How many pence are in a pound now. English money: description and photo

"His salary was ten shillings a week, and the family barely made ends meet."
"With a few pence he bought some bread and cheese and had breakfast."
"If you deliver this letter to the address, you will receive a guinea."

“What is the difference between a pound and a guinea, and how do they relate to crowns, pence and shillings?” - a question arises for any modern reader.

To date, most countries have adopted a decimal monetary system: there is a basic monetary unit, which is equal to a hundred small units. Great Britain switched to the decimal system only in the second half of the twentieth century. The main currency was the pound sterling, the bargaining chip was the penny. From the time of King Charlemagne until recently, there was such confusion in the monetary system that, perhaps, only the British themselves, who were distinguished by accuracy and pedantry in everything, could figure it out.

Let's try and figure it out.

Until 1971, the ratios between monetary units looked like this:

One pound was thus 4 crowns, or 8 half-crowns, or 10 florins, or 20 shillings, or 240 pence, or 960 farthings.

The pound sterling has been the main monetary unit of England since 1694, when the issue of the corresponding banknotes began. However, the word itself appeared much earlier, back in the 12th century. And it meant, oddly enough ... a pound sterling! Sterling was a small silver coin, so small that it was sometimes considered worth its weight.

The sovereign is a gold coin minted since 1489 and equal to 20 shillings. As you can easily see, the sovereign was a coin that corresponded to the paper pound sterling.

Guinea is a gold coin that was first minted in 1663 from gold brought from Guinea. It was valued a little more than a pound and a sovereign. Until recently, if an amount of 21 shillings appeared somewhere in financial calculations, it was automatically renamed into a guinea.

A penny is a small coin that originated in the 8th century. It was first minted from silver, with late XVIII century - from copper, and from the second half of the XIX century - from bronze.

In 1849 an attempt was made to bring the monetary system of England to decimal. Then came the florin, equal to one-tenth of a pound. However, nothing has changed, except that another type of coins appeared in the country, which went along with the traditional shillings and crowns.

The inhabitants of Great Britain themselves were not confused in this complex system. On the contrary, there was a certain peculiar convenience in it - the nobility carried out calculations in pounds and guineas and never once held a farthing in their hands, and the poor did not see anything larger than pence and shillings.

In 1966, the British government thought about monetary reform. But to carry out the reform quickly meant to destroy the centuries-old habitual way of English life. Therefore, only 3 years later, in 1969, a 50 pence coin was presented to the inhabitants of Great Britain - the first step towards the decimal system. In 1971, the country officially switched to the decimal system, but until 1982, old and new coins went in parallel. New, "decimal", pence could be distinguished by the inscription "New penny".

In modern English language the word pound is used to denote the amount of money (for example, This car costs 10,000 pounds), and the word sterling is used to distinguish the British currency from the currencies of other countries (The dealer bought sterling and sold US dollars). In colloquial language, the word quid can be used to refer to the same pound sterling.

The English currency is called the pound sterling, one unit of which contains 100 pence. In the singular they are called penalties. Despite the fact that the pounds sterling is inferior to the dollar and the euro, they make up a third of the world's foreign exchange reserves. were able to maintain their independence from the European Union when the country refused to switch to another currency and left the national one.

Creation of the English currency

The history of its creation goes back to King Offa of Mercia, who ruled in East Anglia. It was this monarch who first introduced the silver penny into circulation, which immediately became widespread. After 12 centuries, official coins began to be minted in Britain. They were also made of pure silver. Then came the pounds sterling.

origin of name

Since then, English money has been called so. In this language, sterling means "good sample, clean." The second component of the name of the currency was the measure from which the coins were minted. The result is the pound sterling (singular). This name is used for official distinction from similar sounding currencies. IN Everyday life English money sounds simpler - sterling or pound.

Unusual history of currency

This is the oldest currency that still exists in world circulation. The first money in England appeared along with money changers. They were master jewelers. They kept precious metals and products from them brought by other people. Receipts were issued for things, which began to be considered the first paper money.

Later they began to be produced in large quantities, but were backed by a minimum of gold. Loans began to be issued. Interest was paid for the use of money. Moreover, the amounts of loans were much larger than the assets available. King Henry I decided to fight the swindlers.

He took away the right to issue money from jewelers and created a system of measuring rails, which lasted until 1826. The denomination was indicated by notches. The rail was split along them and put into circulation. One part remained with the monarch, as proof of the authenticity of a kind of currency.

After Queen Mary came to power, minted English money from gold and silver began to be hidden. The result was an economic recession. When Elizabeth I came to power, the issue of money was already completely controlled. Coins began to be minted only in the royal treasury.

Gold coins were rare and were equal to 20 silver. Over time, other denominations appeared, which began to be called:

• crown;
• penny;
• sovereign;
• guinea.

Much more gold began to be minted, but the value of such money decreased accordingly. Over time, coins made of metal, copper and tin came into circulation. In 1660, the coinage changed, and forged ones were issued for the first time. In 1937, nickel-brass coins appeared, in 1947 - cupronickel coins.

Decimal Pound System

In February 1971, a decimal system was introduced to simplify calculations. The government replaced pennies and shillings with one coin. One pound became equal to 100 pence. This demarcated the old and new coinage. In 1969, the former began to be withdrawn from circulation.

The first coins of the decimal system were made from cupronickel. In 1971, the minting of money from bronze began. Over time, it was replaced with copper-plated steel. Modern coins appeared in 1998. Of the old samples, only copper ones remained. At that time, the pound sterling to the ruble was 1:24.6966. This value changes every year.

Description and banknotes

What money is in the UK now? The decimal system is still in effect. The official currency of the country is the pound sterling. In everyday life there are bills and coins in denominations (in pence):

There are in use money for 1 and 2 pounds. Elizabeth II is depicted on the coins, along the edges of the money there is a letter engraving. On reverse side minted:

• abbey grate;
• thistle;
• Tudor rose;
• coat of arms of the Prince of Wales;
• symbol of the British Isles;
• leek.

Crowns are still in circulation and are considered legal money. The first banknotes were issued by the Bank of England in 1964. They have the following denominations:

All depict Elizabeth II. On the reverse side, prominent figures from the history of the country are drawn.

Rate

The British currency is one of the most expensive in the world. The pound sterling against the ruble stood at 1:95.3. This is the data of the Central Bank of Russia. Despite the fact that the British currency is weakening somewhat, the demand for pounds remains the same. The pound sterling exchange rate in relation to other currencies remains practically stable. To the euro - 1:1.239, to the US dollar - 1:1.413, to the Swiss franc - 1:1.348.

GBP(symbol £; bank code: GBP) is subdivided into 100 pence (singular: penny) and is the currency of the United Kingdom, the Crown dependencies (Isle of Man and the Channel Islands) and the British Outer Territories of South Georgia Island and the South Sandwich Islands, British Atlantic and Indian Ocean Territory.

This article talks about the history of the pound sterling and its issuance in England, Great Britain and the United Kingdom. See also Manx pound, Jersey pound and Guernsey pound for more information. The Gibraltar Pound, the Falkland Islands Pound and the Saint Helena Pound are independent currencies that adhere to the Pound Sterling.

Currently, the pound sterling is the third largest part of the world's foreign exchange reserves, behind the US dollar and the euro. The pound of strelings is the fourth of the foreign exchange currencies currency markets after the US dollar, euro and Japanese yen.

Name

Full official name GBP(plural: pounds sterling) is used mainly in a formal context, and also when it is necessary to designate a currency used within the United Kingdom, as opposed to currencies of the same name. In other cases, the word is usually used lb.. The name of the currency is sometimes shortened to the word "sterling", especially on wholesale financial markets, but not in the sum name; so, they say "payment is accepted in sterling", but never "it costs five sterling". Sometimes the abbreviations "ster" or "stg" are used. Term British pound widely used in less formal contexts despite not being official name currencies. common slang name quid(plural quid).

The appearance of the term sterling dates back to 775, when silver coins called "sterlings" were issued in the Saxon states. 240 coins were minted from one pound of silver, which was approximately equal to the weight of a troy pound. For this reason, large payments began to be made in "pounds of silver coins, sterling." This phrase was later shortened to "pounds sterling". After the conquest of England by the Normans, to simplify calculations, the pound was divided into 20 shillings and 240 pence. For a detailed etymology of the word "sterling", see the section 925 silver.

Currency sign - pound sign, originally with two crossbars ₤ , later the sign with one cross line became more common £ . The pound sign comes from the old letter "L", which stands for the abbreviation LSD - librae, solidi, denarii- which corresponds to pounds, shillings and pence in the original duodecimal monetary system. Libra was the original unit of weight in Rome, the word comes from Latin and means "scales" or "balance". Bank currency code in the International Organization for Standardization 4217 - GBP (Great Britain pound). The abbreviation UKP is sometimes used, but it is incorrect. The Crown Dependencies use their own code: GGP (Guernsey Pound), JEP (Jersey Pound), and IMP (Isle of Man Pound). Stocks are often traded in pence, so traders can refer to pennies, GBX (sometimes GBp) when recording a stock's price.

Division and other units

Decimal system

Since the transition to the decimal system in 1971, the pound sterling has been divided into 100 pence (until 1981 it was designated on metallic money as the "new pence") The penny symbol is "p"; hence an amount like 50p (£0.50) is usually pronounced "50p" rather than "50p". It also helped distinguish between new and old pence during the transition to the decimal system.

Predecimal system

Before the change to the decimal system, the pound was divided into 20 shillings, and each shilling consisted of 12 pence, which was 240 pence in a pound. "s" - this was the sign of the shilling. This is not the first letter of the word shilling, but the beginning of the Latin word solidus ( solid ) . The symbol for the penny was the letter "d", from the French denier (denier), which comes from the Latin word denarius(denarius) (solidus and denarius were ancient Roman coins). A mixed sum of shillings and pence, such as 3 shillings and 6 pence, was denoted as "3/6" or "3s 6d" and pronounced "three and six". 5 shillings was written as "5s" or, more commonly, "5/-".

Coins of different denominations had and continue to have certain names, such as "crown", "farthing/grosz", "sovereign" and "guinea". Details can be found in the sections "Coins of the pound sterling" and "List of British coins and notes".

Story

After the adoption of the euro, sterling became the oldest currency in the world still in circulation.

Anglo-Saxons

The origin of sterling goes back to the reign of King Off of Mercia, who introduced the silver penny. It was like the denarius in the new currency system of Charlemagne's empire. As in the Carolingian currency system, 240 pence weighed one pound (in accordance with Charlemagne's pound), a shilling corresponded to Charlemagne's shilling and was equal to 12 denarii. At the time the penny was introduced, it weighed 22.5 troy grains of pure silver (30 tower grains; about 1.5 grams), indicating that the Mercian pound weighed 5,400 troy grains (the Mercian pound became the basis for the tower pound, which weighed 5,400 troy grains, which was 7,200 tower grains). At this time, the name sterling was not yet in use. The penny quickly spread among other Anglo-Saxon states and became the standard coin of the state that later became England.

Middle Ages

Early pennies were minted in the finest silver (as pure as possible). However, in 1158, King Henry II (who was called Tilby penny) introduced a new coinage system. Coins were now minted from .925 silver (92.5%). Such silver became and continues to be the standard in the 20th century and today is called mint silver, in association with currency. Coin silver is heavier than the pure silver (i.e. 0.999/99.9% pure, etc.) that was used in the past, and therefore coins made from such silver did not wear out as quickly as coins made from pure silver. The English currency was made exclusively from silver until 1344, when noble gold was successfully introduced into circulation. However, silver remained the legal material for sterling until 1816. During the reign of Henry IV (1412-1421), the weight of a penny dropped to 15 grains of silver, and in 1464 the penny weighed 12 grains.

Tudor rule

During the reigns of Henry VIII and Edward VI, the minting of silver coins was sharply reduced, although in 1526 the pound was again equal to the troy pound of 5760 grains. In 1544, silver coins were issued containing only one third silver and two thirds copper, which equals .333 fine silver or 33.3% pure silver. As a result, the coins appeared to be copper, but relatively pale in color. In 1552, a new minting of 925 silver coins was introduced. However, the weight of the penny was reduced to 8 grains, meaning that 1 troy pound of 925 silver could produce 60 shilling coins. Standard silver was considered the "60 tishilling standard", which continued until 1601, when the "62 shilling standard" appeared, which reduced the weight of the penny to 7 grains. During this time, the size and value of gold coins changed significantly.

Accession of Scotland

In 1603, England and Scotland were united, but each state had its own governments and currencies. The Scottish pound equaled the sterling, but experienced a much stronger devaluation, 12 Scots pounds equaled one pound sterling. In 1707, after the unification of the two kingdoms and the formation of Great Britain, the Scottish pound was replaced by a sterling of the same value.

Unofficial gold standard

In 1663, a new minting of gold coins was introduced, based on the 22-carat guinea. With a fixed weight of 44½ in relation to the troy pound from 1670, this value of coins varied until 1717, when it was fixed at 21 shillings (21/-, 1.05 pounds). However, despite the efforts of Sir Isaac Newton, Keeper of the Mint, to reduce the value of the guinea, this raised the value of gold relative to silver relative to other European countries. British merchants sent silver as payment abroad, while goods for export were paid for in gold. Subsequently, there was a flow of silver out of the country and a flow of gold into the country, which led to the establishment of the gold standard in Great Britain. In addition to this, there was a chronic shortage of silver coins.

Establishment of modern currency

The Bank of England was formed in 1694, followed a year later by the Bank of Scotland. Both banks began issuing paper money, with the Bank of England becoming more important after 1707. During the Revolutionary War and the Napoleonic Wars, Bank of England notes were legal tender and fluctuated in value against gold. The bank also issued silver tokens to alleviate the shortage of silver coins.

gold standard

In 1816, the gold standard was officially adopted, while the silver standard was reduced to 66 shillings (66/-, 2.3 pounds), replacing silver coins with tokens (i.e., reducing the value of the precious metal). In 1817 the sovereign was introduced. The coins were minted in 22 carat gold and contained 113 grains of gold, they replaced the guinea and became standard British gold coins without changing the gold standard. In 1825, the Irish pound, which since 1701 had been equal to sterling at a rate of 13 Irish pounds = 12 pounds sterling, was replaced by sterling at the same rate.

During the 19th and early 20th centuries, the gold standard was adopted in many other countries. As a result, the rates of various currencies could be determined simply by their respective gold standards. The pound sterling was equal to 4.886 US dollars, 25.22 French francs (or equivalent currencies in the Latin Monetary Union), 20.43 German marks or 24.02 Austro-Hungarian crowns. After the International Monetary Conference in Paris, the possibility of the United Kingdom joining the Latin Monetary Union was discussed, and the Royal Commission on the International Monetary System, having considered this possibility, decided against joining.

The gold standard was suspended at the start of the war when the Bank of England and Treasury notes became legal tender. Prior to World War I, the United Kingdom's economy was one of the most advanced in the world, including 40% of foreign investment. However, by the end of the war, the country owed £850 million, mostly to the United States, at an interest costing the country 40% of all government spending. In an attempt to regain stability, a variation on the gold standard was introduced in 1925 in which the currency was equal to the pre-war value of gold, although the currency could only be exchanged for a bar of gold and not for coins. This was abandoned on September 21, 1931, during the Great Depression, and sterling underwent an initial devaluation of 25%.

Use in the empire

Sterling was used in most of the British Empire. In some parts, it was used alongside the local currency. For example, the gold sovereign was legal tender in Canada despite the existence of the Canadian dollar. Several colonies and dominions adopted the pound as their own currency. Australian, British West African, Cypriot, Fijian, Irish, Jamaican, New Zealand, South African and South Rhodesian pounds appeared. Some of these pounds have maintained parity with the pound sterling throughout their existence (such as the South African pound), while others have lost their independence after the end of the gold standard (such as the Australian pound). These currencies and others associated with sterling made up the sterling area.

Bretton Woods agreement on a post-war monetary system

In 1940, an agreement signed with the US equalized the pound with the US dollar at £1 = $4.03. This rate was maintained throughout World War II and became part of the Bretton Woods system that governed post-war exchange rates. Under constant economic pressure, and despite months of assurances to the contrary, the government nevertheless lowered the value of the pound by 30.5% to $2.80 on September 19, 1949. This move caused other currencies to depreciate against the dollar.

In the mid-1960s, the pound came under renewed pressure as the exchange rate against the dollar was considered too high. In the summer of 1966, with the depreciation of the pound in the currency markets, the Wilson government stepped up currency control. Among the measures taken was a ban on tourists taking more than 50 pounds out of the country, in 1979 the amount was increased. The pound was ultimately reduced by 14.3% to $2.40 on November 18, 1967.

Changeover to decimal system

On February 15, 1971, the United Kingdom switched to the decimal system, replacing the shilling and the penny with a single coin, the new penny. The word "new" fell out of use after 1981.

Changes in the value of the pound

With the fall of the Bretton Woods system - not least played by British currency dealers who created a strong market for the Eurodollar, making it difficult for the government to maintain the gold standard of the US dollar - the pound fluctuated in the early 1970s and therefore caused the exchange rate to rise in the market. The sterling area came to an end at this time, with most of its members also opting for a free currency against the pound and the dollar.

Another crisis followed in 1976 when it became known that the International Monetary Fund (IMF) thought the pound should be equal to $1.50 and as a result the pound fell to $1.57 and the government decided to borrow 2.3 billion pounds from the IMF. In the early 1980s, the pound advanced to $2 as interest rates rose in response to monetary policy, and a high exchange rate was blamed for a deep recession in 1981. The pound reached its lowest point in February 1985 at $1.05 before rising to $2 in the early 1990s.

Following the Deutsche Mark

In 1988, Margaret Thatcher's finance minister, Nigel Lawson, felt that the pound should "obscure" the West German mark, which would inadvertently lead to skyrocketing inflation as the economy boomed due to disproportionately low interest rates. (For ideological reasons, the Conservative government abandoned alternative mechanisms to control the explosion of credit flows; former Prime Minister Edward Heath called Lawson a "one-club golfer."

Following the European currency unit

On October 8, 1990, the Conservative government decided to join the European Exchange Rate Mechanism (ERM), with a pound equal to DM 2.95. However, the country was forced to exit the system on Black Wednesday (September 16, 1992) as the British economy led to exchange rate volatility. Stock exchange dealer George Soros became famous for making about $1 billion from the depreciation of the pound.

On Black Wednesday, interest rates jumped from 10% to 15% with failed attempt stop the fall of the pound below the level of European exchange rates. The exchange rate fell to DM 2.20. Pound/DM depreciation supporters gained support as the low pound supported export trade and contributed to the economic prosperity of the 1990s. Since the beginning of 2005, the pound/euro has reverted to an average of around £1.00:€1.46, equivalent to DM 2.85.

Following inflation targets

In 1997, the newly elected Labor government transferred the responsibility for daily monitoring of interest rates to the Bank of England (a policy originally pursued by the Liberal Democrats). The Bank is now responsible for setting its base interest rate in order to keep inflation at the level of the index consumer prices very close to 2%. As soon as CPI inflation is one percent above or below the target rate, the Governor of the Bank of England should write an open letter addressed to the Secretary of the Treasury explaining the reasons for such changes and outlining the measures that will be taken to restore the inflation rate back to the 2% norm. On April 17, 2007, the consumer price index inflation rate was 3.1% (retail price index inflation was 4.8%). Thus, for the first time, the Governor of the Bank had to publicly explain to the government why the inflation rate was one percent above the norm.

Euro

As a member of the European Union, the United Kingdom can accept the euro as its currency. However, the issue remains politically contentious, in no small part because the UK was forced to abandon its previous European exchange rate mechanism (see above) by entering a system with an incorrectly fixed exchange rate. Prime Minister Gordon Brown ruled out the adoption of the euro for the foreseeable future while still Treasury Secretary, saying the non-alignment decision was the right one for Britain and Europe.

The government of former Prime Minister Tony Blair has promised to hold an open referendum to decide on accession and to conduct "five economic tests" to ensure that the adoption of the euro will be of national interest. In addition to this internal (national) criterion, the United Kingdom had to accept the economic terms of EU convergence (Maastricht terms) before the adoption of the euro was allowed. The United Kingdom's annual government GDP deficit is currently above a certain threshold. In February 2005, 55% of the population of the United Kingdom was against the adoption of the euro, while 30% were in favor. The idea of ​​replacing the pound with the euro was controversial in British society because of the association of the pound with British sovereignty and because it, according to some critics, could lead to sub-optimal interest rates, which would hurt the British economy.

The pound was not included in the second European Exchange Rate Mechanism (ERM II) after the introduction of the euro. Denmark and the United Kingdom are countries that have abandoned the adoption of the euro. Formally, all other EU members must adopt the euro; however, this can be delayed indefinitely (as in the case of Sweden) by a refusal to join the second European exchange rate mechanism. The Conservative Party in Scotland claims that in Scotland they believe that the adoption of the euro means the end of the existence of territorially significant denominations, since the European Central Bank does not allow the existence of national or subnational types of denominations.

The Scottish Nationalist Party does not see this as a significant problem, since an independent Scotland would have its own national coins, and the party is pursuing a policy of introducing a single currency. On January 1, 2008, Akrotiri and Dhekelia, two territories on the island of Cyprus under British sovereignty, began using the euro (along with the rest of the Republic of Cyprus).

Current influence

Although the pound and the euro are independent of each other, it happens that they have been used together for a long time, but since mid-2006 this relationship has weakened. Inflationary concerns in the United Kingdom prompted the Bank of England to raise interest rates sharply in late 2006 and throughout 2007, resulting in the largest appreciation of the sterling against the euro since January 2003. This set off a knock-on effect against other major currencies, with the pound reaching its highest value in 15 years against the US dollar on April 18, 2007, having crossed the US$2 mark the day before for the first time since 1992. Since that time, the pound has continued to strengthen its position against the dollar, like many other world currencies, and on November 7, 2007 reached the level of $2.11610 for the first time in 26 years. However, since the end of 2007, the pound began to depreciate significantly against the euro, although not as sharply as the dollar, which fell below €1.25 for the first time in April 2008.

coins

Predecimal system

The silver penny was the main and often the only coin in circulation from the 8th to the 13th century. Although smaller coins than pennies (see farthing and halfpennies) were minted, cut half and quarter pennies were more common as tokens. Little gold coins were minted, the gold penny (worth 20 silver pennies) was rare. However, in 1279 a 4 pence silver coin appeared, and a half-value coin followed in 1344. In 1344, the minting of gold coins was also established, with the introduction (after the gold florin had not come into use) of a noble worth 6 shillings 8 pence, along with a half and a quarter of a noble. The reforms of 1464 marked a decrease in the value of coins, both silver and gold, and the noble was renamed rayol and was valued at 10 silver shillings, and the angel coin was equated to 6 shillings 8 pence.

The reign of Henry VII saw the introduction of two important coins, the shilling (known as the teston) in 1487 and the pound (known as the sovereign) in 1489. In 1526, several new denominations of gold coins were added, including the crown and half-crown, valued at 5 shillings and 2 shillings 6d. The reign of Henry VIII (1509-1547) saw a significant decline in the value of coins, which continued during the reign of Edward VI (1547-1553). However, this decline was halted in 1552 and new silver coinage was introduced, including coins for 1, 2, 3, 4 and 6d, 1shilling, 2s 6d and 5s. During the reign of Elizabeth I (1558-1603), coins were added in denominations of ¾ and 1½ pennies, although these denominations did not exist for a long time. Gold coins - half crown, crown, angel, half sovereign and sovereign. During Elizabeth's reign, the horse-drawn screw press was also introduced to produce the first ground coins.

After the arrival of the Scottish King James VI to the English throne, the minting of new gold coins was introduced, which included the rayol with spurs (15 shillings), the unite (20 shillings) and the rayol with a rose (30 shillings). A laurel denomination of 20 shillings followed in 1619. The first metal coins, tin and copper farthings, were also introduced. Copper halfpenny coins followed during the reign of Charles I. During the English civil war coins were produced under siege, they often had an unusual denomination.

Following the restoration of the monarchy in 1660, coinage was reformed and in 1662 hammered coins were produced. The guinea appeared in 1663 and was soon followed by coins in denominations of ½, 2 and 5 guineas. Silver coins were denominations of 1, 2, 3, 4 and 6 pence, 1 shilling, 2 shillings 6 pence and 5 shillings. Due to the widespread export of silver in the 18th century, the issue of silver coins gradually declined, the crown and half crown were not minted after the 1750s, 6d and 1 shilling coins ceased to be issued in the 1780s. The response was the introduction of copper 1 and 2 penny coins and the gold ⅓ guinea of ​​7 shillings in 1797. The copper penny was the only one of these coins that lasted the longest.

To reduce the lack of silver coins, from 1797 to 1804 the Bank of England issued Spanish dollars (8 reales) and other Spanish coins and coins of the Spanish colonies. The head of the king was depicted on small coins. These coins were used until 1800 with a rate of 4 shillings 9 pennies for 8 reales. After 1800, the rate became 5 shillings for 8 reais. The bank also issued silver 5 shilling tokens (produced after the Spanish dollars) in 1804, followed by 1 shilling 6d and 3 shilling tokens from 1811 to 1816.

In 1816 a new coinage was introduced with denominations of 6p, 1shilling, 2s 6d and 5s. The crown was issued only intermittently until 1900. This was followed by a new system of minting gold coins in 1817, which included coins in denominations of 10 shillings and 1 pound, which were called half sovereign and sovereign. The silver 4p coin was reintroduced in 1836, followed by the 3d coin in 1838 and the 4d coin, minted only for use in the colonies after 1855. In 1848, the florin was introduced in denominations of 2 shillings, followed in 1887 by the double florin, which did not last long. In 1860 copper was replaced by bronze in the production of farthings, halfpenny and pennies.

During the First World War, the issuance of the half sovereign and the sovereign was temporarily suspended, and although the gold standard was restored, the coins did not become widespread again. In 1920, the silver standard, from 1552 it was 925 sterling silver, dropped to .500. In 1937, a nickel-brass 3p coin was introduced, the last silver 3p coins were issued seven years later. In 1947, the remaining silver coins were replaced with cupronickel. Inflation led to the end of minting the farthing in 1956 and its withdrawal from circulation in 1960. In an effort to convert to the decimal system, the halfpennies and halfcrowns were withdrawn from circulation in 1969.

Decimal system

The first decimal coins were introduced in 1968. These were cupronickel coins in denominations of 5 and 10 pence, which were equivalent and were used along with coins of 1 and 2 shillings. The curved equilateral heptagonal cupronickel 50p coin was replaced by the 10 tishilling note in 1969. Decimation was completed when it was adopted in 1971, with the introduction of bronze ½, 1 and 2p coins and the elimination of 1 and 3p coins. The 6p coin was in circulation until 1980 with a value of 2½ pounds. In 1982 the word "new" was dropped from the coinage and the 20p coin was introduced, followed by the introduction of the £1 coin in 1983. The ½ penny coin was introduced in 1983 and eliminated in 1984. In the 1990s, there was a replacement of bronze with copper-plated steel and a decrease in the size of coins in 2, 10 and 50 pennies.
The old 1 shilling coins, which continued to be used and were equal to 5 pence, were withdrawn from circulation in 1991, following a reduction in the size of the 5 pence coin, 2 shilling coins were withdrawn from circulation in a similar way in 1993. Bimetallic British £2 coins. The modern coin (1997-present £2 coin) was introduced in 1998.

Currently, the oldest coins in circulation in the United Kingdom are the copper 1 and 2 penny coins, introduced in 1971. Before the change to the decimal system, small coins could not be older than a hundred years or more, with the image of any of the five monarchs on the obverse.

In April 2008, an extensive modernization of the coins was announced, which will be released in the summer of 2008. The new reverse of coins in denominations of 1, 2, 5, 10, 20 and 50 pence will have the image of parts of the royal shield, and the new 1 pound coin will have a whole shield.

Banknotes

The first paper sterling was issued by the Bank of England soon after it was founded in 1694. Denominations were originally indicated on banknotes at the time of printing. From 1745, banknotes were printed in denominations from 20 to 1000 pounds, with the addition of shillings for odd numbers. £10 notes appeared in 1759, followed by £5 notes in 1793 and £1 and £2 notes in 1797. The two lowest denominations were abolished after the end of the Napoleonic Wars. In 1855 banknotes were printed in full in denominations of £5, £10, £20, £50, £100, £200, £300, £500 and £1000.

The Scottish Bank began issuing banknotes in 1695. Although the Scottish pound was still the national currency of Scotland, the issued banknotes had a denomination of sterling and reached up to £100. From 1727, the Royal Bank of Scotland also began to issue banknotes. Both banks issued coins with a face value of guineas, as well as pounds. In the 19th century, statutes limited the smallest denomination banknote issued by the Bank of Scotland to £1, a note not allowed in England.

With the introduction of sterling in Ireland in 1825, the Bank of Ireland began issuing sterling banknotes, followed later by other Irish banks. These notes included the familiar denominations of 30 shillings and 3 pounds. The highest denomination of banknotes issued by an Irish bank was £100.

In 1826, banks 65 miles (105 km) from London received permission to issue their own paper money. From 1844, new banks were banned from issuing banknotes in England and Wales, but not in Scotland and Ireland. Consequently, the number of private notes decreased in England and Wales and increased in Scotland and Ireland. The last English private banknotes were issued in 1921.

In 1914, the Treasury introduced notes for 10 shillings and £1 to replace gold coins. These notes remained in circulation until 1928 when they were replaced by Bank of England notes. Irish independence reduced the number of Irish banks issuing sterling notes to five operating in Northern Ireland. Second World War had a radical influence on the issuance of banknotes of the Bank of England. In fear of a mass production of counterfeit money by the Nazis (see Operation Bernhard), all banknotes in denominations of £10 and above were discontinued, leaving only 10s, £1 and £5 notes to be issued. The issuance of banknotes in Scotland and Northern Ireland was not affected, leaving denominations of £1, £5, £10, £20, £50 and £100.

The Bank of England reintroduced £10 notes in 1964. In 1969, the 10 shilling note was replaced by a 50p coin as part of the preparations for the decimalization. Bank of England £20 notes were reintroduced in 1970, followed by £50 notes in 1982. The subsequent appearance of the £1 coin in 1983 allowed the £1 notes of the Bank of England to be abolished in 1988. The Bank of England was followed by the Bank of Scotland and the Bank of Northern Ireland, only the Royal Bank of Scotland continued to issue banknotes of this denomination.

Legal tender and regional issues

Legal tender in the United Kingdom (according to the Royal Mint) means "that the debtor cannot be sued for non-payment if he pays legal tender in court. This does not mean that any transaction must be carried out using legal tender or only within the amount established by law. Both parties can agree to accept any form of payment, legal tender or otherwise, in accordance with their wishes. To comply strict rules governing this legal tender, it is necessary to indicate, for example, the exact amount, since no further changes can be requested." Within the United Kingdom, the £1 and £2 coins are legal tender for any amount, while other coins are legal tender only for a limited amount. In England and Wales, Bank of England notes are also legal tender for any amount. Scotland and Northern Ireland do not currently have legal tender notes, although the Bank of England 10 shillings and £1 notes were legal tender, as were Scottish notes, during the Second World War (Protection of the Money Act 1939; this status was abolished on 1 January 1946). However, the banks made contributions to the Bank of England to cover the amount of their notes issued. In the Channel Islands and the Isle of Man, local banknotes in their respective jurisdictions are legal tender. Notes from Scotland, Northern Ireland, the Channel Islands and the Isle of Man are sometimes not accepted in shops in England. Shopkeepers in the UK can refuse any kind of payment, even if it is made in legal tender, as there is no debt when payment is offered at the same time as there is an offer of goods or services. When paying a restaurant bill or other payment, legal tender is accepted, but payment is usually made by some other method (such as a credit card or check). Rarely seen £5 and 25p ("krone") commemorative coins are also legal tender, as are mint-issued weight coins.

On the value of British money

In 2006, the Library of the Commons published a document that included an index of the value of the pound for each year from 1750 to 2005, where the value of the pound in 1974 was 100. (This was a new version previously published documents in 1998 and 2003). Looking at the period from 1750 to 1914, the document states: "Despite the years of significant price fluctuations prior to 1914 (depending on crops, wars, etc.), there has been no continued rise in prices since 1945." It further states that "Since 1945, prices have risen every other year by a total of 27 times." The index in 1750 was 5.1, peaking at 16.3 in 1813 before rapidly dropping after the end of the Napoleonic Wars to 10.0 and remaining in the 8.5 to 10.0 range at the end of the nineteenth century. The index was 9.8 in 1914 and peaked at 25.3 in 1920, before falling to 15.8 in 1933 and 1934—prices were only three times what they were 180 years earlier. Inflation had a strong effect during and after the Second World War - the index was 20.2 in 1940, 33.0 in 1950, 49.1 and 1960, 73.1 in 1970, 263.7 in 1980, 497.5 in 1990, 671.8 in 2000 and 757.3 in 2005.

Value against other currencies

The pound can be freely bought and sold in foreign exchange markets around the world, and therefore its value fluctuates relative to other currencies (rising when traders buy, depreciating when selling). This order is traditional among the major monetary units with the highest value in the world. On April 19, 2008, £1 was equal to US$1.99, or €1.26.

• Historical exchange rates (since 1990) can be found in the Exchange Rates section of the UK Economy Ledger List.
• you can see the current wholesale exchange rates of sterling in relation to other currencies.

The pound as the main international reserve currency

Sterling is used as a reserve currency around the world and is currently ranked as the third largest reserve currency. The pound's interest on the general reserve has risen over last years thanks to the stability of the British economy and government, the constant appreciation of value against other currencies and relatively high interest rates compared to other major currencies such as the dollar, euro and yen.

The modern monetary unit of Great Britain is known as GBP which is equal to 100 pence. Banknotes in use are represented by the following denominations: 1, 5, 10, 20, 50. Among the coins, 1 and 2 pounds, as well as 1, 2, 10, 20, 50 pence are distinguished. The British call the coin "penny", 2 pence - twopence (and contrary to all the rules of reading, it is proudly called "tapens"), 3 pence - threepence.

At different times, 1 pound (pound) had a completely different reverse. If Queen Elizabeth II always greeted us on the obverse, then, starting in 1983, on the reverse side, one could see plant themes, animals, bridges, as well as images of the royal coats of arms and shields of Belfast, London, Cardiff and Edinburgh.

But what kind of money was in use before? In 1971, Great Britain switched to a decimal monetary system, and “farting” and its derivatives third farting (third), quarter farting (quarter), half farting (half) were completely removed from circulation.

The initial issue of the silver farthing began under Henry III in the 13th century, but the weight of such a coin was constantly changing. In the 17th century, under King James I, a copper farthing appeared, the diameter of which was 15 mm. The end of the 17th century was marked by the release of a token, which was equal in value to a farthing and a halfpenny. At the beginning of the 19th century, “farting” was again produced, which was made of silver, gold and bronze.

Coins of England of the 16th century: shilling and floring

The first mention of the shilling dates back to the 16th century during the reign of Henry VIII. The “shilling” coin, which was often called a teston, was minted from copper, and the top layer was covered with silver.

Since the most prominent parts immediately appeared on the coin when it was used, and this was the nose of the king, the ruler was nicknamed “the old copper nose”. Later, the silver shilling continued to be issued under the reign. During the reign of George VI and Queen Elizabeth II, the last shilling was minted, the minting of such coins was discontinued in 1971.

However, before the appearance of the shilling, the florin floring was in circulation, which until the beginning of the 20th century was minted from 500 silver. Subsequently, it was replaced by two shillings (two shilling).

The appearance of the “penny” coin

The history of the British penny goes back to the distant 8th century, but the common English penny began to be issued a little later, in the 10th century under King Edgard. Since then, the weight of the coin has gradually decreased, and the amount of silver has decreased, as a result of which, already in the 16th-17th centuries, the “penny” coin acquired a small shape and light weight. New life was given to money by Queen Victoria, who established the minting of bronze coins in the middle of the 19th century. The modern "penny" is a hundredth of a pound sterling and is made of copper-plated steel.

The United Kingdom is strongly traditional. The rules seem unshakable, the laws are written as if until the end of time. Therefore, it is not surprising that Great Britain clung to the historically established monetary system to the last, different from most states of the twentieth century. A shilling was collected from a dozen pence, and a pound sterling was collected from two dozen shillings. In reality, the situation was even more complicated, since more than a dozen coins with various names functioned, where the largest (guinea) was equal to one thousand and eight of the smallest (farthings). It was difficult for lovers of English novels to understand how a grout differs from a sovereign, and why those who went to Great Britain in the late 60s could not bring a sovereign. The inconvenience of the number system created problems for financiers in the markets, which prompted them to change the number system. Moreover, countries such as Australia and Canada, having retained the portrait of the English queen on the obverse, switched from the pound sterling to the more convenient dollar as a national means of payment. Despite the short period that has passed since "Decimal Day", the British weather catalog has already gained significant thickness and volume.

British penny

February 1971 thinned out the detachment of monetary units, leaving only the pound sterling and its hundred change pence in service. In a number of currencies of the leading countries of the capitalist world, the pound sterling was one of the most significant units, so it is not surprising that the smallest coin was not a penny, but a halfpenny. But inflation also undermines the strongest currencies, so halfpenny is no longer found in the modern coin range. The penny is the smallest of the British coins.

The pedigree of a penny must be traced back to the monetary units that the Germanic tribes brought to the territory of modern Great Britain. Historians argue that the forerunner of singing will be the skete, which industriously performed the role of local money in the seventh century. The birth of the penny occurred in the eighth century, and it gradually became a more popular coin than the skeet, which lasted until the early ninth century. The first penny is silver coin. Only centuries later they began to mint it from copper, and later from bronze.

Since 1985, the penny has been the smallest coin in the UK. It should be noted that in the period from 1971 to 1981, the word "NEW" was minted next to the name of the denomination on the coins so that they would not be confused with pre-decimal coins. Of course, the coins were strikingly different in appearance. It is difficult to confuse a pre-reform penny with a diameter of 30.72 millimeters with a new penny that has shrunk one and a half times (20.3 millimeters). The Bank of England considered that a ten-year period was enough for the inhabitants of the United Kingdom to get used to the new money, so since 1982 the word "NEW" has been replaced by the capital value of the face value ("ONE PENNY").

Since 1992, there has been a reduction in the cost of issuing coins, when the monolithic bronze of the penny and twopenny coins was replaced by a copper-plated steel core. In order not to rebuild vending machines that react to weight, the new generation of coins had to be made thicker.

The design of the reverse is symbolically associated with the number "1". There is a lattice of fortress gates topped with a crown. This was the emblem of the first king in the Tudor dynasty, Henry the Seventh. A cardinal change in the design of the reverse of British coins took place in 2008. It was decided to leave unchanged only the largest of the denominations. For the rest, the work of Matthew Dent, who won the competition, was used with an interesting idea, when fragments of the Royal Shield are placed on the reverse. And the owner of a coin range from singing to fifty pence will be able to make an image of this shield from coins.

two pence

If one is a penny, then all other denominations are pence. Although our modern language allows the phrase "one penny", seeing this for a classic is the same as a well-mannered a good teacher Russian language to read "hare", parachute" or "one coffee". Accordingly, "two pennies" are two coins of one penny each. And if there is one coin, it is already "two pence". The date of birth of the modern version of two pence is February 15, 1971. It was then that the Royal Mint put this coin into circulation, completing the campaign to switch to the decimal system. At first, bronze served as the material for the blank, but since 1992 it has been a steel coin (9 3%), covered with copper (7%) Connoisseurs, however, pay attention to the fact of the existence of a bronze coin and later years of issue (in the catalogs for this variety, the letter "a" is added to the main number), which was issued to form collection sets, which included coins of "PROOF" quality.

There are many things associated with this coin. interesting stories. Let's take a look at the original reverse. What's with the crown of feathers? It turns out that when the denomination was put into circulation, it was planned to mint the coat of arms of Northern Ireland there. But the end of the 60s is an extremely turbulent period for Northern Ireland. Fresh in the memory of Belfast. There are armed clashes. Troops have been brought in, but skeptics are shaking their heads that Northern Ireland will soon leave the United Kingdom. Therefore, at the last moment, a decision was made: on the reverse of two pence to place a diadem decorated with ostrich feathers - the coat of arms of the Prince of Wales. The decision turned out to be clear. In 1972, the government of Northern Ireland was dissolved, and the emblem of Northern Ireland was deprived of official status.

The period of coins with the prefix "NEW" ends in 1981, and only for two pence it is unexpectedly extended until 1983 in a number of catalogs. The fault here is no longer politics, but junctions. In 1983, for the minting of a small part of the circulation, an outdated stamp was mistakenly placed, where the former "NEW" flaunted instead of the prescribed "TWO". UK weather collectors appreciate this mistake, so "NEW PENCE" 1983 are already trading with totals of several thousand pounds.

Note the fact that the packaging of two pence in bank packages is carried out in amounts equal to one pound. But hurry with this package to retail outlets. The plans of fans to upset cashiers by counting change from piggy banks in the UK will be severely overthrown. It turns out that for some denominations, amounts are legally established within which they are a means of payment. For the one penny and two pence coins, this amount is only twenty pence. If the periods of pre-reform coins of the USSR are divided by numismatists according to the number of ribbons in the coat of arms Soviet state, then for the coins of the countries of the Commonwealth of the British Crown, the dividing line is the change of the portrait of the ruling monarch. In Great Britain, the portrait has been changed three times so far. Note that the original version was created by Arnold Machin. From 1985 to 1997, Elizabeth II is depicted according to a portrait by Raphael McLough, and since 1998, the obverse of the coins has been decorated with a portrait by Ian Rank-Broadley. The obverse is the same for all coins of the Commonwealth of the British Crown, which includes such significant countries as Australia and Canada.

Five pence (UK)

And this is the pioneer of monetary reform, the purpose of which was the introduction of the decimal system. It is believed that she came to replace the shilling. There is a sense in this, since both the shilling and the new fivepence make up a twentieth of a pound sterling. The launch of the fivepence into circulation took place on April 23, 1968. Until 1971, these coins had to both saturate the circulation and become familiar, so that the rejection of the shilling did not seem like a national tragedy. Note that the shilling finally left circulation only by 1990. During the "decimal" period, the existence of the fivepence managed to change significantly. It originally weighed 5.65 grams and was 23.59 millimeters in diameter. But as soon as the shilling was gone, the fivepence dwindled to eighteen millimeters in diameter, and thinned to three and a quarter grams. Since 2012, copper-nickel for blanks has given way to nickel-plated steel. Since 2008, the reverse of five pence has become the central fragment of the overall composition. It is on it that there is a common point where all four coats of arms converge.

Ten pence (UK)

Paired with five pence coins of this denomination were the advanced detachments in preparation for the introduction of the decimal system. They also appeared in circulation on April 23, 1968. A tenpence weighing 11.31 grams and 28.5 millimeters in diameter was to take the baton from the florin (two-shilling denomination). The florin itself remained in circulation and existed for almost a quarter of a century, until July 1, 1993. From the same moment, even ten pence change dimensions, having noticeably decreased (weight - 6.5 grams and diameter - 24.5 millimeters). Both five and ten pence of the old sizes are withdrawn from circulation along with shillings and florins. A gigantic one and a half billion circulation, minted in 1992, was intended to replace the coins of the previous sample. However, with the date "1992" there are coins of both types. Nickel silver, familiar to us from the pre-reform USSR, was the material for blanks until 2012. Since January 2012, ten cents have been issued in nickel-plated steel. Modern ten pence are similar in size to American quarters.

Twenty pence (UK)

A decade of circulation of new coins has shown the inconvenience of an empty gap between denominations of ten and fifty cents. To fill it is the calling of the new denomination put into circulation on June 9, 1982. Copper-nickel blanks differ from other denominations in the form of an increased copper content (84% versus 75%). The coin borrowed the shape from the "fifty dollars" - the same Reuleaux heptagon. This form is designed to separate it by touch from other denominations (it cannot be confused with a fifty pence because of the difference in dimensions).

2008 gave numismatists interesting crossroads. Since this year, fragments of the English and Scottish lions have been minted on the reverse. But the fact is that on the coins of the previous issue, the minting date was located on the reverse, while the new design does not imply this. Date safely moves to the obverse. But chance interferes with the matter: an insignificant part of the circulation is minted with an old-style stamp. As a result The date is missing on both the reverse and the obverse.. Experts estimate that the circulation of the mix-ups was less than a quarter of a million. And they all went into circulation. So catching an undated twentypence would be a big hit.

Note that in the "decimal" period there was also a denomination twenty five new pence. But it was the minting of exclusively commemorative coins in 1972, 1977, 1980 and 1981. Since 1982, the task of this denomination was transferred to the twentypence.

Fifty pence (UK)

On October 14, 1969, a fifty-pence coin was put into circulation to help the five- and tenpence denominations. This is the first coin to have the shape of a Reuleaux heptagon. In the mathematical description of this heptagon, we can read the following properties of it: "The sides are not straight, but curved so that the center of curvature is at the opposite vertex of the coin." Numismatists explain not so intricately: "The coin does not have a fixed radius from any point, but it has a fixed diameter and a minimum size for the edge of the coin." The original reverse of the coin featured a portrait of a proudly seated woman with a lion peeking out from behind. This is Britain - an analogue of the American Lady Liberty and the French Marianne. In fact, this is the only surviving portrait of Britain on a weather card after the transition to the decimal system. But the work of Christopher Ironside had to become a thing of the past. Since 2008, according to the design of Matthew Dent, the lower part of the Royal Shield has been minted on the reverse.

One pound sterling

It seemed that the era in which the pound sterling would appear not as a banknote, but as a coin, would never come. But time changes everything. Inflation undermined the British pound, and by the beginning of the eighties it became clear that it was more profitable to present this denomination in circulation as a coin. The launch of the minting of the pound was announced in the summer of 1981. Really everyday coins appeared on April 21, 1983. A solid denomination differed sharply from pence in its impressive weight (only half a gram was not enough to ten) and color (yellow tint is provided by a fourth share of zinc in the total alloy of the coin). The obverse, as usual, occupies a portrait of the queen. The reverse is extremely difficult to describe, since it is not a constant. Every year it changes. If in the first year of release there flaunted National emblem, then after the reverse they presented symbols representing the constituent parts of the United Kingdom. First, flowers were involved, then heraldry, followed by famous bridges, and after that - the emblems of the capitals. However, the plant theme was resumed. As conceived by Matthew Dent since 2008, it is on the reverse of the pound sterling that the Royal coat of arms is placed in its entirety.

But then came the year 2017, and the Royal Mint transformed the round pound coins into a silver-gold dodecahedron, updating the portrait of the Queen and replacing the design on the back. New trends are primarily aimed at protecting against fakes, which already account for three percent of the total number of coins of this denomination in circulation. The updated pound sterling will become the most secure coin in the world. The reverse includes the union of the four parts of the British Empire in the form of four plants on one field. This version won the competition, and the competition was won by David Pierce, who by that time was only fifteen. "The Mint produces four thousand coins per minute," the British media are enthusiastically broadcasting. old pound round shape very soon lose the status of a means of payment and leave the turnover.

Two pounds sterling

The denomination of two pounds found the beginning of a glorious journey in three forms of a commemorative coin. At the same time, two-pound coins with a diameter of 28.4 millimeters and a weight of 15.98 grams were issued from an alloy of nickel and brass, from 925 silver and 917 gold. Looking at the thistle, it is difficult to understand why this coin is included in the "Sport" category. It turns out this is not a bug. Before us is not just a symbol of one of the parts of the United Kingdom, but the emblem of the XII Commonwealth Games, which were held in Scotland in 1986.

The researchers observed the circulation of this denomination. Based on the results of their work, it was decided, in addition to commemorative coins, to introduce a regular one of the same denomination. However, the regular version had a significant difference - it became the first representative of the bimetal in the UK. The outer ring consists of a triple alloy (76% copper, 20% zinc, and 4% nickel). The inner ring became cupronickel. The coin is heavy - twelve grams with a diameter of 28.4 millimeters. The launch of the coin into circulation took place on June 15, 1998. An interesting fact is that coins with the date "1997" were put into circulation, on which Elizabeth II was performed by Raphael McLough. The 1998 and later coins have a portrait of the Queen by Ian Rank-Broadley.

Its creator Bruce Rushin explained the complex reverse design as follows: we see the transition from the Iron Age, which symbolizes the outer ring, to the age of the Internet and new technologies. If you look closely, we see in the center the coordinated work of nineteen gear rings. According to the laws of mechanics, such a device could not function due to an odd number of gears. But this, apparently, did not bother Bruce Rushin at all. Between the gears and the outer ring, we observe a pattern created by fragments of printed circuit boards.

In circulation, we can also see five-pound coins. But they already belong to the "commemorative" category, so we will talk about them in the following articles.

Latest auction prices for coins in Russian rubles

Photo	Description of the coin	G	VG	F	VF	XF	AU	UNC	proof
	1 pound (pound) 2016 UK round	-	-	-	-	-	-	-	-
	1 pound (pound) 2016 new UK new (12-coal), no sign	-	-	-	-	-	-	-	-
	2 pounds (pounds) 2001 UK from 244 to 287 rubles.	-	-	-	-	244	-	287	-
	2 pounds (pounds) 1997 UK from 266 to 323 rubles.	-	-	-	-	266	-	323	-
	2 pounds (pounds) 1998 UK from 161 to 1,183 rubles.	-	-	-	203	161	195	373	1 183
	5 pence (pence) 1990 UK new type(small diameter and weight - 18 mm, 3.25 gr.) from 17 to 67 rubles.	-	-	-	17	67	-	-	-