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The British Pound is also commonly known as the pound sterling or the pound. It is the currency used in the United Kingdom. Convert Pound to USD and exchange live rates.
Rates updated: 2017-03-24 - EST time 02:03:06am

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The British Pound’s Past, Present, and Future

The pound is considered as the oldest currency that is still used these days. The use of this currency has originated back around 760 during the rule of King of Mercia. King Offa introduced the use of the silver penny, which spread quickly through the kingdoms of the Anglo-Saxon. Today, it has become the standard coin used in what is now called England. From 760 to 1158, the first pennies were made from fine silver. However, King Henry II introduced new coins made from 92.5% silver in 1958. This new coinage has become popular by the name sterling pound. These new coins were sturdier than the original coinage, which were struck from fine silver. Thus, these new sterling silver coins provide longer circulation period compared to the previous version.

Silver pennies were the primary coinage used from the eight century until the thirteenth century. They were also commonly broken down to smaller parts top make some modifications. However, there were times when the farthing and the half penny were struck.

British currency history

The British currency was originally made of silver until the gold noble was introduced in 1344. During the reign of Tudor, the amount of silver material used for coins constantly fluctuated. However, silver was still the main component for legal tender. In 1964, paper money was introduced and later on, gold was used as the legal basis. In 1487, the shilling was first introduced and followed by the introduction of the pound in 1489. These coins are both highly essential in the history and progress of the British Pound. During the Revolutionary and Napoleonic wars, the notes released by the Bank of England served as the legal tender. The value of this form of legal tender was based on gold. In 1816, gold was adopted officially as the standard and the use of silver coins was no longer popular. This is because the material was not worth their weight in silver anymore. In the 19th and 20th centuries, many countries adopted the use of gold as their standard. This resulted to easy identifying conversion rates among these countries. This is also a significant milestone in trading and global economy.

Over the centuries, the British Pound has seen various currencies all over the world. However, this currency remained well known among traders and investors. In fact, it is considered as one of the strongest currencies in the world. This is despite the fact that the United Kingdom did not decide to join the European Union and use the Euro currency. This brave and controversial decision has provided the country with a lot of benefits when it comes to having the highest currency value all over the world. In addition, in spite of the fact that the British Pound is usually traded on the free market, it still remains as one of the strongest currencies that the world has.

Major crisis

In 2009, the global economy experienced a major crisis. It has been a roller coaster ride with the ups and downs of the values of the currencies all over the world. The British Pound also suffered this major crisis. The pound exchange rate was considerably weak during the time. However, many countries expected that the United Kingdom would be able to recover from that global economic downturn. Fortunately, they were able to restore the credit markets within the year. The prices of oil were the major factor that has driven the lower inflation in the United Kingdom. This is in spite of the fact that he consumer price was set by the central bank above the percentage target. The Bank of England has been aggressive in lowering interest rates to the lowest possible rate in 57 years. The central bank is also committed to preventing deflation from a recession. However, these low rates of interests keep the pound exchange rate low, which also leads to the weakening of the currency.

For instance, the pound to dollar rate can be low and the same can happen with the case of the pound to euro. The British Pound can only regain its strength when it is able to restore the confidence of the consumers. In addition, when the pound gets weak, there is an excellent opportunity for the recovery of the economy as travelers go the United Kingdom because they have a stronger currency compared to the pound.

One of the strongest currencys

The British Pound remained the strongest currency in the world throughout 2009. It did not go below the euro, which some had assumed. The British Pound remains as a promising investment that traders and investors are particular of. The economy of the United Kingdom still encounters many risks, but it can surely overcome those possible problems as the pound exchange rate still remains strong and high valued. The proactive behavior of the Bank of England is perhaps one of the main reasonswhy the economy of the United Kingdom continues to outperform any other economy in the world. In fact, the significant progress of the country’s economy also leads to the growth of the entire global economy. The British Pound works well and constantly leaves its peer countries in the dust when it comes to pound exchange rate. This significant accomplishment offers added stimulus for the economy to reach the economic success. In fact, the economy of the United Kingdom is considerably further compared to other countries in Europe and the United States. In addition, when the economies of other countries fail, there is a great chance for the United Kingdom to develop and grow even further.

Pound to dollar

When the pound to dollar and the pound to euro rates are significantly in favor of the pound, the economy of the United Kingdom will continue to soar higher. The US dollar will fall sharply with quantitative lowering of interest rates in the United States. This condition can also provide additional stimulus for the economy of the United Kingdom to become stronger. Nevertheless, the British Pound is an extremely stable currency that provides a great outlook for investors and traders in the future. If the United Kingdom can maintain their economy in an excellent shape, then the British Pound will still remain one of the strongest currencies all over the world that has the highest value. Today, the British pound exchange rate remains as one of the highest value in the global economy. It is the fourth most traded currency in the global market behind the Japanese Yen, the Euro, and the US dollar. This is despite the fact that this currency boasts having the highest value compared to the other three currencies. As a matter of fact, the British Pound has been consistently worth higher than any other world currency for the majority of the time it has been used. It is also the oldest currency in the world that is still in circulation.

With these two reasons alone, you can say that the British Pound is definitely an excellent investment that you should opt for. With the fact that the pound exchange rate is always providing significant results to investors of the currency, it is also an excellent indicator for you to take advantage of this outlook for the future.