Currency profile
British Pound (GBP)
The pound sterling (GBP) is the official currency of the United Kingdom and one of the oldest currencies still in use. It is divided into 100 pence and floats freely.
The British Pound today
Mid-market · updating…
The pound floats freely; its rate is set by the market and by Bank of England policy.
Exchange-rate regime
Free-floating. The pound floats freely. Its value is set by the market and influenced by Bank of England monetary policy.
The issuing central bank
The Bank of England, founded in 1694, is the central bank of the United Kingdom and issues the pound.
History
- c.800The pound has origins over 1,000 years old, making it one of the world’s oldest currencies in continuous use.
- 1971The pound was decimalised on 15 February 1971 — one pound became 100 new pence, replacing the old shillings and pence.
- 1992The UK left the European Exchange Rate Mechanism; the pound has floated freely since.
Coins and banknotes
One pound is divided into 100 pence. Coins: 1, 2, 5, 10, 20 and 50 pence and 1 and 2 pounds. Banknotes: 5, 10, 20 and 50 pounds, issued by the Bank of England (some UK banks also issue notes).
Popular British Pound pairs
What moves it
- The pound floats freely; Bank of England policy and UK economic conditions move it against other currencies.
- It is a widely-traded reserve currency, so global risk sentiment affects it.
Structural facts reviewed 2 August 2026 · reviewed quarterly. Sources: Bank of England. Live rates are mid-market — see our Methodology and Editorial Policy.