Sunday, 28 August 2011

Knowing Pound Sterling

UK currency

The legal tender and the official currency of United Kingdom is Pound Sterling (or commonly known as the Pound).

Some basic information:
Pound Sterling symbol = "£" or "₤"
Pound Sterling Currency Code = GBP
Decimal coinage (Subdivision) = Pence (as in cents for Ringgit)
1 Pound Sterling = 100 pence
Pence symbol = p (read as pence or pee)
Form = coins and bank notes

Types of coins
There are few types of coins here. List below shows the basic coins available in UK.



Pound sterling have relatively higher values as compared to Malaysian Ringgit. Bringing £20 or £50 to buy low price product such as candy or cokes will end up keeping alots coins change. So, very often people would be carrying lots of coins. It is wise to bring along some coin wallet to keep large amount of coins instead of putting them in your poket.


Picture below shows variety of 1 pound (£1) coin available in UK 













Pound Usage and Acceptance 
The pound sterling is used in 4 countries in the United Kingdom - England, Scotland, Wales and Northern Ireland. Even though all these countries use Pound, there are some differences and the acceptance level of the Pound Sterling in different areas of UK.


Why is that so? Unlike in most of the countries where money printing is controlled by a central bank, 7 banks in UK are allowed to print their own bank notes. So, there will be different version of bank notes.


1. English Bank Notes (Bank of England) 
The legal tender in England and Wales and the most commonly used and generally accepted note throughout UK.

2. Scottish Bank Notes 
Not a legal tender but is widely and generally accepted in Scotland. Using your english bank note in Scotland during your Scotland trip will get you Scottish balance in return. Have fun collecting them but don't get too much of them. Some people may not accept them in England (especially those in small values).

3. Northern Ireland Bank Notes
Just like the Scottish bank note, it is only widely used in Northern Ireland. Still you may use it in other areas but some people might not accept them.

a words of advise- If you plan to go UK for the summer degree program, it's always a good choice to watch closely on the fluactuation of GBP and start exchangewhen the rate is good enough.

Many students wait untill the last minutes before doing the currency exchange, and ending up paying more for less british pounds.

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