GBPBritish PoundBritish Pound (GBP)
The British pound, commonly called pound sterling, is the official currency of the United Kingdom. The Bank of England issues banknotes in England and Wales, while authorized banks issue notes in Scotland and Northern Ireland. The ISO code GBP keeps sterling amounts distinct from other currencies that also use a pound name or symbol. One pound is divided into 100 pence.
- ISO code
- GBP
- Symbol
- GBP
- Region
- Europe
- Currency type
- Fiat currency
- Exchange system
- The Bank of England issues banknotes in England and Wales; authorized banks issue notes in Scotland and Northern Ireland under the UK framework.
- Last reviewed
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Quick facts
GBP at a glance
Currency profile
How GBP works
The British pound, commonly called pound sterling, is the official currency of the United Kingdom. The Bank of England issues banknotes in England and Wales, while authorized banks issue notes in Scotland and Northern Ireland. The ISO code GBP keeps sterling amounts distinct from other currencies that also use a pound name or symbol. One pound is divided into 100 pence.
GBP conversions are commonly used for travel, international shopping, payroll, education costs and invoices linked to the United Kingdom. A published GBP reference rate provides a consistent comparison for a stated date, but it is not a guaranteed transaction quote. Cash providers, card issuers and transfer services can use different rate dates and pricing. Keeping GBP visible next to the pound symbol reduces ambiguity in international records.
- GBP is divided into 100 pence under the decimal system introduced in 1971.
- The ISO code distinguishes sterling from other currencies that use the pound name or symbol.
Context
Why this currency matters
Sterling is a major traded and reserve currency with deep links to global banking and commerce. GBP pairs are therefore widely used when comparing UK costs with European, North American and Asian currencies. The distinction between pounds and pence matters in calculations, while the GBP code matters in international documents. Users should also keep the reference date with budgets because a later card or bank conversion may be processed under a different published rate.
Monetary framework
Exchange arrangement
The Bank of England issues banknotes in England and Wales; authorized banks issue notes in Scotland and Northern Ireland under the UK framework.
CurrencyHub shows daily reference rates. Banks, card networks, ATMs and transfer providers may apply different exchange rates, fees or spreads.
History timeline
Key dates for GBP
Bank of England founded
The Bank began issuing notes soon after it was established.
Bank of England - banknote historyNote-issue position consolidated
The Bank of England became the monopoly banknote issuer in England and Wales.
Bank of England - banknote historyDecimal currency introduced
The United Kingdom introduced a decimal currency system on February 15, 1971.
Bank of England - 1971 annual reportFirst Bank of England polymer note
The Bank issued its first polymer banknote.
Bank of England - banknote questions
Usage and economy
How GBP is used
- Prices, payroll and payments in the United Kingdom.
- Travel, international accounts and reserve reporting.
Country currency guides
Banknotes and coins
GBP currency units
The Bank of England documents current banknotes and the rules governing authorized UK note issuance.
The Royal Mint documents the circulating coins issued for the United Kingdom's decimal pound system.
One British Pound unit is recorded with 2 decimal places and uses Penny as its minor unit.
Related currencies
Currency relationships
Explore currencies connected through regional use, trade comparisons or monetary relationships.
Currency topics
FAQ
GBP questions
Is GBP the same as pound sterling?
Yes. GBP is the ISO 4217 code for pound sterling, the currency of the United Kingdom.
Who issues British pound banknotes?
The Bank of England issues notes in England and Wales, while authorized banks issue notes in Scotland and Northern Ireland.
When did the pound become decimal?
The United Kingdom introduced decimal currency on February 15, 1971, with one pound divided into 100 pence.
Sources
Data and editorial review
Rate source: Frankfurter
Last reviewed:
Currency identity and cash information is checked against central-bank, government, ISO and official international sources.