# Pound Sterling

By [Lika](https://paragraph.com/@lika) · 2024-01-17

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**Sterling** ([ISO code](https://en.wikipedia.org/wiki/ISO_4217): **GBP**) is the [currency](https://en.wikipedia.org/wiki/Currency) of the [United Kingdom](https://en.wikipedia.org/wiki/United_Kingdom) and nine of [its associated territories](https://en.wikipedia.org/wiki/Pound_sterling#Crown_Dependencies_and_British_Overseas_Territories).[\[3\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-4) The **pound** ([sign: £](https://en.wikipedia.org/wiki/Pound_sign)) is the main [unit](https://en.wikipedia.org/wiki/Unit_of_account) of sterling,[\[4\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-Can_Ox_D-5) and the word "[pound](https://en.wikipedia.org/wiki/Pound_\(currency\))" is also used to refer to the British currency generally,[\[5\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-HbIFT-6) often qualified in international contexts as the **British pound** or the **pound sterling**.[\[4\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-Can_Ox_D-5)

Sterling is the world's oldest currency that is still in use and that has been in continuous use since its inception.[\[6\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-Rendall-7) In 2022, it was the fourth most-traded currency in the [foreign exchange market](https://en.wikipedia.org/wiki/Foreign_exchange_market), after the [United States dollar](https://en.wikipedia.org/wiki/United_States_dollar), the [euro](https://en.wikipedia.org/wiki/Euro), and the [Japanese yen](https://en.wikipedia.org/wiki/Japanese_yen).[\[7\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-8) Together with those three currencies and [Renminbi](https://en.wikipedia.org/wiki/Renminbi), it forms the [basket of currencies](https://en.wikipedia.org/wiki/Basket_of_currencies) which [calculate the value](https://en.wikipedia.org/wiki/Special_drawing_rights#Value_definition) of [IMF](https://en.wikipedia.org/wiki/International_Monetary_Fund) [special drawing rights](https://en.wikipedia.org/wiki/Special_drawing_rights). As of late 2022, sterling is also the fourth most-held [reserve currency](https://en.wikipedia.org/wiki/Reserve_currency) in [global reserves](https://en.wikipedia.org/wiki/Foreign_exchange_reserves).[\[8\]](https://en.wikipedia.org/wiki/Pound_sterling#cite_note-IMFCOFER-9)

The [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England) is the [central bank](https://en.wikipedia.org/wiki/Central_bank) for sterling, issuing its own banknotes, and regulating issuance of banknotes by private banks in Scotland and Northern Ireland. Sterling banknotes issued by other jurisdictions are not regulated by the Bank of England; their governments [guarantee convertibility at par](https://en.wikipedia.org/wiki/Currency_board). Historically, sterling was also used to varying degrees by the colonies and territories of the [British](https://en.wikipedia.org/wiki/British_Empire)

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*Originally published on [Lika](https://paragraph.com/@lika/pound-sterling)*