The Complete Guide of the British Pound in 2023
The British Pound: A Historical Journey
The British pound, officially known as the pound sterling, is one of the oldest currencies still in use today. Its rich history, spanning over 12 centuries, is intertwined with the economic, political, and social evolution of the United Kingdom. This article explores the fascinating journey of the British pound, from its origins to its current status as a key global currency.
Origins and Early Development
The origins of the pound can be traced back to around 775 AD, when "sterlings" or silver pennies were introduced into the Anglo-Saxon kingdoms. The word "pound" referred to a pound of sterling silver. The currency system was based on the Carolingian system, with 12 pence (denarius) in a shilling (solidus) and 20 shillings in a pound (libra) - a system that would remain in place for over a thousand years.
The pound gained official status with the creation of the Kingdom of England in the 10th century. During the reign of King Offa, the penny was minted from fine silver and became the principal currency. The gold noble was introduced in 1344, marking the beginning of a bimetallic system.
The Gold Standard
The British pound was linked to gold during the 18th and 19th centuries. Sir Isaac Newton, as Master of the Mint, effectively placed Britain on the gold standard in 1717 by establishing the relative values of gold and silver. The Coinage Act of 1816 officially adopted the gold standard, with the sovereign, worth one pound, as the main gold coin.
The gold standard provided stability, but it also tied the money supply to the supply of gold, limiting the government's ability to manage the economy. Britain temporarily left the gold standard during the Napoleonic Wars and the First World War, and permanently in 1931 during the Great Depression.
Decimalisation
Until 1971, the British pound was divided into 20 shillings, each of 12 pence, resulting in 240 pence to a pound. This system, while steeped in tradition, was complex and cumbersome. On 15 February 1971, known as Decimal Day, the UK decimalised the pound, with 100 new pence to a pound. The change was the result of years of planning and public education campaigns.
The Pound in the Modern Era
In the post-war period, the pound underwent several devaluations as the UK's economic power relative to other nations declined. The Bretton Woods system, established in 1944, fixed the pound to the US dollar, which was convertible to gold. However, economic pressures led to the collapse of the system in 1971, and currencies, including the pound, moved to a floating exchange rate.
The late 20th century saw debates about the UK's relationship with the European Union and the possibility of adopting the Euro. However, the UK decided to retain the pound, and it remains one of the few EU countries not to adopt the Euro.
Banknotes and Coins
The Bank of England, established in 1694, began issuing hand-written banknotes in exchange for deposits. The first fully printed notes appeared in 1853. Today, Bank of England notes are issued in denominations of £5, £10, £20, and £50.
The Royal Mint, responsible for producing coins, has introduced various coin denominations over the years. The current coinage system includes the £2 and £1 coins, and the 50, 20, 10, 5, 2, and 1 pence coins.
Conclusion
The history of the British pound reflects the economic and political changes thatthe UK has undergone over the centuries. From its origins as silver pennies in the Anglo-Saxon kingdoms, through the adoption of the gold standard, to decimalisation and the decision not to join the Eurozone, the pound has evolved in response to shifting economic realities and policy decisions.
Today, the pound sterling is one of the world's major currencies, reflecting the UK's significant role in the global economy. It is not only a medium of exchange but also a symbol of the nation's history and identity.
The future of the pound will continue to be shaped by economic conditions and policy decisions. As the UK navigates the post-Brexit era, the pound will undoubtedly remain a key barometer of the country's economic health and a central tool for monetary policy.
From its humble beginnings to its modern incarnation, the story of the British pound is a testament to the enduring nature of currency as a facilitator of trade and a store of value. As we move forward, the pound will continue to play a crucial role in the UK's economy and offer a fascinating lens through which to explore the country's history.
British Pound Banknotes
The British pound, officially known as the pound sterling, is the official currency of the United Kingdom, which includes England, Scotland, Wales, and Northern Ireland. It is also used in the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. The pound is symbolised by the £ sign, and its ISO code is GBP, which stands for "Great British Pound."
The pound is subdivided into 100 smaller units known as pence, symbolised by the letter 'p'. The Royal Mint produces the UK's coins in denominations of 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. The Bank of England, which is the UK's central bank, issues banknotes in denominations of £5, £10, £20, and £50.
Each banknote features the portrait of Queen Elizabeth II on the obverse. The reverse of each note features notable Britons or symbols of British heritage:
- The £5 note features Sir Winston Churchill, the UK's Prime Minister during World War II, along with the clock face of Big Ben.
- The £10 note features the renowned author Jane Austen.
- The £20 note features the artist JMW Turner, along with his painting "The Fighting Temeraire."
- The £50 note, the newest of the series released in June 2021, features mathematician and codebreaker Alan Turing.
Each note also incorporates a range of security features designed to prevent counterfeiting, including holograms, watermarks, and micro-lettering.
The pound sterling is one of the oldest currencies still in use today, with origins dating back over 1,200 years. It is also one of the most traded currencies in the foreign exchange market, reflecting the UK's significant role in the global economy. Despite discussions in the past about the UK adopting the Euro, the pound sterling remains the UK's official currency.
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The £5 note, often referred to as a "fiver," is the smallest denomination of banknote issued by the Bank of England.
Design and Features
The current design of the £5 note was introduced on 13 September 2016. It is the first Bank of England banknote to be made from a polymer, a thin and flexible plastic material, which is cleaner, safer, and more durable than paper.
The note is approximately 125mm x 65mm in size, making it smaller than the previous paper £5 note.
Obverse (Front)
The obverse of the £5 note features a portrait of Queen Elizabeth II, the current and longest-reigning monarch of the United Kingdom. The portrait is based on a photograph by Mark Lawrence and includes the coronation crown worn by the Queen at her coronation in 1953.
The obverse also features a depiction of the Queen's initials "E II R," the Royal Coat of Arms, and an image of the Elizabeth Tower (commonly known as Big Ben) with the clock showing three o'clock, the approximate time on 13 September 2016 when the Bank of England's Governor presented the new £5 note to the Queen.
Reverse (Back)
The reverse of the £5 note features a portrait of Sir Winston Churchill, one of the UK's most iconic prime ministers, who led the country during World War II. The portrait is based on a photograph taken by Yousuf Karsh on 30 December 1941.
The reverse also features a view of Westminster and the Elizabeth Tower from the South Bank looking across Westminster Bridge, the image of the Nobel Prize medal which Churchill was awarded in 1953 for literature, and a quote from Churchill: "I have nothing to offer but blood, toil, tears and sweat," which he said in his first speech as Prime Minister to the House of Commons on 13 May 1940.
Security Features
The £5 note includes several security features designed to prevent counterfeiting. These include:
- A see-through window featuring the Queen's portrait.
- A metallic image of the Elizabeth Tower which is gold on the front of the note and silver on the back.
- A hologram which changes from 'Five' to 'Pounds' when the note is tilted.
- A hologram of the coronation crown which appears 3D and multi-coloured when the note is tilted.
- Ultra-violet features, where the number '5' appears in bright red and green under ultra-violet light.
The £5 note, like all British banknotes, represents a significant technological achievement in banknote production and a symbol of the nation's history and identity.
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The £10 note, often referred to as a "tenner," is a denomination of the banknote issued by the Bank of England.
Design and Features
The current design of the £10 note was introduced on 14 September 2017. Like the £5 note, it is made from a polymer, a thin and flexible plastic material, which is cleaner, safer, and more durable than paper.
The note is approximately 132mm x 69mm in size, making it larger than the £5 note but smaller than the £20 and £50 notes.
Obverse (Front)
The obverse of the £10 note features a portrait of Queen Elizabeth II, the current and longest-reigning monarch of the United Kingdom. The portrait is based on a photograph by Mark Lawrence and includes the coronation crown worn by the Queen at her coronation in 1953.
The obverse also features a depiction of the Queen's initials "E II R," the Royal Coat of Arms, and an image of Winchester Cathedral in gold foil and a multicoloured rainbow effect.
Reverse (Back)
The reverse of the £10 note features a portrait of Jane Austen, one of the UK's most beloved authors, known for her novels such as "Pride and Prejudice" and "Emma." The portrait is based on a sketch by her sister Cassandra Austen.
The reverse also features a background image of Godmersham Park, home of Edward Austen Knight, Jane Austen's brother, and believed to be an inspiration for a number of her novels. There's also an image of Elizabeth Bennet, a character from "Pride and Prejudice," and a quote from the novel: "I declare after all there is no enjoyment like reading!"
Security Features
The £10 note includes several security features designed to prevent counterfeiting. These include:
- A see-through window featuring the Queen's portrait.
- A quill at the side of the window which changes from purple to orange.
- A hologram which contains the word 'Ten' and changes to 'Pounds' when the note is tilted.
- A hologram of the coronation crown which appears 3D and multi-coloured when the note is tilted.
- A book-shaped copper foil patch which contains the letters 'JA'.
- Ultra-violet features, where the number '10' appears in bright red and green under ultra-violet light.
The £10 note, like all British banknotes, represents a significant technological achievement in banknote production and a symbol of the nation's history and identity.
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The £20 note is a denomination of the banknote issued by the Bank of England.
Design and Features
The current design of the £20 note was introduced on 20 February 2020. Like the £5 and £10 notes, it is made from a polymer, a thin and flexible plastic material, which is cleaner, safer, and more durable than paper.
The note is approximately 139mm x 73mm in size, making it larger than the £5 and £10 notes but smaller than the £50 note.
Obverse (Front)
The obverse of the £20 note features a portrait of Queen Elizabeth II, the current and longest-reigning monarch of the United Kingdom. The portrait is based on a photograph by Mark Lawrence and includes the coronation crown worn by the Queen at her coronation in 1953.
The obverse also features a depiction of the Queen's initials "E II R," the Royal Coat of Arms, and an image of Margate lighthouse and Turner Contemporary in gold foil and a blue and gold foil patch.
Reverse (Back)
The reverse of the £20 note features a self-portrait of JMW Turner, one of the UK's most celebrated artists, known for his landscape and marine paintings. The self-portrait is based on a painting currently housed in Tate Britain.
The reverse also features a background image of The Fighting Temeraire, one of Turner's most famous paintings, which depicts the warship Temeraire being towed to be broken up. There's also a quote from Turner: "Light is therefore colour," and the signature of Turner from his will.
Security Features
The £20 note includes several security features designed to prevent counterfeiting. These include:
- A large see-through window with a blue and gold foil depicting Margate lighthouse and Turner Contemporary.
- A smaller see-through window in the bottom corner of the note, inspired by Tintern Abbey depicted in a watercolour by Turner.
- A metallic hologram which changes between the words 'Twenty' and 'Pounds' when the note is tilted.
- A purple foil patch containing the letter 'T' and based on the staircase at Tate Britain.
- Ultra-violet features, where the number '20' appears in bright green and red under ultra-violet light.
The £20 note, like all British banknotes, represents a significant technological achievement in banknote production and a symbol of the nation's history and identity.
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The £50 note is the highest denomination of banknote issued by the Bank of England.
Design and Features
The current design of the £50 note was introduced on 23 June 2021. Like the £5, £10, and £20 notes, it is made from a polymer, a thin and flexible plastic material, which is cleaner, safer, and more durable than paper.
The note is approximately 146mm x 77mm in size, making it the largest of the Bank of England banknotes in circulation.
Obverse (Front)
The obverse of the £50 note features a portrait of Queen Elizabeth II, the current and longest-reigning monarch of the United Kingdom. The portrait is based on a photograph by Mark Lawrence and includes the coronation crown worn by the Queen at her coronation in 1953.
The obverse also features a depiction of the Queen's initials "E II R," the Royal Coat of Arms, and a symbol representing GCHQ (Government Communications Headquarters) in gold foil.
Reverse (Back)
The reverse of the £50 note features portraits of Alan Turing, a pioneering mathematician, computer scientist, and theoretical biologist, who is best known for his work on breaking the German Enigma code during World War II. The portraits are based on a photograph taken by Elliott & Fry which is part of the Photographs Collection at the National Portrait Gallery.
The reverse also features a background image of technical drawings for the British Bombe, the machine specified by Turing and one of the primary tools used to break Enigma-enciphered messages during WWII. There's also a table and mathematical formulae from Turing’s seminal 1936 paper "On Computable Numbers, with an application to the Entscheidungsproblem" and ticker tape depicting Alan Turing’s birth date (23 June 1912) in binary code.
Security Features
The £50 note includes several security features designed to prevent counterfeiting. These include:
- A large see-through window with a gold and green image of the Elizabeth Tower.
- A smaller see-through window in the bottom corner of the note.
- A hologram which changes between the words 'Fifty' and 'Pounds' when the note is tilted.
- A silver foil patch containing a 3D image of the coronation crown.
- Ultra-violet features, where the number '50' appears in bright red and green under ultra-violet light.
The £50 note, like all British banknotes, represents a significant technological achievement in banknote production and a symbol of the nation's history and identity.