The Pound Sterling
The oldest currency still in use started life as a pound weight of silver, and in Scotland and Northern Ireland the notes in your wallet might not come from the Bank of England.
Published
Quick Facts
- Symbol
- £, from the Latin libra, meaning pound weight
- Code
- GBP
- Nickname
- Quid, and 'cable' in the money markets for the dollar rate
- Decimalisation
- 15 February 1971, when 100 new pence replaced 240 old pence
- Who prints the notes
- The Bank of England in England and Wales, and six commercial banks in Scotland and Northern Ireland, three in each
- Origins
- Anglo-Saxon silver pennies, about 1,200 years ago
- Oldest still in use
- Often described as the world's oldest currency still in use
- Used in
- The UK, plus the Crown Dependencies and some overseas territories
A pound that was really a pound
Start with the name. The pound was once a weight, not just a price. In Anglo-Saxon England, 240 silver pennies weighed roughly a pound of silver, and that is where the idea came from. The Latin word for a pound weight was libra, which is why the symbol is a fancy capital L with a line through it. The abbreviation 'lb' for weight has the same root. 'Sterling' is a bit murkier. The most popular theory ties it to the silver penny, but nobody has settled the matter for good, so it is best to enjoy the mystery.
Twelve pennies, twenty shillings and a lot of headaches
For centuries, British money was gloriously awkward. There were 12 pence to a shilling and 20 shillings to a pound, making 240 pence in every pound. Add farthings, half-crowns, florins and guineas and you had a sum worth a school lesson. The guinea, worth 21 shillings, was named after the African region where much of the gold used to mint it was sourced. It lingered in posh circles, notably horse sales and bloodstock auctions, long after the coin vanished. Then came Decimal Day on 15 February 1971. The pound stayed, but it was split into 100 new pence. Banks closed for a few days beforehand to get ready, and a generation of grandparents grumbled for years about the new maths.
From gold to a promise
For much of its life the pound was backed by gold. Britain put itself on the gold standard in the 1810s, left it during the First World War, returned in 1925 and left for good in 1931. The Bank of England, founded in 1694, became the heart of the system. Its early notes were handwritten promises to pay the bearer, and that phrase survives today. Look at a banknote and you will still see 'I promise to pay the bearer on demand the sum of five pounds', signed by the Chief Cashier. The pound later became a major world reserve currency, before the US dollar took over that role in the twentieth century.
Why Scottish and Northern Irish notes look different
Here is the part that surprises visitors. In Scotland, three banks issue their own sterling notes: the Bank of Scotland, the Royal Bank of Scotland and Clydesdale Bank. In Northern Ireland, three more do it: Bank of Ireland, Danske Bank and Ulster Bank. First Trust Bank stopped issuing notes in June 2020. Their notes are not legal tender in the strict sense, but they are real sterling and are backed by Bank of England holdings. The designs are a joy. Scottish notes have featured the Forth Bridges, Sir Walter Scott and Nan Shepherd, the novelist and poet of the Cairngorms, who appears on the Royal Bank of Scotland's five-pound note. Northern Irish notes have featured the Giant's Causeway and the Mourne Mountains. Wales has no notes of its own. Welsh shoppers use Bank of England notes, although Welsh landmarks and a Welsh-language motto appear on some of the coins. The Royal Mint, based at Llantrisant in Wales, makes the coins.
Coins that carry the four nations
Coins are where the UK tells its own story. Over the years they have carried national emblems: the Scottish thistle on older 5p coins, the English rose on older 20p coins and the Welsh dragon on the former round £1 coin. The 2008 designs by Matthew Dent assemble a shield from the coins, so you need all six coins to see the full picture. The Royal Mint has produced British coinage for over a thousand years. Its Llantrisant site in Wales opened in 1968, and the move from London was completed in 1980. Collectors have long hunted rare pieces like the 2009 Kew Gardens 50p. Nicknames abound too. A pound is a 'quid', which is used in the singular for the plural, and a fiver and a tenner are the cash terms for £5 and £10. Where 'quid' comes from is still debated, and some trace it to the Latin quid pro quo.
The pound that stayed
When much of Europe adopted the euro from 1999, Britain kept its pound. The decision has been debated ever since, and the pound's independence is now a symbol of its own. The face on the money is changing. Queen Elizabeth II appeared on Bank of England notes from 1960, and coins featuring King Charles III began to be released in December 2022. Notes with his portrait followed in 2024. So the pound is a currency that is a weight, an idea, and a national habit, still jingling in pockets from Penzance to Shetland.
Notable people
- Sir Isaac Newton
- Matthew Dent
- Nan Shepherd
- Sir Walter Scott
- Queen Elizabeth II
- King Charles III
Keep exploring
The Crown Jewels
Published
Most of Britain's medieval regalia was melted down in 1649, so the Tower's main coronation pieces are Restoration-era. One crown still outweighs a bag of sugar.
The British Monarchy
Published
The King doesn't need a passport or a driving licence. Passports are issued in his name, and as sovereign he is exempt from licensing. It's a small clue to a very old job.
The Union Flag
Published
The Union Flag is flown upside down by accident more often than you'd think, and there's a right way up hidden in its wonky white stripes.