What is the British pound?

The British pound is the informal name of the pound Sterling, a currency unit for the UK and its territory. It is the fourth most traded currency around the world around the US dollar, Euro and Japanese yen, and it is the third largest reserve currency after the US dollar and euro. Because it is a free -traded currency, the value of the pound changes due to other currencies. Originally, the British pound was divided into twenty shillings and each shilling was worth twelve pencils (or pennies). In 1971, the United Kingdom decided to eliminate shilling and decimize the British pound to make one pound the same as a hundred cents. Decimized Penny has been stamped as "new penny" until 1981.

The value of the British pound was tied to gold until 1946, when it became completely convertible as a condition of loan offered by the United States. After shortening the gold standard ties, the British pound was hovering several meWe, including the US dollar and the German Deutschmark. In 1992, the British pound was set at the value of DM 2.95, when it joined the European exchange rate mechanism (ERM), but the government had to interrupt the agreement when the exchange rate proved unsustainable. In 1998, the government again floated the British pound to Deutschmark with better results. Since the exchange rate was set lower, Britain was able to export more goods. As a result of the economic success of Britain at the end of the 90s. The value of the pound increased and export rates dropped again.

Since joining the European Union, the United Kingdom had the opportunity to use the euro instead of a British pound, but the decision was unpopular to the British public. Many British citizens have resisted the loss of the Nationasymbol Al, while others fear that the transition to the euro will cause economic problems, as their interest rates would rise as their currency was associated with the second European exchange rate mechanism (ERM II). The British is the British at the momentRock protected from the euro through an loggering agreement, but in the end, all countries of the European Union will be used to use the Euro as their currency.