Currency in the United Kingdom GBP - Things to know
Foreign exchange guide to the United Kingdom and the British pound
What's in this United Kingdom currency guide?
What currency is used in the United Kingdom?
The official currency of the United Kingdom (country code: GB) is the British pound, with symbol £ and currency code GBP.
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Things to know about the British pound
The British pound Sterling is the official currency of the United Kingdom. It is represented by the symbol "£" and is abbreviated as GBP (Great Britain Pound).
Contributing to around 13% of all foreign exchange deals, the pound, or sterling, is the world’s fourth most traded currency.
Reputedly, sterling is 1200 years old. It is said that Anglo-Saxon traders used silver pennies in the eighth century called ‘sterlings’, 240 of which would equal one pound in weight.
Due to its membership of the European Union (at the time of the euro's introduction in 1999), Britain could have adopted the euro as its currency, however the British government opted against this because it wanted to retain monetary policy independence and because it perceived euro adoption as offering only small economic benefits.
In recent years, the most significant event to affect sterling’s valuation was the UK’s vote to leave the European Union on June 24th 2016 – a day on which the exchange rate for GBP/USD fell by as much as 11%.
In the past two decades, the pound’s highest valuation against the dollar occurred in November 2007 when GBP/USD reached 2.1161. Its lowest value came in October 2022, when GBP/USD reached 1.11.
The British are more focussed on their currency exchange rate than are the citizens of most other countries, along with perhaps the Australians and Canadians. This is may be due to the open and trading nature of the UK economy and also due to their love of travel to the nearby 'continent' and further afield.
The pound Sterling banknotes and coins
The physical currency consists of coins and banknotes. The coins come in denominations of 1 pence (p), 2 pence (p), 5 pence (p), 10 pence (p), 20 pence (p), 50 pence (p), and £1 and £2.
The banknotes come in denominations of £5, £10, £20, and £50. The banknotes feature images of famous British historical figures, such as Queen Elizabeth II, William Shakespeare, and Jane Austen. The design of the currency is constantly being updated, so the physical appearance of the coins and banknotes may vary slightly over time.
Travel money for the United Kingdom
Save money and time by Ordering your British pound online from Travelex, you get better rates and can pick up the GBP cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in British pound otherwise you may get much worst exchange rates.
Travel Ideas and Money Tips for the United Kingdom
England is still one of the most popular tourist destinations in the world. Be sure to get out of London as England's smaller cities and beautiful country villages are fascinating and boast a robust culture. England is not known as a budget location and if you don't keep an eye on your budget it can be expensive.
ATMs are everywhere and all major credit cards are accepted though you could purchase a Prepaid Travel Card if you prefer not to carry your credit card with you all the time while travelling.
In the United Kingdom, the National Rail service is known to always expensive, no matter how long your trip is. Depending how worried you are about your budget, by booking your ticket with the National Rail over a week in advance and during off peak hours, you can secure you tickets for for up to 50% less.
There are plenty of spots to visit in the UK. For major cities you have Manchester, Liverpool, Bath, Oxford and more. In Scotland you have the gorgeous Edinburgh and the more modern Glasgow, plus plenty of stunning countryside. In Northern Ireland there is Belfast plus the beautiful countryside and towns.
These days there are plenty of cheaps flights to get around in the United Kingdom with little effort and these are well worth taking advantage of, though you may like to take a ferry to get around between the islands. The ferries are usually pretty industrial and not overly romantic, but some might like to take a trip via water.
Is the Euro accepted in the UK?
The United Kingdom does not use the euro as an official currency however you may find some shops in the cities and larger towns or airports that will accept the Euro but watch out for the EUR/GBP exchange rates they offer.
USD/GBP Market Data
The below interactive chart displays the USD/GBP change and UP📈 DOWN📉 trends over the past 1 Year.
Frequently Asked Questions
What currency should I use in the United Kingdom?
The domestic currency in the United Kingdom is the British pound.
What is the British pound currency code and symbol?
The three letter currency code for the British pound is GBP — symbol is £.
Which countries use the British pound?
It is the domestic currency in United Kingdom, Guernsey, Isle of Man, Jersey and South Georgia and South Sandwich Islands.
Is the British pound a closed currency?
No, the British pound is freely available and convertible. See guide: What is a closed currency?
What are equivalent amounts of USD and GBP?
Here are some popular conversion amounts for USD to GBP (US dollar to British pound)*.
*Converted at the current USDGBP interbank exchange rate. Calculate actual payout amounts for Send Money and Travel Money exchange rates.
Send Money to the United Kingdom - Best Rates
To get a good (and fair) exchange rate when sending money to the United Kingdom you need to find and compare exchange rates for International Money Transfers (IMTs).
The available FX rates for sending money abroad can be very different to the mid-market (wholesale) rate which you see reported online and in the News.
You should especially compare your own bank's exchange rates to those available from Money Transfer specialists to see how much you can save - we make that calculation easy in the below table.
Get a better deal for foreign transfers to the United Kingdom
When sending money to the United Kingdom it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 4 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or British pound amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted GBP amount will be transfered to the recipient account you specify in the United Kingdom.
Use the above calculator to compare the exchange rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more British pound deposited into the recipient bank account and less margins and fees kept by the banks!
Expat Money & Business Guide to the United Kingdom
Managing your money effectively while living and working abroad can be challenging, but there are several steps you can take to ensure that your finances are in order.
By following these tips and managing your money effectively, you can reduce financial stress and enjoy your experience living or doing business in the United Kingdom.
How is the expat life in the UK?
Expat life in the UK can be a positive experience, as the country is known for its rich history, culture, and diverse society. It also offers a high standard of living and a strong economy. However, as with any move to a new country, there can be challenges to overcome.
One of the biggest challenges for expats in the UK is the weather, as it can be unpredictable and quite damp, especially in the winter. Additionally, the cost of living in the UK, particularly in the larger cities such as London, can be high.
Another challenge for expats in the UK is the bureaucracy and paperwork, as the country has a complex system of regulations and procedures. This can be especially difficult for those who are not familiar with the process, but with the help of a good lawyer or an expat association, it can be navigated.
The UK has a diverse society and it's relatively easy to find expat communities in most cities and towns. Joining one can be a great way to meet people and get support during the transition period.
On the positive side, the UK offers a high standard of living, with access to excellent healthcare, education, and social services. The country is known for its rich history, art and culture, with many museums, galleries, and theatres to visit. Additionally, the UK is home to many different cultures, so it's easy to find food and other cultural experiences from around the world.
Overall, expat life in the UK can be a positive experience, but it takes time to adjust to the new culture and way of life. With patience and persistence, it is possible to make a home in the UK and enjoy all that this beautiful country has to offer.
Managing your finances in the United Kingdom
Here we list some key points for expats and businesses to consider when managing financial dealings in the United Kingdom:
Understand British pound currency exchange rates: Exchange rates can have a big impact on your finances, so it is important to keep an eye on the GBP exchange rate and consider using a currency exchange service or a credit card that does not charge foreign transaction fees to get the best exchange rate.
Use a local British pound bank account: A local GBP bank account can make it easier for you to manage your finances and pay bills while you are in the United Kingdom. It may also be more convenient to use a local GBP bank account to make purchases and withdraw cash.
Research local laws and regulations: It is important to understand the local laws and regulations that apply to financial transactions in the United Kingdom. This can help you avoid legal issues and ensure that you are complying with local requirements.
Consider the tax implications: It is important to understand the tax implications of living or doing business in the United Kingdom. This can help you plan your finances and ensure that you are paying the correct amount of tax.
Seek financial advice: If you are unsure of how to manage your finances in the United Kingdom, it is a good idea to seek the advice of a financial professional who is familiar with the local financial system. This can help you make informed decisions and avoid financial pitfalls.