British money. Currency of England: Historical and Contemporary

small bargaining chip of some countries of the world in different periods of history, also such a name has an old English silver coin issued by King Offa on the model of denarii, and which became the basis of monetary circulation throughout England

Information about pennies, varieties of pence, including British penny, Scottish penny, Irish penny, Australian penny and Finnish penny, history of coins in different countries, appearance and modification of pennies over time

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Penny is, definition

Penny is small change of currency, the name of which came from the old Germanic language. The most famous is the British penny, first minted in the 8th century and has undergone a number of changes since then. The Scottish and Irish pennies are also known, the Australian, Finnish and Estonian pennies are less famous. Also, "penny" in the United States is colloquially called one-cent coins.

Penny is a bargaining unit of many countries and territories that at different times were part of the British Empire, as well as Finland and Estonia. The most famous is the British penny. At the time of the farthing, it cost a quarter of a penny.

Penny is British loose change. The name penny (in Old English - pennige) has a common root with the German word "pfennig".

Penny is English coin minted from the XI century. from silver, copper, bronze.

Penny 1927

Penny is one hundredth of a pound sterling is a modern British bargaining chip.

Penny is Finland's bargaining chip "equal to one hundredth of the Finnish mark.

Penny 1916

Penny is monetary unit of Great Britain, equal to one hundredth of a pound sterling (pound).

Penny is the monetary unit of the Republic of Ireland, equal to one hundredth of the Irish pound (punt).

Penny 1913

Penny is English silver, and eventually copper coin, first issued by King Offa on the Carolingian model.

Penny is old English silver coin. From the end. 17th century pennies were minted from copper, from 1860 - from bronze.

Penny coin

Penny is bargaining chip of Great Britain. 1 penny = 1/100 pounds sterling (until February 1971 1penny = 1/240 pounds sterling, or 1/12 shilling).

Penny is Finland's bargaining chip, equal to 1/100 of the Finnish mark.

Six pence 1887

Penny (penny) is 1/12 shilling or 1/240 lb. The name "penny" came from the old Germanic language, in which this word (pfenning, pfennig, penge) meant "coin", "money". For a long time, the silver penny was the most popular currency in England. Subsequently, pennies were made of copper and bronze.

British penny - English, later British coin. Until February 1971, the penny was equal to 1⁄12 shilling or 1⁄240 pound sterling, from 1971 to the present = 1⁄100 pound sterling.

The appearance of the English penny VIII century

Penny (penny) - English coin, first minted from silver by the King of Mercia Offa (757 - 796) on the model of Carolingian denarii ("d" - the first letter denarius - is the designation of penny). The obverse of the coin is a bust portrait of the king, the reverse is a cross with decorations. The diameter was originally approx. 17 mm, at Kenwulf (796 - 822) - 21 mm.

Offa, king of Mercia (in the central part of present-day England), introduced a silver coin called the penny (like the German pfennig, it comes from an ancient root meaning "gift" or "sign"). Subsequently, pennies became the basis of monetary circulation throughout England, and the coin of King Offa can thus be considered the forerunner of the current British pound.

King Offa's penny weighed 22.5 grains (barley grains). It was based on the principle previously tested by the king of the Franks Pepin the Short: he introduced "new denarii" (named after the Roman silver coin) into circulation, and decided that 240 coins should be made from one pound of silver. However, the Frankish and English pounds were slightly different, so the coins were not the same. King Offa's penny was minted his name.

It was the first silver coin in Britain. It was so convenient that even during Offa's life, other English kingdoms (East Anglia, Kent, Wessex) followed his example and introduced similar coins.

Subsequently, Offa reformed money circulation twice more, introducing coins of greater weight. On some of them his portrait was minted, and also (probably under the impression of Byzantine coins with Queen Irina) a portrait of his wife. Offa's gold coins are also known, including copies of Arab coins, apparently made for international trade.

Under Edgar (957-975), 35 mints began minting the English penny; under his successor thelred (979 - 1016), 11 types of coins were minted at 80 mints, but all with a bust portrait of the king and attributes of the kingdom on the obverse and with a cross on the reverse. These coins were minted in large numbers and were distributed throughout Europe and even in Russia. The weight of the coin ranged from 1.02 grams to 1.45 grams (20 grains - 22.5 grains). If necessary, the coin was simply cut into pieces, receiving a halfpenny and a quarterpenny. In 1257, the penny was issued from gold.

British penny until the 15th century

Until the conquest of England by the Normans (1066) and the first time after it, the quality of the penny remained almost unchanged. However, over time, the quality of the coins began to deteriorate (due to damage to the coins and non-observance of the general standard by the miners).

A particularly strong deterioration in the quality of the penny occurred during the reign of Henry II and during the time of King Stephen. In 1180, a new type of penny had to be introduced (the so-called "short cross penny") with a higher weight and silver content.

British penny

In 1180, under Henry II (1154 - 1189), pennies were minted, called "sterling" and gave the name to the pound sterling at the end of the XIV century. Sterling preserved the image (a bust portrait of the king with a scepter in his hand and a two-line cross with 4 dots in the corners) and a test until 1248. In 1248 the cross on the reverse was changed: it became longer and there were 3 points in the corners, in 1279 the cross was also changed to a simple wide one. The sterling test remained unchanged (~ 925), but the weight was constantly decreasing. Under Henry, it was 1.36 g, under Edward III - 1.17 g, under Edward IV - 0.97 - 0.78 g, and under Henry VII - 0.548 g.

In 1344 the weight of the penny was reduced from over 20 grains to 18 grains, in 1412 to 15 grains, and in 1464 it was further reduced to 12 grains.

For a long time, the penny remained the only coin in England. In the thirteenth century in England, new bargaining chips were introduced into use, larger and smaller than a penny: the growet (4p), halfpenny and farthing (1/4 penny).

By the XIV century, a harmonious monetary system was created in England:

1 pound sterling = 20 shillings (until the 16th century - only a monetary unit) = 60 grout (120 half-grout) = 240 pence (= 480 half-penny) = 960 farthing.

English penny in the 15th-18th centuries

The problems associated with the military spending of England (Hundred Years War) and the leakage of full-weight English coins to the continent contributed to a decrease in the weight and quality of pennies and other bargaining chips.

In 1412 the weight of the penny was reduced, in 1464 Edward IV reduced the content of silver in coins by 20%: the weight of a penny decreased from 15 grains (1 g) to 12 grains (0.8 g).

In 1528, Henry VIII introduced a new monetary standard: instead of the purely English Tower Pound (about 350 g), the international Troy pound (373.242 g) was introduced. Thus, the nominal weight of a penny (1/240 pounds) should have been about 1.555 g. However, the quality of the penny, as in other silver coins, continued to decline, and in general, the silver content in the coins of Henry VIII dropped from 925 to 333 th.

Three pence of British colonists

Under Edward VI (1547 - 1553) and Mary I, coins of 1 and 1/2 penny were issued, which were called "penny with a rose", since the reverse of these coins had a blossoming rose. These coins were of very low purity and were withdrawn from circulation in 1556.

Coins of 1 penny were also minted in small quantities, which led to the appearance of tokens - coins of the private minting of English merchants and industrialists, minted from copper or brass.

Queen Elizabeth (1558-1603) was forced to revive the silver denominations. During her reign, the quality of gold and silver coins was greatly improved, in part due to the regular capture of Spanish ships with precious metals from America. Still, Elizabeth's silver penny remained a very small coin - it weighed about 0.58 g.

Penny minting continued throughout the 17th century. In 1664, the penny weighed 0.5 g and had a diameter of 12 mm. The same standard was maintained in the first half of the 18th century.

Under King George II (1728-60) in 1750-58, the silver penny was minted only as part of a set of small silver coins (1d, 2d, 3d and 4d) for the Easter week money distribution ceremony (the so-called Maundy Ceremony).

The tradition of issuing silver coins for distribution during Easter week has been preserved to this day (coins were not issued in 1800-17; from 1822 to the present, special coins have been issued for this purpose).

The first copper pennies were issued in 1797, and were produced by Matthew Boulton and James Watt, at their Soho mint in Birmingham, on steam coin machines. These coins contained the full value of copper. They were so heavy that they soon became known as the "cartwheel".

This coin is one ounce (28.3 g) and 36 mm in diameter. The reverse featured a seated Britain. In 1806-08, a copper penny weighing 18.9 g and a diameter of 34 mm was produced. The next copper pennies were issued only in 1825, during the reign of George IV. The penny weighed 18.8 grams and had a diameter of 34 mm.

The penny was minted for only 3 years (the 1827 issue was intended specifically for Australia). It is noteworthy that in the British colonies in Australia these coins were sold at a price 2 times higher than their face value.

During the reign of William IV (1830-37), the penny was also minted irregularly, and it was only under Queen Victoria (1837-1901) that the regular minting of the penny began in 1839.

Bronze pence

In 1860, pennies were made of bronze. The new coin began to weigh 9.4 g and was 30.8 mm. From 1860 to 1970, the parameters of the coin and the appearance of the reverse remained practically unchanged.

The last years of minting silver pennies: 1763, 1765 - 1766, 1770, 1772, 1776, 1799 - 1781, 1784, 1786, 1792, 1795, 1800, 1817, 1818, 1820, subsequently the penny is issued only as maundy money. The weight of the last pennies was 0.5 grams (1817 - 1818, 1820 - 0.471 grams) with a diameter of 11 mm.

I will briefly put here the history of the legendary penny of 1933: several minted copies of this coin in 1933 were immediately placed in the mint museum, which is why the debate about the existence of this coin has not ceased to this day, but nevertheless its existence has already been recognized since more hunting than before. This is confirmed by photographs of several of these coins:

At the moment, 6 copies of this coin are in the jurisdiction of the Royal Court, but, according to witnesses, there was also a 7th copy, which was lost. The reason for such a small minting of the penny at that time was that the minting of coins in 1919 and in 1921 was so great that minting of coins in 1923-1925 was not necessary, the same happened with the penny 1933.

However, much more of these coins were originally minted - according to the tradition that exists in the world to this day, in the year of the laying of a new building, coins of this year of issue are placed in its foundation. Consequently, a set of coins, including 1933 pennies, was sent to the University at Bloomsbury and also two sets to two churches in the Diocese of Ripon in Yorkshire. The Mint holds two copies for its own collection, and in addition another penny has been donated to the British Museum.

But the 1933 coin set was stolen in most of these cases, but as far as we know, the University of London still has a 1933 penny. In 1994, the original 1933 penny was sold by the Mint for more than £ 20,000.

British penny after 1971

After Great Britain switched to the decimal system in February 1971, the penny was equated to 1 / 100th of a pound sterling.

Coins were issued 1/2 (until 1984), 1, 2, 5, 10 and 50 pence; to distinguish them from previous pence, they were written NEW PENNY (NEW PENCE).

British mint

A 25-pence coin was minted as a commemorative coin (1972, 1977, 1980, 1981). Since 1982, they began to mint a coin of 20 pence.

Since 1982, the denomination has been written on the coin (for example, ONE PENNY, TWO PENCE).

In 1983, as a result of an error on some 2p coins, the old NEW PENCE inscription appeared instead of TWO PENCE. A very small number of such "erroneous" coins were issued and therefore their collectible value is many times higher than the face value (for example, as of May 28, 2010, a 1983 2p coin with the inscription NEW PENCE could be bought for £ 3,000).

Since 1992, instead of bronze pence (1 and 2), they began to mint pence from steel and plated with copper; to maintain the weight and diameter of the coins, they were made somewhat thicker.

The design of the new penny was adopted from the old 3p coin (due to the close exchange rate) - Portcullis. Designed by Christopher Ironside.

Penny in the UK monetary system

The monetary unit of Great Britain - the pound sterling (from the Latin pondus (gravity, weight) - in the past a measure of weight and monetary unit) has been introduced into circulation since the time of the Anglo-Saxons. The name of the currency reflects the mass content of the metal used to mint British coins - pence; from one pound of silver, 240 pence was minted, which was also called "sterling", 20 pence was a shilling, respectively, in 1 pound there were 12 shillings. The word "sterling" meant money of standard weights and samples, as the big silver pennies were called. In the early Middle Ages, the monetary unit of many Western European countries was the so-called Roman pound, or Libra. Since the mass of 240 pence, or sterling, was equal to the unit of mass - a pound, i.e. Libra, the pound sterling still has the L symbol.

The monetary system of Great Britain until 1971 was one of the most complex in the world. One pound sterling = 4 crowns = 20 shillings = 60 grout = 240 pence.

One crown was equal to 5 shillings, one half-crown was 2.5 shillings.

One florin was equal to 2 shillings.

One shilling = 3 groats, one grow = 4 pence.

One penny = 2 half pennies = 4 farthing.

In addition, the guinea was used as a unit of account, equal to 21 shillings or 252 pence.

12 pence was the main unit of account for the population - the shilling. Accordingly, there were half shilling coins - 6 pence and a quarter shilling - 3 pence. There were also one penny coins. In addition, the penny itself was split into four farthings (derived from Old English feorling - quarter). Accordingly, there were 1 farthing and one half penny coins.

Further: two shillings, minted in a single body, that is, in the form of one coin, were called florin. Since about the 17th century, the florin is not a monetary unit, unlike a penny or shilling, but the name of a coin. Since 1936, it has not been officially used, and on a double shilling it was minted: two shillings (two shillings).

Along with the coins, there were also paper shillings - banknotes of 1,2, 5 and 10 shillings.

The five shillings minted in a single body were called the "crown" (crown). In the 20th century, “crown” is also only the name of a coin, not a monetary unit; since 1947, the word crown has not been used on coins, but “five shillings” is written.

Thus, until 1970, the English monetary system consisted of three monetary units: penny - shilling - pound and three intermediate fractions: farthing - florin - krone.

This confusing system made financial calculations difficult, and in February 1971 monetary calculation in Great Britain was brought to the decimal system.

Scottish penny

Scottish penny (peighinn) - in the Middle Ages, following the example of England and France, it was equated to 1⁄12 Scottish shilling or 1⁄240 Scottish pound. After the conclusion of the union of England and Scotland (1707), 12 Scottish pounds were equal to 1 English, so that the Scottish shilling (sgillinn) began to correspond to the English penny.

Scotland had no money of its own until the reign of David I (1124-1153), and then only farthing, halfpenny and penny were minted. Since the reign of Robert II (1329-1371), gold nobles and silver groats have appeared.

Scottish coins are known for their variety. Robert III added a lion (golden crown) and a half-lion. James III (1460-1488) added the golden rider and his factions, as well as the golden unicorn, billon plak, and copper farthing. Subsequently, the use of base metals increased, and gold and silver were often scarce.

The value of Scottish money inevitably fell in relation to the sterling, until, in the end, it turned out that the Scottish shilling (12 pence) was worth no more than an English penny.

After the Unification of the Crowns (1603), the Mint in Edinburgh continued to mint its own coins, but gradually they were harmonized with the English weights and purity of the metal, which explains the appearance of denominations of 12, 30 and 60 shillings (equivalents of English shillings, half-crowns and crowns). The last Scottish coins were similar to the English ones, but they were marked with an E under the bust of Queen Anne. The Edinburgh Mint closed in 1708.

Irish penny - before the changeover to the euro = 1⁄100 Irish pound (in 1928-70 = 1⁄12 Irish shilling = 1⁄240 Irish pound).

The first coins of Ireland, 10th century

The first Irish coins were minted back in 997 and were equal to the pound sterling. The denomination of the coins and their division were also similar: 1 Irish pound was equal to 20 shillings, and a shilling - 12 pence.

The first Irish coins had a hole in the middle, they minted the name of the king and the name of the capital - Dublin.

Under King John the Landless of Ireland, Irish pennies and halfpennies were minted.

The first local minting was the so-called Irish-Norse, first started in Dublin around 995. under the leadership of Sitrik III (Silkbeard), the Norwegian king of Dublin.

The early Irish-Norse coins were good copies of Ethelred II's English penny from the 979-1016 AD period. It is worth noting that the copying of thelred's coins was not an attempt to counterfeit - the English were widely recognized in Northwest Europe at the time, and the Sitrik monetaries used their designs to ensure that their coins were equally recognized. But the coins were duly signed as being produced in Dublin under the rule of Sitrick. After the Battle of Clontarf in 1014, Ireland became more isolated from its neighbors and the need for money was not as high as under the Norwegian settlers who were traders and actively used money. Irish-Norse coins quickly degraded to a rough ‘long cross’ copy of Ethelred’s coin and by about 1030 they contain a minimal legend of vertical strokes instead of letters.

Over the next 100 years, the coins became more and more coarse, although for the most part the inherited design of the "long cross" was still recognizable. By the early 1100s, coins were double or one-sided bracteates (thin coins where a raised image on one side appears concave on the other). It is difficult to trace how the later Irish-Norse coins were actually used as coins, so thin and fragile they were. It is reasonable to assume that the number of coins has decreased greatly due to the deterioration in the quality of the minting. Even before the arrival of the Normans in Ireland in 1169-1170. production ceased.

Cross coins were produced in England between 996 and 1001. The Irish Mint began operating during this period - probably in 997. Coins were issued in the name of Sitrik and signed by several Dublin minters. Coins also appear with the obverse of thelred, but with Dublin mintymasters on the reverse, and also with the signature of the English minter on the reverse along with the obverse of Sitrik.

A fourth version of the Irish coin, with both sides containing directly copied "English" signatures, is also possible, but such coins would be difficult to distinguish from "real" English pennies.

Ethelred's ‘cross’ release was followed by a ‘long cross’. The Irish Mint probably adopted the new design within a few months of its introduction in England. An English print run was issued between 1002 and 1008. - The Irish Mint likely operated during most of this period and produced more coins of this type than in any other Phase.

The final release of Ethelred's penny had a small cross - in England, this type was a return to an earlier type. These coins, which are less common than the long cross type, indicate a decline in coin production in Dublin.

Ethelred's ‘helmet’ release followed his ‘long cross’. In Dublin, these coins were also copied with the name of Sitrik, but the mintage was much smaller as the coins are comparatively rarer.

Ethelred II died in 1016. and Knut (son of Sven - King of Denmark) succeeded him on the throne. The first coin issue featured Knuth on both sides. The Dublin Mint still copied its contemporary English style, but imitation coins of this type are even rarer than the 'helmet' type. The subsequent issue of the Knut (Helmet Type) is not represented by any surviving coins, and it is likely that this issue of the Knut is the end of the first phase of Norse-Irish coins, circa 1018.

The long cross was originally produced between 1002. and 1008. However, this type was especially popular, and perhaps due to a change in priority directions of trade after the Battle of Clontarf in 1014. or for other reasons, the Dublin Mint found it more useful to produce coins of this old style than to continue to follow the frequent changes in English coinage.

This second phase of Irish-Norse coins and the next includes coins that are mostly of the long type of cross. Early Phase II coins contain a bead in each quarter of the reverse and are well minted with clear legends. The quality of coins gradually deteriorates over time, legends become less understood and the quality of silver declines. The final coins of the second phase have legends, which are composed of symbols that only resemble writing, and often contain superfluous signs. The symbolic representation of a human hand appears on some later coins.

After the end of minting coins that completely copied the current English, the Dublin Mint returned to minting coins such as the long cross of Ethelred II in about 1020.

Around 1035. minting in Dublin deteriorated so much that coins were only produced for domestic use within Ireland, as minting fell below the standards used in any neighboring regions. Coins became smaller, of poor quality silver, legends consisted of strokes and symbols rather than inscriptions, the symbol of the human hand appears on many coins in one or more (usually two) quarter-reversals.

The Irish did not have a coinage culture, and their experience with the brief earlier editions was clearly insufficient to enable them to continue to coin to a high standard after the transfer of power from the Dublin Vikings to the Irish Aboriginal Chiefs and High Kings.

This phase of Norse-Irish coinage lasted until about 1060 AD.

The fifth phase of the Irish-Norwegian coins is really something of a blooper. It is the concentration of an extensive series of pennies that vary considerably in design, overall style, production quality and weight. They were produced in a period of approximately 40 years between 1060 and 1100.

By about 1100, Norwegian-Irish coinage had gained relative stability and a significant number of coins of approximately similar design were minted. These coins had a design on the obverse - a bust of Ethelred in beams, as in the "long cross" editions with the addition of a staff in front of the face.The reverse shows a pair of scepters in opposite quarters, and the other pair of quarters usually showed a cross or a ball, or less often a ring.

Phase VI coins were made of lower quality silver than previous editions and a darker one. Several hoards of these coins have been found and are believed by many to be less expensive than anything other than Phase III coins. Coins are generally unattractive with very poor mint quality and dark surfaces that reduce their market value.

Irish penny until the twentieth century

During the reign of Henry VIII, a drawing of a harp appeared on the coins. Coins were minted from copper, silver and gold. As a result of wear and tear, the Irish pound has fallen and fluctuated from time to time. So, in 1701, 13 Irish pounds were equal to 12 English pounds, i.e. 1 English silver shilling was equal to 13 Irish pence. Ireland no longer minted its own silver pounds in those years, and since 1823, when coins were minted for King George IV for the last time, the issue of copper pennies has also ceased.

After the conclusion of the political alliance between Ireland and the UK, the country's banks issued exclusively paper banknotes. This was the case until Ireland gained independence in 1922.

Irish penny in the XX-early XXI century

After Ireland gained independence from Great Britain, it became necessary to create its own monetary system. The New Irish Free State decided to maintain ties with the pound sterling and issued the Irish pounds, shillings and pence in circulation and adopted the British system - in shilling 12 pence, in pound - 12 shillings. The traditional Irish harp was chosen as the symbol for the new coins.

The first revived Irish pounds were issued in 1928, they were also pegged to the British pound sterling and were divided into 20 shillings and 240 pence. This was dictated by purely economic considerations - 98% of the country's exports went to the UK.

To create the design of the national currency, a special committee was created by the Government of Ireland.

It was decided that the obverse of all Irish coins would have a harp and the inscriptions ("Saorstát Éireann") would be in Gaelic script. The first nickel coins were minted at the Royal London Mint.

In 1938, after the adoption of the constitution, the inscription on the obverse of the coins was changed to "Éire" (the name of the country), and coins began to be minted from a copper-nickel alloy. In 1950, silver coins went out of circulation. In 1966, a 10 shillings coin was issued, on the reverse of which the Irishman Patrick Pearce is depicted.

By the 60s of the last century, the decimal system was introduced, and after extensive discussion (1969), the Irish pound, like other currencies, began to be divided into 100 pence.

The coin was issued on February 15, 1971 after the approval of the second of three designs for the future coin. The sketch was designed by the Irish artist Gabriel Heisem; its design is an adapted image from the Book of Kells at Trinity College Irish. The coin originally had a diameter of 2.032 centimeters, a mass of 3.564 grams and consisted of an alloy of copper, tin and zinc.

The original official name "new penny" was changed in 1985 to simply "penny". In 1990, the decision was made to produce coins from copper-plated steel, as bronze had become relatively expensive.

The coin is 1/100 of the Irish pound and was phased out with the introduction of the euro.

Finnish penny

The Finnish penny is Finland's bargaining chip before the introduction of the euro, equal to 1⁄100 of the Finnish mark. Since 1963, the country has minted coins in denominations of 1, 5, 10, 20 and 50 pennies.

Until 1917, when Finland was part of the Russian Empire, coins in denominations of 1, 5, 10, 25 and 50 pennies were in circulation. All coins had Finnish inscriptions on the reverse. Coins in 1, 5 and 10 pennies had on the obverse the monograms of tsars Alexander II (A II), Alexander III (A III) and Nicholas II (N II), who also ruled the Grand Duchy of Finland. On the coins of 25 and 50 pennies, instead of the royal monograms, the coat of arms of the Grand Duchy of Finland was depicted (a Russian eagle with the coat of arms of Finland on its chest).

Finnish penny from the time of Alexander II

By the Manifesto of March 23 (April 4) 1860 "On changing the monetary unit for the Grand Duchy of Finland", the Finnish bank is allowed to mint a "special" coin - the mark (MARKKA), divided into 100 pennies (PENNIA). According to the Manifesto: "Each mark corresponds to a quarter of a ruble in terms of the amount of pure silver in four spools twenty-one shares, which, according to the current laws on coins, is in silver in a ruble, and thus will contain one spool five and a quarter of pure silver." (Collection of Resolutions of the Great Principality of Finland, 1860, No. 7). Copper coins are minted in a stack of 128 marks (32 rubles) from a pood. In calculations, a penny is equivalent to 1/4 of a penny of the Russian Empire.

On the Finnish side, the “fathers” of the Finnish mark are considered the head of the Finnish Senate's financial expedition, Baron Langelschold, and his successor, Johan Snellman, Finnish senator, publicist, father of Finnish nationalism. The name for the new currency was invented by Elias Lönnrot, the collector of the Kalevala. The name "mark" was chosen because it is a well-known name for coins and this word was the oldest Finnish word for money. The word "penny" was already used in Finland in the Middle Ages (in the Swedish form of penning) and is consonant with the Finnish word "pieni" (small).

In 1863, the Stockholm Mint minted test coins for Finland in denominations of 1, 5, 10 and 20 pennies. They were larger and had a wide rim. In 1866, test coins of 2 and 20 pennies were minted. The 2 pennies were of two kinds: with and without a scalloped rim. 20 penny with rim only.

Since 1864, the Helsingfors Mint began to mint Russian-Finnish coins: silver (2 and 1 mark 868 silver (2 and 1 mark 868, 50 and 25 pennies 750) and copper (10, 5 and 1 a penny).

About Finnish singing

Stamps for coins were made:

From 1864 to 1872 in Stockholm - Leo Alborn;

In 1873 in St. Petersburg - Abner Grilikhes;

Since 1874, the position of carver was opened at the Finnish Mint, which was occupied by Carl Jahn.

During the reign of Alexander II, the appearance of the coins did not change.

Characteristics of Finnish Pennies from 1881 to 1894

After 1885, when the weight, fineness and appearance of the Russian silver coin changed, the manufacture of silver was preserved in Finland according to the same standards and the same design. The Russian gold coin is listed in the same pile as the Finnish gold mark, while maintaining the ratio of one to four.

The entire circulation of coins was minted at the Helsingfors Mint, which operated during the period when the Grand Duchy of Finland was part of the Russian Empire from 1763 to 1917. It did not put its own designation on the coins.

Finnish penny from the time of Nicholas II

Copper coins after 1894 were minted with the new monogram of Nicholas II, while silver and gold coins retain the appearance of the previous reigns.

Witte's monetary reform of 1897 does not affect the Finnish monetary system. After the reform, the gold 20 marks correspond to the semi-imperial seven and a half rubles. Accordingly, the silver mark, which used to be 1/4 of the ruble, grew by one and a half times and began to equal 0.375 of the silver ruble of the Russian Empire. All silver and copper coins have kept their feet. With the outbreak of the First World War, the issue of gold (10 and 20 marks) and high-quality silver (1 and 2 marks) coins was discontinued.

The Helsingfors Mint was the first to respond to the revolutionary events of 1917 in Russia. Less than a month after Nicholas II's abdication from the throne, the Senate of the Grand Duchy of Finland decided to place on all Russian-Finnish coins, both silver and copper, the coat of arms of the Russian Empire without imperial crowns over the eagle.

The volume of minting in 1917 of silver coins with the royal coat of arms was almost four times higher than the volume of minting of these coins with the changed coat of arms (3440 thousand against 864 thousand Finnish marks). This circumstance suggests that the minting of Russian-Finnish coins at the Helsingforga Mint could have been completely finished in 1917 even before the official approval of the coat of arms of the Provisional Government, which never appeared on these coins.

On December 4, 1917, the Finnish Senate adopted the Declaration of Independence of Finland. On December 31, 1917, the Soviet government adopted the Act on the Recognition of the Independence of Finland. Finland is seceding from Russia. Coins with imperial symbols and symbols introduced during the period of the Provisional Government continued to circulate on the territory of independent Finland as early as 1918.

The entire circulation of coins was minted at the Helsingfors Mint, which operated during the period when the Grand Duchy of Finland was part of the Russian Empire from 1763 to 1917. It did not put its own designation on the coins.

Finnish penny after 1917

In independent Finland (after 1917), the denominations of the coins remained the same, but the drawing changed. First of all, the Russian state symbols were changed to the coat of arms of the Finnish state. New coins were introduced into circulation during the period 1918-1921. The appearance of some coins changed slightly in 1940-1941.

In 1963, not only the appearance, but also the denominations of the coins changed again: coins of 1, 5, 10, 20 and 50 pennies were issued.

In the period 1969-1990, the designs on the coins changed several times, but the denominations established in 1963 remained unchanged.

Since 1990, coin inscriptions have become bilingual: in Finnish and Swedish.

Estonian penny

The Estonian penny is a changeable currency of Estonia in 1918-28, equal to 1⁄100 Estonian mark.

The Bank of Estonia was founded on February 24, 1919. On April 30, 1919, the Estonian Central Bank was given the exclusive right to issue banknotes. On August 12, 1921, the government ordered the Minister of Finance to issue 10 and 25 mark change bills. Coins appeared a little later, in 1922.

The 1922 coins were minted in Germany, the 1924, 1925 and 1926 stamps were minted by the State Printing House in Tallinn. Of the state treasury notes, there were 5 pennies, 10 pennies, 20 pennies, 50 pennies, 1 mark, 3 marks, 5 marks, 10 marks, 25 marks, 100 marks, 500 marks, and 1000 marks in circulation.

Australian penny

The Australian pound was the currency of Australia from 1910 to 1966. A pound consisted of 20 shillings, each shilling consisted of 12 pence.

The 1930 Australian penny was struck by the Melbourne Mint. Today numismatics says that there are only six copies of them. Penny is a copper-plated silver coin. Numismatists have such a term: "Proof quality coin". This means that this coin is of the highest quality, having a perfect mirror surface, which is achieved by double striking the stamp when minting the coin.

Interesting fact. In Polynesia, the government of the State of Tuvalu has ordered the issuance of a souvenir gift in honor of the Australian penny. This souvenir is a coin made of silver, plated with copper and it is located in a beautiful wooden box. A gift coin can also serve its intended purpose - it can be used as an ordinary 1 Australian dollar coin. Their circulation is 5 thousand, each of them has a numbered certificate.

American penny

One-cent coins in the United States are colloquially called "pennies".

Coins minted at the United States Mint have been in production since 1792 to the present.

Fake American Golden Penny

One evening (2007), Seattle-based artist Jack Dose walked up to a kiosk at Los Angeles airport with a bit of change, including a fake 18K gold cent coin he made himself. After paying a small change (along with the fake) $ 11.90 for Hustler magazine, he left.

Dose no longer expected to see his creation again, but it turned out that the counterfeit penny was sold for $ 1000 at the Greg Kucher gallery (the cost of the coin is $ 100).

Sources and links

Sources of texts, pictures and videos

wikipedia.org - the free encyclopedia Wikipedia

coins-gb.ru - information site Coins of Great Britain

dic.academic.ru - dictionaries and encyclopedias on Academician

tolkslovar.ru - electronic explanatory dictionary

coins.zoxt.net - information site about coins

pro.lenta.ru - special project Lenta.Ru history of money

dengi-info.com - information and analytical newspaper Money

lady.webnice.ru - site Ladies' club

vk.com/irishcoin- Irish coins group Vkontakte social network

changes.biz - webmoney exchange service

russian-money.ru - site about coins and banknotes

kuremae.com - information and news resource

moneta-info.ru - information site about coins and money

grandars.ru - online economic encyclopedia of Grandars

kot-bayun.ru - fairy tales of the peoples of the world

tartan-tale.livejournal.com -blog in LiveJournal

Links to Internet services

forexaw.com - information and analytical portal for financial markets

google.ru is the largest search engine in the world

video.google.com - search for videos on the Internet via Google

translate.google.ru - translator from Google search engine

maps.google.ru - maps from Google to find the places described in the material

yandex.ru - the largest search engine in Russia

wordstat.yandex.ru - a service from Yandex that allows you to analyze search queries

video.yandex.ru - search for videos on the Internet through Yandex

images.yandex.ru - search for images through the Yandex service

maps.yandex.ru- maps from Yandex to search for places described in the material

finance.yahoo.com - data on the financial condition of companies

otvet.mail.ru - service of answering questions

Links to application programs

windows.microsoft.com - the site of the Microsoft corporation that created the Windows OS

office.microsoft.com - site of the corporation that created Microsoft Office

chrome.google.ru - a frequently used browser for working with sites

hyperionics.com - site for the creators of the HyperSnap screenshot program

getpaint.net - Free imaging software

etxt.ru - site of the creators of the eTXT Antiplagiat program

Article creator

vk.com/panyt2008 - Vkontakte profile

odnoklassniki.ru/profile513850852201- profile in Odnoklassniki

facebook.com/profile.php?id=1849770813- Facebook profile

twitter.com/Kollega7- Twitter profile

plus.google.com/u/0/ - profile on Google +

livejournal.com/profile?userid=72084588&t=I - blog in LiveJournal

British pound sterling is the official currency of Great Britain. Banking code - GBP (826). GBP stands for Great Britain Pound. ISO 4217 code.1 pound equals 100 pence. There are 5, 10, 20 and 50 pound notes in circulation; coins in 1, 2, 5, 10, 20, 50 pence, 1 and 2 pounds. Coins of 25 pence and 5 pounds are rare.

Banks of individual territories within the UK (three banks in Scotland and four banks in Northern Ireland) issue banknotes with their own designs. Formally, these banknotes must be accepted by all banks in Britain, but in practice, there are also cases of refusal.

Also, the pound sterling is a parallel currency in the crown lands of Guernsey, Jersey and the Isle of Man and legal tender for some British overseas territories: Gibraltar (its currency is the Gibraltar pound), the Falkland Islands (its currency is the Falkland Islands pound), Ascension Islands and Saint Helena, and also the Tristan da Cunha archipelago (its own currency for the last three pounds of Saint Helena).

The term sterling dates back to 775, when the Saxon states produced silver coins called sterling. 240 coins were minted from one pound of silver. Large payments were made in "pounds of silver sterling". This phrase was later shortened to "pounds sterling".

In modern English, the word pound is used to denote the money of Great Britain. To distinguish the British currency from the currencies of the same name in other countries, the full form of the pound sterling is used in official documents. In exchange practice, the name sterling has become widespread. In less formal texts, the term British pound is used. In colloquial speech, the word quid "quid" is used - chewing tobacco. Foreign exchange traders refer to the British pound sterling as a “cable”.

Until 1971, the ratios between monetary units were: 1 pound sterling = 4 crowns = 20 shillings = 60 groats = 240 pence = 960 farthings. Beginning in 1968, in England, they began to mint bargaining coins of 5, 10 and then 50 pence, which were supposed to contribute to the conversion of the monetary system to decimal.

Beginning in January 1971, the pound sterling was finally converted to a decimal monetary system, and to distinguish the new change coins, the words "New pence (penny)" were printed on them for more than 10 years.

Money in Great Britain is a means of payment, a store of value, and also performs many other functions, including the function of world money.

History of the pound sterling

The British pound sterling is the oldest currency in the world. Precious metals were widely used for its manufacture. Since 1066, silver sterling has been minted in Britain. In 1158, the sterling was introduced by Henry II as the British currency. The currency began to be called the pound in the second half of the 12th century. The first pounds included 12 shillings, each of which consisted of 20 pence. There was 2 forints in one penny. In other words, one pound sterling was equal to 240 pence, or 480 forints.

The one pound sterling coin was minted in 1489. Then the pounds were also called gold sovereigns - thanks to the image on the obverse of the king, that is, the sovereign of all subjects. The obverse depicts Henry VII sitting on the throne, and the reverse depicts the coat of arms of England. Sovereigns weighed 15.47 grams and were made of 994 standard gold.

In 1560, Elizabeth I carried out a monetary reform that avoided the depreciation of coins, but increased inflation. All old coins have been replaced with new ones.

In 1603 England and Scotland were united, but each state had its own government and currency. The Scottish pound caught up with the sterling, but experienced a much stronger devaluation, 12 Scottish pounds were equal to one pound sterling.

In 1694, the Bank of England began to issue paper pounds sterling - in the form of banknotes.

In 1707, after the unification of the two kingdoms and the formation of Great Britain, the Scottish pound was replaced by a sterling of the same value.

In 1816, the gold standard was established in Great Britain, the sovereign became the main coinage, which had 7.32 grams of pure gold.

In 1825, the Irish pound, which had been equal to sterling since 1701 at the rate of 13 Irish pounds = 12 pounds sterling, was replaced by sterling at the same rate.

The pound sterling held the leading position in the world economy as a reserve currency in the 18th and 19th centuries.

In 1940, an agreement signed with the United States equalized the pound to the US dollar in a ratio of 1 = 4.03. This exchange rate persisted throughout World War II and became part of the Bretton Woods system, which governed post-war exchange rates.

In 1971 England officially switched to the decimal system - every pound was equated to 100 pence. Until 1982, the inscription "New" was minted on the coins.

In June 1972, a “floating rate” was introduced, which was not supported by the Bank of England, but was determined solely based on the results of trading on the international foreign exchange market. In this regard, in 1976 the value of one pound sterling fell to less than two dollars.

The pound had its lowest reading in February 1985, when it stood at $ 1.05, before rising to $ 2 in the early 1990s.

Since 2007 - the pound exchange rate is 2.10 dollars, which allows the British currency to maintain the proud title of the most expensive in the world. England is justly proud of its currency. As a member of the Euro Union, the United Kingdom of Great Britain does not want to tie its economy to the EU currency and strongly supports its pound sterling.

BANKNOTES

Currently, there are four banknotes in circulation in the United Kingdom in denominations of 5, 10, 20 and 50 pounds sterling. Traditionally, the kings and queens of Great Britain are printed on the obverse of the banknote, now - Elizabeth II. On the flip side are outstanding Englishmen.

£ 5 banknote. Size: 135 x 70 mm.

On the reverse side, on the right, there is a portrait of Elizabeth Fry (reformer of the prison system in Great Britain), on the left - she is also reading books to prisoners at Newgate Prison in London. The predominant colors are turquoise, blue, brown and yellow.

£ 10 banknote. Size: 142 x 75 mm.

The obverse features Queen Elizabeth II.

The reverse side shows Charles Darwin (the author of evolutionary theory) and a hummingbird.

£ 20 banknote. Size: 149 x 80mm. Blue and purple bill.

The obverse features Queen Elizabeth II.

The reverse side features a portrait of the economist Adam Smith.

£ 50 banknote. Size: 156 x 85mm.

The obverse features Queen Elizabeth II.

On the reverse side - Matthew Bolton and James Watt.

Three Scottish banks have the right to issue and own banknotes, which circulate mainly in Scotland, although they are accepted for payment at a one-to-one rate in other parts of the United Kingdom. It is customary to depict portraits of famous immigrants from Scotland and castles on Scottish banknotes. For example, in 2005, the Royal Bank of Scotland, you issued a £ 50 note depicting Inverness Castle. Other denominations include the castles of Balmoral, Brodick, Glemis, Culzin and Edinburgh.
The Bank of Ulster also has a similar right.

Signs of the authenticity of the pound sterling:
1. Print quality. The print is very clear, all elements are clearly visible.
2. Watermark. When viewing the banknote against the light, a watermark in the form of a portrait of the Queen is visible.
3. Paper and relief printing. The banknotes are printed on special paper, which gives a unique feeling when touched: if you slide your finger across the banknote, you can feel the embossed print near the words "Bank of England" on the face of the banknote.
4. Metallic thread. A metal thread "implanted" into the paper is present on every banknote. On the £ 5, £ 10, £ 20 banknotes, the silver dashed line is on the back of the banknote, on the 50 banknote on the front. When viewed against the light, the thread turns into a solid dark line.
5. Hologram. When you tilt the banknote, the image on the hologram changes: from "Britain" to the digital designation of the denomination of the banknote.
6. UV protection. When viewing a banknote under ultraviolet radiation, one can see the denomination of the banknote.
7. Microtext. Using a magnifying glass, a line consisting of letters and numbers can be seen under the Queen's portrait.
8. The viewed image. The £ 20 (new issue) banknote has a preview image. When viewed under light, the image becomes complete. If you change the angle of view when examining a bill, in some rosettes the color of the image of Adam Smith will change, in other rosettes - the color of either the image of the pound sign or the number "20". Also, the banknote is equipped with relief images of the digital designation of the denomination, which are imprinted in three corners of the banknote.

The pound sterling is the most expensive currency in the world. There is no £ 100 denomination in England, as £ 50 is approximately 100 US dollars. Moreover, the British are suspicious of the fifty-pound bill, and its owner may even be suspected of money laundering. This is due to the fact that in England most purchases are made using cashless payments.

Coins

In 1968, the first decimal coins were issued in the UK. These were copper-nickel 5 and 10 pence coins, which were equivalent and common along with the 1 and 2 shilling coins that were in circulation at that time. In 1971, the transition to the decimal coin system was completed, with the introduction of the 1/2, 1 and 2 pence bronze coins.

In April 2008, the design of the issued coins was changed. New coins were released into circulation gradually, starting in the summer of 2008. The reverse of the new 1, 2, 5, 10, 20 and 50 pence coins depicts separate fragments of the Royal Shield, while the reverse of the new 1 pound coins depicts the entire shield. The new coins have the same characteristics (weight, composition, size) as the old ones, which continue to circulate.

For collection purposes, the 1 pound sterling silver coin is of interest, which was issued in most cases in small quantities.
Since 1986, special 2 pound coins have been minted with a constantly changing image. But you can safely use them as a means of payment.
There is also a gold sovereign coin. But there is no denomination on it, because precious metal coins are recognized depending on the size and content of gold. And the value is determined by the current price of gold.

International reserve currency

The pound sterling lost its position as the main reserve currency at the beginning of the last century. As of 2013, only 4% of gold and foreign exchange reserves are held in the form of the pound sterling, and yet it is currently the third reserve currency. Interest, which makes up the pound on the total reserve, has risen in recent years thanks to the stability of the British economy and government work, a steady rise in value against other currencies and relatively high interest rates compared to other major currencies such as the dollar, euro and yen.

The value of the pound sterling in relation to other currencies ensures the high development of the UK industry (in terms of gross domestic product, the country ranks seventh in the world).

The British pound is one of the main currencies in the Forex market. The UK maintains high interest rates, which makes the pound attractive for positional deals. In addition, the British macroeconomic indicators show better data than the euro area as a whole.

The British pound quotation is usually called a cable - in honor of the cable that was laid along the bottom of the Atlantic in order to transmit prices by telegraph from the Old World to the New and vice versa. Traditionally, the so-called reverse quotation is used for the pound, that is, the number of dollars included in one unit of another currency is indicated.

The following banknotes and coins are in circulation in the United Kingdom and the United States:

British banknotes:

1 pound sterling - one pound sterling (banknote name: a pound note). It is denoted in abbreviated form by the sign £, which is placed in front of the number, - £ 1.

5 pounds sterling - five pounds (£ 5) (note name: a five pound note)
£ 10 - ten pounds (£ 10) (note name: a ten pound note)
£ 20 - twenty pounds (£ 20) (note name: a twenty pound note)

British coins:

Halfpen - half penny / half a penny (coin name: a half penny). It is designated in abbreviated form by the letter "p", which is placed after the number, - 1/2 p.

1 penny - a penny = 1 p (colloquial one p)
2 pence - twopence [’tapens] / two pence = 2p (colloquial two p (coin name: a twopenny piece)
10 pence - ten pence = 10 p (coin name: a tenpenny piece)
50 pence - fifty pence = 50 p (coin name: a fifty pence piece)

I paid a penny (one p = 1 p) for it. I paid one penny for this.
The cheapest seats are fifty (pence) (fifty p = 50 p) each. The cheapest seats are 50p (each seat).
I was given one (pound) fifty (pence) change (£ 1.50). I was given change of one pound and fifty pence.
The return ticket is thirteen (pounds) twenty-seven (£ 13.27). A return ticket costs 13 pounds and 27 pence.

American banknotes:

1 dollar - a dollar (banknote name: a dollar bill). It is abbreviated with a $ sign, which is placed in front of the number, - $ 1.
2 dollars - two dollars ($ 2)
5 dollars - five dollars = $ 5 (banknote name: a five dollar bill)
20 dollars - twenty dollars = $ 20 (banknote name: a twenty dollar bill)
100 dollars - one / a hundred dollars = $ 100 (banknote name: a hundred dollar bill)
500 dollars - five hundred dollars = $ 500 (banknote name: a five handred dollar bill)
5,000 dollars - five thousand dollars = $ 5,000 (banknote name: a five thousand dollar bill)
10,000 dollars - ten thousand dollars = $ 10,000 (banknote name: a ten thousand dollar bill)

American coins:

1 cent (1/100 dollar) - a cent (coin name: a cent). It is denoted in abbreviated form by the sign ₵, which is placed after the number, - 1 ₵.

5 cents - five cents = 5 ₵ (coin name: a nickel)
10 cents - ten cents = 10 ₵ (coin name: a dime)
25 cents - twenty-five cents = 25 ₵ (coin name: a quarter)
50 cents / half dollar - half a dollar = 50 ₵ (coin name: a half-dollar note)

1 dollar - a dollar = $ 1 (name of the coin-banknote: a dollar bill). Such designations as $ .12 or $ .60, found in the registration of price tags, etc., indicate that there are no dollars, but only 12 or 60 cents.

Amounts in dollars and cents are indicated as follows: $ 25.04 (twenty-five dollars and four cents); $ 36.10 (thirty-six dollars and ten cents; $ 2,750.34 (two thousand seven hundred and fifty dollars and thirty-four cents).

GBP(£ symbol; bank code: GBP) is subdivided into 100 pence (singular: penny) and is the currency of the United Kingdom, Crown Dependent Territories (Isle of Man and Channel Islands) and British Outer Territories of South Georgia and the South Sandwich Islands, British Atlantic Territory and the Indian Oceans.

This article discusses the history of the pound sterling and its release in England, Great Britain and the United Kingdom. See also Manx pound, Jersey pound and Guernsey pound for more information. The Gibraltar pound, the Falkland Islands pound and the Saint Helena pound are independent currencies that adhere to the sterling rate.

The pound sterling currently accounts for the third largest share of the world's foreign exchange reserves, behind the US dollar and the euro. Pound streaming is the fourth exchange rate in foreign exchange markets after the US dollar, euro and Japanese yen.

Name

Full official name GBP(plural: pounds sterling) is used mainly in a formal context, and also when it is necessary to denote the currency used in the United Kingdom, as opposed to currencies of the same name. In other cases, the word is usually used lb.... The currency name is sometimes abbreviated to the word "sterling", especially in the wholesale financial markets, but not in the name of the amount; so, they say "payment is accepted in sterling", but never "it costs five sterling". Sometimes the abbreviations "ster" or "stg" are used. Term British pound widely used in less formal contexts, even though it is not the official name of the currency. Common slang name quid(plural quid).

The appearance of the term sterling dates back to 775, when the Saxon states issued silver coins called "sterling". 240 coins were minted from one pound of silver, which roughly equaled the weight of a troy pound. For this reason, large payments were made in "pounds of silver sterling". This phrase was later shortened to "pounds sterling". After the Norman conquest of England, the pound was divided into 20 shillings and 240 pence to simplify the calculations. For a detailed etymology of the word "sterling" see section 925 Sterling Silver.

Currency sign - the sign of the pound, originally with two cross bars ₤ , later the sign with one cross line became more common £ ... The pound sign comes from the old-printed letter "L", which stands for the abbreviation LSD - librae, solidi, denarii- which corresponds to pounds, shillings and pence in the original duodecimal monetary system. Libra was the original unit of weight in Rome, the word originated from Latin and meant "scales" or "balance". Banking currency code in the International Organization for Standardization 4217 - GBP (Great Britain pound). The abbreviation UKP is sometimes used, but it is incorrect. The Crown Dependent Territories use their own code: GGP (Guernsey Pound), JEP (Jersey Pound) and IMP (Isle of Man Pound). Stocks are often traded in pence, so traders can refer to pennies, GBX (sometimes GBp) when recording the stock price.

Division and other units

Decimal system

Since the transition to the decimal system in 1971, the pound sterling has been divided into 100 pence (until 1981 referred to in metallic money as the "new penny") The penny symbol is "p"; hence, an amount such as 50 pence (£ 0.50) is usually pronounced “50 pi” rather than “50 pence”. It also helped differentiate between new and old pence during the transition to the decimal system.

Decimal system

Before the decimal system, the pound was divided into 20 shillings, and each shilling consisted of 12 pence, which was 240 pence in the pound. "s" - this was the sign of the shilling. This is not the first letter of the word shilling, but the beginning of the Latin word solidus ( solid ) ... The penny symbol was the letter "d", from the French denier (denier), which comes from the Latin word denarius(denarius) (solidus and denarius were ancient Roman coins). A mixed sum of shillings and pence, such as 3 shillings and 6 pence, was designated "3/6" or "3s 6d" and was pronounced "three and six." 5 shillings was written as "5s" or, more commonly, "5 / -".

Coins of various denominations had and continue to have specific names such as "crown", "farthing / penny", "sovereign" and "guinea". Details can be found in the Pound Sterling Coins and List of British Coins and Notes.

History

After the adoption of the euro, sterling became the oldest currency in the world still in circulation.

Anglo-Saxons

Sterling's origins date back to the reign of the King of Mercia Offa, who introduced the silver penny. It was like a denarius in the new monetary system of Charlemagne's empire. As in the Carolingian monetary system, 240 pence weighed one pound (according to Charlemagne's pound), a shilling corresponded to Charlemagne's shilling and was equal to 12 denarii. At the time of the penny's appearance, it weighed 22.5 troy grains of pure silver (30 troy grains; about 1.5 grams), indicating that the pound of Mercia weighed 5,400 troy grains (the pound of Mercia was the basis for the Tower pound, which weighed 5,400 troy grains , which was 7,200 Tower Grains). At this time, the name sterling was not yet applied. The penny quickly spread among other Anglo-Saxon states and became the standard coin of the state that later became England.

Middle Ages

The early pennies were minted from the finest silver (as pure as possible). However, in 1158, King Henry II (who was called Tilby Penny) introduced a new system of minting coins. Coins were now minted from sterling silver (92.5%). Such silver became the standard and continues to be in the 20th century and is today called coin silver, in association with currency. Coin silver is heavier than pure silver (i.e. 0.999 / 99.9% pure, etc.) that was used in the past, and therefore coins made of such silver did not wear out as quickly as coins made of pure silver. The English currency was made exclusively from silver until 1344, when noble gold was successfully introduced into circulation. However, silver remained the legal sterling material until 1816. During the reign of Henry IV (1412-1421), the weight of a penny dropped to 15 grains of silver, and in 1464, a penny weighed 12 grains.

Tudor rule

During the reigns of Henry VIII and Edward VI, the minting of silver coins was sharply reduced, although in 1526 the pound was again equal to the troy pound of 5,760 grains. In 1544, silver coins were issued with only one third of silver and two thirds of copper, which is equal to 333 samples of silver or 33.3% pure silver. As a result, the coins looked coppery, but relatively pale in color. In 1552, a new coinage of 925 silver was introduced. However, the penny was reduced to 8 grains, which means that 60 shilling coins could be produced from 1 troy pound of 925 sterling silver. The standard silver was considered the "60-shilling standard", which lasted until 1601 when the "62-shilling standard" appeared, which reduced the weight of a penny to 7 grains. During this time, the size and value of gold coins changed significantly.

Accession of Scotland

In 1603 England and Scotland were united, but each state had its own government and currency. The Scottish pound caught up with the sterling, but experienced a much stronger devaluation, 12 Scottish pounds were equal to one pound sterling. In 1707, after the unification of the two kingdoms and the formation of Great Britain, the Scottish pound was replaced by a sterling of the same value.

The unofficial gold standard

In 1663, a new minting of gold coins was introduced, based on the 22-carat guinea. With a fixed weight of 44½ in relation to the troy pound since 1670, this value of coins varied until 1717, when it was fixed at 21 shillings (21 / -, 1.05 pounds). However, despite attempts by Sir Isaac Newton, Guardian of the Mint, to diminish the value of the guinea, this increased the value of gold relative to silver compared to other European countries. British merchants sent silver as payment overseas, while goods for export were paid for in gold. Subsequently, there was a flow of silver from the country and a flow of gold into the country, which led to the establishment of the gold standard in the UK. In addition to this, there was a chronic shortage of silver coins.

Establishment of modern currency

The Bank of England was formed in 1694, followed by the Bank of Scotland a year later. Both banks began issuing paper money, with the Bank of England gaining more importance after 1707. During the Revolutionary War and the Napoleonic Wars, Bank of England notes were legal tender and fluctuated in value relative to gold. The bank also issued silver tokens to alleviate the shortage of silver coins.

gold standard

In 1816, the gold standard was officially adopted, while the silver standard was reduced to 66 shillings (66 / -, £ 2.3), replacing silver coins with the issue of tokens (that is, reducing the value of the precious metal). In 1817, a sovereign was introduced. The coins were minted from 22 carat gold and contained 113 grains of gold, they replaced the guinea and became the standard British gold coins without changing the gold standard. In 1825, the Irish pound, which had been equal to sterling since 1701 at the rate of 13 Irish pounds = 12 pounds sterling, was replaced by sterling at the same rate.

During the 19th and early 20th centuries, the gold standard was adopted in many other countries. As a result, the rates of various currencies could be determined simply by the corresponding gold standards. The pound sterling was equal to 4,886 US dollars, 25.22 French francs (or the equivalent currencies in the Latin Monetary Union), 20.43 German marks or 24.02 Austro-Hungarian kronor. After the international monetary conference in Paris, the possibility of the United Kingdom joining the Latin Monetary Union was discussed, and the Royal Commission on the International Monetary System, having considered this possibility, decided against joining.

Adherence to the gold standard was suspended at the start of the war, when the Bank of England and Treasury notes became legal tender. Before World War I, the United Kingdom had one of the most developed economies in the world, with 40% foreign investment. However, by the end of the war, the country owed £ 850 million, mostly to the United States, at an interest costing the country 40% of all government spending. In an attempt to regain stability, a variation on the gold standard was introduced in 1925, according to which the currency was equal to the pre-war value of gold, although the currency could only be exchanged for an ingot of gold, not coins. This was abandoned on September 21, 1931, during the Great Depression, and sterling underwent an initial devaluation of 25%.

Empire use

Sterling was used throughout most of the British Empire. In some parts, it was used alongside the local currency. For example, the gold sovereign was legal tender in Canada despite the existence of the Canadian dollar. Several colonies and estates adopted the pound as their own currency. Australian, British West African, Cypriot, Fijian, Irish, Jamaican, New Zealand, South African and South Rhodesian pounds have appeared. Some of these pounds remained equal to the pound sterling throughout their existence (for example, the South African pound), while others lost their independence after the completion of the gold standard (for example, the Australian pound). These currencies and others associated with sterling made up the sterling area.

Bretton Woods Agreement on the Post-War Monetary System

In 1940, an agreement signed with the United States equalized the pound to the US dollar at £ 1 = $ 4.03. This exchange rate persisted throughout World War II and became part of the Bretton Woods system, which governed post-war exchange rates. Under constant economic pressure and despite months of assurances to the contrary, the government nevertheless lowered the value of the pound by 30.5% to $ 2.80 on September 19, 1949. This move resulted in the depreciation of other currencies against the dollar.

In the mid-1960s, the pound came under renewed pressure as the exchange rate against the dollar was deemed too high. In the summer of 1966, as the pound fell in the currency markets, the Wilson government tightened currency controls. Among the measures taken was a ban on tourists from taking more than 50 pounds out of the country, in 1979 the amount was increased. The pound was eventually reduced by 14.3% to $ 2.40 on November 18, 1967.

Switching to decimal system

On February 15, 1971, the United Kingdom switched to decimal, replacing the shilling and penny with a single coin, the new penny. The word "new" has ceased to be used after 1981.

Changes in the value of the pound

With the fall of the Bretton Woods system - British currency dealers played an important role in this, which created a solid market for the Eurodollar, which made it difficult for the government to maintain the gold standard of the US dollar - the pound exchange rate fluctuated in the early 1970s and therefore caused the exchange rate to rise in the market ... The sterling zone came to an end during this time when most of its members also opted for a free currency against the pound and dollar.

In 1976, another crisis followed when it became known that the International Monetary Fund (IMF) believed that the pound should be equal to $ 1.50, and as a result, the pound fell to $ 1.57, and the government decided to borrow $ 2.3 billion. pounds from the IMF. In the early 1980s, the pound advanced to the $ 2 level as interest rates rose in response to monetary planning policies, and a high exchange rate was believed to be the cause of the deep decline in 1981. The pound had its lowest reading in February 1985, when it stood at $ 1.05, before rising to $ 2 in the early 1990s.

Following the German mark

In 1988, Margaret Thatcher's government finance minister, Nigel Lawson, felt that the pound should "obscure" the West German mark, which would inadvertently spike inflation as the economy grew rapidly due to inappropriately low interest rates. (For ideological reasons, the Conservative government has abandoned alternative mechanisms to control its boom, and former Prime Minister Edward Heath has described Lawson as a "one-club golfer."

Following the European currency unit

On October 8, 1990, the Conservative government decided to join the European Exchange Rate Mechanism (ERM), with a pound equal to 2.95 deutsche marks. However, the country was forced to leave the system on "Black Wednesday" (September 16, 1992), as the British economy led to the volatility of the exchange rate. Stock trader George Soros became famous for earning about $ 1 billion from reducing the value of the pound.

On Black Wednesday, interest rates jumped from 10% to 15% in an unsuccessful attempt to stop the pound from falling below the level of European currencies. The exchange rate fell to 2.20 German marks. Supporters of the depressed pound / deutsche mark gained support as the low pound supported export trade and contributed to economic prosperity in the 1990s. Since the beginning of 2005, the pound / euro rate has returned to an average of approximately £ 1.00: € 1.46, which is the equivalent of 2.85 German marks.

Following target inflation rates

In 1997, the newly elected Labor government transferred the responsibility for day-to-day control of interest rates to the Bank of England (a policy originally pursued by the Liberal Democrats). The Bank is now responsible for setting its base interest rate in order to keep inflation at the CPI level very close to 2%. As soon as CPI inflation is one percent above or below the target, the Governor of the Bank of England should write an open letter addressed to the Treasury Secretary, which explains the reasons for such changes and outlines the measures that will be taken to bring the inflation rate back to 2% - noah norm. On April 17, 2007, the inflation rate of the consumer price index was 3.1% (inflation of the retail price index was 4.8%). Thus, for the first time, the Bank manager had to publicly explain to the government why the inflation rate was one percent higher than the norm.

Euro

As a member of the European Union, the United Kingdom can accept the euro as its currency. However, the issue remains politically controversial, in no small part because the United Kingdom was forced to abandon the previous mechanism for regulating the exchange rates of European countries (see above), entering into a system with an incorrectly fixed exchange rate. Prime Minister Gordon Brown, while still minister of finance, ruled out the adoption of the euro in the foreseeable future, saying that the decision not to join is the right one for Britain and Europe.

Former Prime Minister Tony Blair's government has pledged to hold an open referendum to decide whether to join and conduct the "Five Economic Tests" to ensure that the adoption of the euro will have a national interest. In addition to this internal (national) criterion, the United Kingdom had to accept the economic conditions for EU convergence (Maastricht conditions) before allowing the transition to the euro. The United Kingdom's annual government GDP deficit is currently above a certain threshold. In February 2005, 55% of the population in the United Kingdom was against the adoption of the euro, and 30% were in favor. The idea of ​​replacing the pound with the euro has caused controversy in British society because of the pound's association with British sovereignty and because, according to some critics, this could lead to suboptimal interest rates that would hurt the British economy.

The pound was not included in the second European exchange rate mechanism (ERM II) after the introduction of the euro. Denmark and the United Kingdom are both countries that have renounced the adoption of the euro. Formally, all other EU members must accept the euro; however, this could be postponed indefinitely (as in the case of Sweden) by the refusal to join the second European exchange rate mechanism. The Conservative Party in Scotland argues that Scotland believes that the adoption of the euro means the end of the existence of geographically significant notes, since the European Central Bank does not allow the existence of national or subnational types of notes.

The Scottish Nationalist Party does not see this as a significant problem, since an independent Scotland would have its own national coins, and the party is pursuing a policy of introducing a single currency. On January 1, 2008, Akrotiri and Dhekelia, two territories on the island of Cyprus under British sovereignty, began using the euro (along with the rest of the Republic of Cyprus).

Current influence

Although the pound and the euro are independent of each other, it happens that they have been used together for a long time, but since mid-2006 this ratio has weakened. Concerns about inflation in the United Kingdom prompted the Bank of England to raise interest rates sharply in late 2006 and throughout 2007, resulting in the most significant appreciation of the sterling against the euro since January 2003. This set off a knock-on effect in other major currencies, with the pound hitting its highest value in 15 years against the US dollar on April 18, 2007, surpassing the $ 2 mark a day earlier for the first time since 1992. Since that time, the pound has continued to strengthen its position against the dollar, like many other world currencies, and on November 7, 2007, reached the level of 2.11610 dollars for the first time in 26 years. However, since the end of 2007, the pound began to decline significantly against the euro, albeit not as sharply as the dollar, which fell below € 1.25 for the first time in April 2008.

Coins

Decimal system

The silver penny was the main and often the only coin in circulation from the 8th to the 13th century. Although smaller coins were minted than pennies (see farthing and halfpenny), chopped half and quarter pennies were more common as bargaining chips. Gold coins were minted in small numbers, and the gold penny (worth 20 silver pennies) was rare. However, the 4p silver coin appeared in 1279, and the half-value coin followed in 1344. In 1344, the minting of gold coins was also established with the introduction (after the gold florin did not come into use) a noble in value of 6 shillings 8 pence, together with a half and a quarter of a noble. The reforms of 1464 marked a downgrade in the value of coins, both silver and gold, and the noble was renamed rayol and was valued at 10 silver shillings, and the angel coin was equated to 6 shillings 8 pence.

During the reign of Henry VII, two important coins were introduced, the shilling (known as the teston) in 1487 and the pound (known as the sovereign) in 1489. In 1526, several new denominations of gold coins were added, including the crown and half crown in 5 shillings and 2 shillings 6 pence. The reign of Henry VIII (1509-1547) saw a significant decline in coin value, which continued during the reign of Edward VI (1547-1553). However, this decline was halted in 1552 and new silver coins were introduced, including coins for 1, 2, 3, 4 and 6 pennies, 1 shilling, 2 shillings, 6 pence, and 5 shillings. During the reign of Elizabeth I (1558-1603), coins were added in denominations of ¾ and 1½ pennies, although these denominations did not exist for a long time. Gold coins - half crown, crown, angel, half sovereign and sovereign. During the reign of Elizabeth, a horse-drawn screw press was also introduced to produce the first grooved coins.

After the arrival of the Scottish king James VI to the English throne, the minting of new gold coins was introduced, which included a ryol with spurs (15 shillings), a unite (20 shillings) and a ryol with a rose (30 shillings). Laurel in denomination of 20 shillings followed in 1619. The first metal coins, pewter and copper farthing were also introduced. Copper halfpenny coins followed during the reign of Charles I. During the English Civil War, coins were produced under siege conditions and often had unusual denominations.

Following the restoration of the monarchy in 1660, coinage was reformed and forged coins were produced in 1662. The guinea appeared in 1663 and was soon followed by coins in denominations of ½, 2 and 5 guineas. Silver coins were denominations of 1, 2, 3, 4 and 6 pennies, 1 shilling, 2 shillings, 6 pence and 5 shillings. Due to the widespread export of silver in the 18th century, the production of silver coins gradually declined, the krone and half-crown were not minted after the 1750s, the 6p and 1 shilling coins were discontinued in the 1780s. The response was the introduction of copper coins in denominations of 1 and 2 pennies and a gold ⅓ guinea in denominations of 7 shillings in 1797. The Copper Penny was the only coin to last the longest.

To reduce the shortage of silver coins, from 1797 to 1804, the Bank of England issued Spanish dollars (8 reales) and other Spanish coins and coins of the Spanish colonies. The king's head was depicted on small coins. These coins were used until 1800 at a rate of 4 shillings 9 pennies for 8 reales. After 1800 the exchange rate became 5 shillings for 8 reais. The bank also issued 5 shillings silver tokens (modeled on Spanish dollars) in 1804, followed by 1 shilling 6 pence and 3 shilling tokens from 1811 to 1816.

In 1816, a new coinage was introduced with denominations of 6 pennies, 1 shilling, 2 shillings, 6 pence and 5 shillings. The crown was produced only periodically until 1900. This was followed by a new system of minting gold coins in 1817, which included coins in denominations of 10 shillings and 1 pound, which were called half sovereigns and sovereigns. The silver 4 penny coin was reintroduced in 1836, followed by the 3 penny coin in 1838 and the 4 penny coin, which was minted only for use in the colonies after 1855. The florin was introduced in 1848 in denominations of 2 shillings, followed in 1887 by the double florin, which did not last long. In 1860, copper was replaced by bronze in the production of farthing, halfpenny and penny.

During World War I, the production of the half sovereign and the sovereign was temporarily suspended, and although the gold standard was restored, coins were not widely adopted again. In 1920, the silver standard, from 1552 it was 925 sterling silver, dropped to 500. In 1937, the nickel brass coin was introduced in denominations of 3 pennies, the last silver 3 pennies were issued seven years later. In 1947, the remaining silver coins were replaced with cupronickel. Inflation led to the discontinuation of the minting of farthing in 1956 and its withdrawal from circulation in 1960. In an effort to move to the decimal system, halfpenny and half crown were withdrawn from circulation in 1969.

Decimal system

The first decimal coins were introduced in 1968. These were nickel silver coins in denominations of 5 and 10 pennies, which were equivalent and were used along with coins of 1 and 2 shillings. The 50 Penny Curved Equilateral Heptagonal Cupronickel coin was replaced by the 10 Tishilling Bail in 1969. The transition to the decimal system was completed when it was adopted in 1971, with the introduction of the ½, 1 and 2 penny bronze coins and the elimination of the 1 and 3 penny coins. The 6 penny coin was in circulation until 1980 with a value of 2½ pounds. In 1982, the word "new" was dropped to refer to coinage and the 20 penny coin was introduced, followed by the introduction of the £ 1 coin in 1983. The ½ penny coin was issued in 1983 and discontinued in 1984. In the 1990s, bronze was replaced by copper-plated steel and a decrease in the size of 2, 10 and 50 pennies.
The old 1 shilling coins, which continued to be used and were equal to 5 pennies, were withdrawn from circulation in 1991, following the reduction in the size of the 5 penny coin, 2 shilling coins were withdrawn from circulation in a similar way in 1993. British 2 pound bimetallic coins. The modern coin (1997-present 2 £ coin) was introduced in 1998.

Currently, the oldest coins in circulation in the United Kingdom are the 1p and 2p copper coins, introduced in 1971. Prior to the transition to the decimal system, small coins could not be older than a hundred years or more, with the image of any of the five monarchs on the obverse.

In April 2008, an extensive upgrade of the coins was announced, which will be issued in the summer of 2008. The new reverse of the 1, 2, 5, 10, 20 and 50 penny coins will feature pieces of the royal shield, and the new 1 pound coin will have a whole shield.

Banknotes

The first paper sterling was issued by the Bank of England shortly after its founding in 1694. The denominations were originally indicated on banknotes at the time of printing. From 1745, banknotes were printed in denominations ranging from £ 20 to £ 1,000, with the addition of shillings at the odd number. The £ 10 notes appeared in 1759, followed by the £ 5 notes in 1793 and the £ 1 and £ 2 notes in 1797. The two lowest denominations were abolished after the end of the Napoleonic Wars. In 1855, banknotes were printed in full in denominations of £ 5, £ 10, £ 20, £ 50, £ 100, £ 200, £ 300, £ 500 and £ 1000.

The Scottish Bank began issuing banknotes in 1695. Although the Scottish pound was still the national currency of Scotland, the banknotes issued were in sterling denomination and went up to £ 100. From 1727, the Royal Bank of Scotland also began issuing banknotes. Both banks issued coins with the face value of guineas, as well as pounds. In the 19th century, regulations limited the issue of the smallest denomination of a banknote issued by a Bank of Scotland to £ 1, a note not permitted in England.

With the spread of sterling to Ireland in 1825, the Bank of Ireland began issuing sterling notes, followed by other Irish banks. These notes included the familiar denominations of 30 shillings and 3 pounds. The highest denomination of banknotes issued by an Irish bank was 100 pounds.

In 1826, banks 65 miles (105 km) from London were allowed to issue their own paper money. From 1844, new banks were not allowed to issue banknotes in England and Wales, but not in Scotland and Ireland. Consequently, the number of private banknotes decreased in England and Wales and increased in Scotland and Ireland. The last English private banknotes were issued in 1921.

In 1914, the Treasury Department introduced banknotes for 10 shillings and £ 1 to replace gold coins. These banknotes were in circulation until 1928, when they were replaced by banknotes of the Bank of England. Ireland's independence has reduced the number of Irish banks issuing sterling notes to five in Northern Ireland. The Second World War had a radical impact on the issuance of banknotes of the Bank of England. Fearing the Nazi mass production of counterfeit money (see Operation Bernhard), all banknotes in denominations of £ 10 and above were discontinued, leaving only 10 shillings, £ 1 and £ 5 notes for issue. The issue of banknotes in Scotland and Northern Ireland was not affected, with denominations of £ 1, £ 5, £ 10, £ 20, £ 50 and £ 100 remaining.

The Bank of England reintroduced the £ 10 notes in 1964. In 1969, the 10 shillings note was replaced by the 50 penny coin as part of preparations for the decimal system. The Bank of England £ 20 notes were reintroduced in 1970, followed by £ 50 notes in 1982. The subsequent appearance of the £ 1 coin in 1983 allowed the Bank of England £ 1 notes to be abolished in 1988. The Bank of England was followed by the Bank of Scotland and the Bank of Northern Ireland, only the Royal Bank of Scotland continued to issue notes of this denomination.

Legal tender and regional issues

Legal tender in the United Kingdom (according to the Royal Mint) means “that a debtor cannot be prosecuted for non-payment if it pays with legal tender in court. This does not mean that any transaction must be made using legal tender or only up to the amount set by law.Both parties can agree to accept any form of payment, legal tender or otherwise, as they wish. the exact amount, since further changes cannot be requested. " In the United Kingdom, £ 1 and £ 2 coins are legal tender for any amount, while other coins are legal tender for a limited amount only. In England and Wales, Bank of England notes are also legal tender for any amount. Scotland and Northern Ireland today do not have legal tender notes, although the Bank of England 10 shillings and £ 1 notes were, like the Scottish notes, during World War II (Money Protection Act 1939; this status was abolished on January 1, 1946). However, the banks made contributions to the Bank of England to cover the amount of their banknotes issued. In the Channel Islands and the Isle of Man, local banknotes in their respective jurisdictions are legal tender. Banknotes for Scotland, Northern Ireland, Channel Islands and Isle of Man are sometimes not accepted in shops in England. UK store owners can reject any type of payment, even if it is legal tender, as there is no debt in the offer of payment at the same time as there is an offer of goods or services. Legal tender is accepted when paying a restaurant bill or other payment, but usually some other method (such as a credit card or check) is used to pay. Commemorative coins in denominations of £ 5 and 25 pennies ("krone"), which are rarely seen, are also legal tender, as are the bullion coins issued by the mint.

About the value of British money

In 2006, the House of Commons library issued a document that included a pound value index for each year from 1750 to 2005, where the value of the pound in 1974 was 100. (This was a new version of documents previously published in 1998 and 2003). Considering the period from 1750 to 1914, the document states: "Despite the years of significant price fluctuations until 1914 (depending on the harvest, wars, etc.), there has been no prolonged rise in prices since 1945." It is further stated that "Since 1945, prices have risen in aggregate 27 times a year later." The index was 5.1 in 1750, peaking at 16.3 in 1813 before declining rapidly after the end of the Napoleonic Wars to 10.0 and maintaining the value in the 8.5-10.0 range at the end of the nineteenth century. The index was 9.8 in 1914 and peaked at 25.3 in 1920, before falling to 15.8 in 1933 and 1934 - prices were only three times higher than 180 years ago. Inflation had a strong effect during and after World War II - the index was 20.2 in 1940, 33.0 in 1950, 49.1 and 1960, 73.1 in 1970, 263.7 in 1980, 497.5 in 1990, 671.8 in 2000 and 757.3 in 2005.

Value in relation to other currencies

The pound can be freely bought and sold in foreign exchange markets around the world and therefore fluctuates in value relative to other currencies (rising when traders buy, falling when selling). This arrangement is traditional among the world's highest-valued major currency units. On April 19, 2008, £ 1 was equal to US $ 1.99 or € 1.26.

• Historical exchange rates (since 1990) can be found in the Exchange Rate section of the United Kingdom Economy Accounting List.
• you can see the current wholesale exchange rates of the sterling in relation to other currencies.

The pound as the main international reserve currency

Sterling is used as a reserve currency worldwide and is currently ranked as the third largest reserve currency. Interest, which makes up the pound on the total reserve, has risen in recent years thanks to the stability of the British economy and government work, a steady rise in value against other currencies and relatively high interest rates compared to other major currencies such as the dollar, euro and yen.