In Northern Ireland, there are four banks with the right to issue sterling notes. The Clydesdale Bank on the other hand features a variety of famous Scots along with different Scottish scenes or landmarks. The Royal Bank of Scotland printed notes in 1987 with Lord Ilay (one of the most powerful men in Scotland during the early 18th century) on the obverse and Scottish castles on the reverse. Among these, the Bank of Scotland series all feature Sir Walter Scott (who was responsible for ensuring Scotland’s right to print its own money) on the obverse and either different industries (1995 series) or Bridges of Scotland (2007 series) on the other side. In Scotland, there are seven banks allowed to issue notes. The Bank has stated that polymer notes will start being circulated in 2016 with the £5 and others to follow later. A £5 note featuring Winston Churchill and a £10 note featuring Jane Austen will be released in 20 respectively. The current Bank of England sterling notes all feature Queen Elizabeth II on the obverse, while the reverse features various other famous Britains including Elizabeth Fry, Charles Darwin, Adam Smith, Matthew Boulton, and James Watt. Notes from Scotland and Northern Ireland can be refused as payment in England and Wales and are usually not accepted outside the UK in any circumstance. This means that they are technically not legal tender anywhere in the UK, but are instead promissory notes (a promise of payment). In both countries, retail banks, not central ones, issue the notes. While the Bank of England prints all notes for England and Wales, the situation in Scotland and Northern Ireland is much more complex. The history and variety of sterling notes and coins offered in the UK is long and complicated, so we’ll focus predominantly on recent issues. Decimalization replaced this relatively unwieldy system with the well-known single currency (pound) with a single subdivision of 100 (pence). This day did away with the previous system of 1 pound = 240 pence with 12 pence = 1 shilling and 20 shillings = 1 pound. One of the most significant events in the history of the modern pound was Decimal Day on February 15, 1971. This also marked the end of the ‘sterling area’, which was the group of countries with currency pegs to the pound or ones that used it as their official currency. When the system collapsed in 1971, the pound was left to float freely. It was suspended as the country plunged into World War I, though a version of the gold standard was later reintroduced in the 1920s before being abandoned once again during the depression.Īfter World War II, the pound was pegged against the US dollar in accordance with the Bretton Woods system. The same would eventually happen in Ireland over 100 years later.įollowing the American War of Independence and the Napoleonic Wars starting in the late 18th century, the UK adopted the gold standard officially in 1816. The establishment of the Kingdom of Great Britain in 1707 led to the pound Scots replacement by the pound sterling. They, along with the Bank of Scotland that was formed one year later, began issuing paper currency for the first time. The pound as we know it began to take shape with the establishment of the Bank of England in 1694. During the early days of Britain’s global empire, the country was effectively on the gold standard, due to the huge influx of gold coming into the country and silver flowing out. The Tudor period again saw dramatic reductions in the silver content of some coins. The Tealby penny – introduced by Henry II – was made with 92.5% silver, which would remain the standard for centuries to come. Later in the Middle Ages, the weight and purity of the pennies were reduced. Pennies were distributed throughout the country, using a complex weight and accounting system involving troy grains of silver. Taking inspiration from Charlemagne’s Frankish kingdom, the pound was introduced during the reign of King Offa of Mercia (757-796). It traces its lineage back to Anglo-Saxon times, where a pound was equal to 240 silver pennies (a pound of silver). In fact, it is the oldest currency that is still in use today. The history of the pound dates back centuries. United Kingdom GDP (nominal): US$3.056 trillion (5th).As the currency used in the UK, the pound is one of the most important currencies in the world for one of the most important economies in the world, so having a grasp on it is crucial to understanding the FX market. Often referred to as simply the pound, the pound sterling is the official currency of the United Kingdom and some of its territories including the Channel Islands and the Isle of Man.
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