduced · Quick facts · FAQ · About
- The Royal Mint www.royalmint.com/discover/decimalisation/ Cited for: Introduced · About
- SIX Financial Information (ISO 4217 maintenance agency) www.six-group.com/dam/download/financial-information/data-center/iso-currrency/lists/list-one.xml Cited for: Where it is used · FAQ · About
- Cambridge Dictionary dictionary.cambridge.org/dictionary/english/quid Cited for: Nicknames
- Bank of England www.bankofengland.co.uk/banknotes/scottish-and-northern-ireland-banknotes Cited for: FAQ
- Bank for International Settlements www.bis.org/press/p250930.htm Cited for: About
- International Monetary Fund api.imf.org/external/sdmx/2.1/data/IMF.STA,COFER/G001.AFXRA.CI_GBP.SHRO_PT.Q?startPeriod=2025 Cited for: About