Banknotes (banknotes) of pounds sterling are banknotes made of paper, issued by the Bank of England.
In free circulation there are and are issued banknotes of denominations: 5, 10, 20 and 50 pounds.
Like all banknotes, pound sterling banknotes have elements that protect them from forgery. We invite you to familiarize yourself with them in order to know how to distinguish real pounds from fake ones:
How to check pounds
Check out all the security features of pound sterling banknotes:
- Relief print. All banknotes are printed on special paper using special inks. By running your finger over the surface of the banknote, you will feel that in some places, such as, for example, the inscription "Bank of England", the ink protrudes above the surface.
- Metal thread. A metal thread is embedded in the paper of pound notes of all denominations. On the reverse side of the bill, it looks like a silver dotted line, and if you look at the bill in the light, the thread is visible as a continuous dark line.
- Watermark. Looking at the banknote against the light, you will see a portrait of the Queen.
- Print quality. All lines and colors must be clear and clean. Pound sterling notes must not have ink stains or bleed around the edges.
- Microtext. Using a magnifying glass, carefully look at the inscription above the portrait of the Queen - you will see the denomination of the banknote printed in very small letters and numbers.
- UV properties. When looking at pound sterling notes under a UV light source, the note's denomination, as well as security fibers randomly spread in the paper, appear pink and green. The rest of the bill image appears dimmer. Also five windows of 3D tape on the banknote glow bright green.
- Hologram. On the front side of banknotes 5 and 10 pounds there is a hologram. When the banknote is tilted, the image of Britain changes to the value of the denomination of the banknote. On a banknote 20 pounds the hologram is made in the form of a strip with alternating images. When the banknote is tilted on one hologram, you can see the rainbow portrait of Adam Smith, and on the other, the rainbow sign £ changes to the number 20 and vice versa.
- Transparent sign £. On banknotes 20 and 50 pounds part of the £ sign is depicted on the front side, and part on the back. If you look at the bill in the light, the two parts of the image form the £ sign.
- 3D tape. On the banknote £50 ribbon is woven into the paper. It has five windows with images of the £ sign and the number 50. When the banknote is tilted from side to side, the images move up and down. And when the banknote is tilted up and down, the images move from side to side, and the £ sign changes to the number 50 and vice versa.
Pound denominations
Banknotes of different denominations have a different set of security features and their different locations:
The British pound sterling is the official currency of Great Britain. Bank code - GBP (826). GBP stands for Great Britain Pound. Code ISO 4217. 1 pound equals 100 pence. In circulation there are banknotes of 5, 10, 20 and 50 pounds; coins of 1, 2, 5, 10, 20, 50 pence, 1 and 2 pounds. Coins of 25 pence and 5 pounds are rare.
Banks of certain territories within the UK (three banks of Scotland and four banks of Northern Ireland) issue banknotes with their own design. Formally, these banknotes must be accepted by all banks in Britain, but in practice there are 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 (their own currency is the Gibraltar pound), the Falkland Islands (their own currency is the pound of the Falkland Islands), the Ascension Islands and Saint Helena, and also the archipelago of Tristan da Cunha (its own currency of the last three pounds of St. Helena).
The appearance of the term sterling dates back to 775, when silver coins called "sterlings" were issued in the Saxon states. 240 coins were minted from one pound of silver. Large payments were made in "pounds of silver coins, sterling." This phrase was later shortened to "pounds sterling".
In modern English, the word pound is used to refer to the money of Great Britain. To distinguish the British currency from the currencies of the same name in other countries, official documents use the full form of the pound sterling. In exchange practice, the name sterling has become widespread. In less official texts, the term British pound appears. In colloquial speech, the word quid is used - "quid" - chewing tobacco. Currency traders refer to the British pound as a "cable".
Until 1971, the ratios between monetary units were as follows: 1 pound sterling = 4 crowns = 20 shillings = 60 groats = 240 pence = 960 farthings. Starting in 1968, in England, change coins of 5, 10 and then 50 pence began to be minted, which were supposed to contribute to the transfer of the monetary system to decimal.
Beginning in January 1971, the pound sterling was finally converted to a decimal monetary system, and in order to distinguish the new change coins, the words "New pence (penny)" were printed on them for more than 10 years.
British money is a means of payment, a means of accumulation, and also perform 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 English 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 were 2 forints in one penny. In other words, one pound sterling was equal to 240 pence, or 480 forints.
The one pound 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 depicted Henry VII sitting on the throne, on the reverse - the coat of arms of England. Sovereigns weighed 15.47 grams and were made of 994 gold.
In 1560, Elizabeth I carried out a monetary reform, which avoided the depreciation of coins, but increased inflation. All old coins were replaced with new ones.
In 1603, England and Scotland were united, but each state had its own governments and currencies. The Scottish pound equaled the sterling, but experienced a much stronger devaluation, 12 Scots pounds equaled 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 monetary unit, which had 7.32 grams of pure gold.
In 1825, the Irish pound, which since 1701 had been equal to sterling at a rate of 13 Irish pounds = 12 pounds sterling, was replaced by sterling at the same rate.
The pound sterling dominated the world economy as a reserve currency in the 18th and 19th centuries.
In 1940, an agreement signed with the US equalized the pound with the US dollar at a ratio of 1 = 4.03. This rate was maintained throughout World War II and became part of the Bretton Woods system that governed post-war exchange rates.
In 1971, England officially switched to the decimal system - each pound became equal 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 by the results of trading on the international currency market. In this regard, in 1976 the value of one pound sterling fell to less than two dollars.
The pound reached its lowest point in February 1985 at $1.05 before rising to $2 in the early 1990s.
Since 2007, the pound exchange rate has been 2.10 dollars, which allows the British currency to maintain the proud title of the most expensive in the world. England is rightfully proud of its currency. As a member of the European 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
There are currently four banknotes in circulation in the United Kingdom in denominations of £5, £10, £20 and £50. Traditionally, the kings and queens of Great Britain are printed on the front side of the banknote, currently - Elizabeth II. On the back - outstanding British.
£5 note. Size: 135 x 70 mm.
On the reverse side on the right is a portrait of Elizabeth Fry (a reformer of the prison system in the UK), on the left - she is reading books to prisoners in Newgate Prison in London. The predominant colors are turquoise, blue, brown and yellow.
10 pounds sterling note. Size: 142 x 75 mm.
The face depicts Queen Elizabeth II.
The reverse side depicts Charles Darwin (author of evolutionary theory) and a hummingbird.
Banknote of 20 pounds sterling. Size: 149 x 80 mm. Blue-violet banknote.
The face depicts Queen Elizabeth II.
The reverse side features a portrait of the economist Adam Smith.
£50 note. Size: 156 x 85 mm.
The face depicts Queen Elizabeth II.
On the reverse side are Matthew Bolton and James Watt.
Three Scottish banks have the right to issue their own currency, which are in circulation 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 people from Scotland and castles on Scottish banknotes. For example, in 2005 the Royal Bank of Scotland issued a £50 note featuring Inverness Castle. Banknotes of other denominations feature Balmoral, Brodick, Glemis, Culzean and Edinburgh castles.
The Bank of Ulster 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, when touched, gives a unique feeling: if you run your finger over the banknote, you can feel the relief printing near the words "Bank of England" on the front of the banknote.
4. Metal thread. A metal thread “implanted” into the paper is present on every banknote. On banknotes of 5, 10, 20 pounds sterling, a dotted line of silver color is located on the back of the banknote, on a banknote of 50 - on the front. When viewing a banknote 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 banknote denomination.
6.UV protection. When viewing a banknote under ultraviolet light, the denomination of the banknote can be seen.
7. Microtext. Using a magnifying glass, you can see under the portrait of the Queen a line consisting of letters and numbers.
8. Image being viewed. The £20 note (new issue) has a viewable image. When viewed against the light, the image becomes complete. If you change the angle of view when examining a bill, in some sockets the color of the image of Adam Smith will change, in other sockets - 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 printed in three corners of the banknote.
The pound sterling is the most valuable currency in the world. There is no £100 denomination in England, as £50 is approximately 100 US dollars anyway. Moreover, the British are also suspicious of fifty-pound notes, its owner may even be suspected of money laundering. This is due to the fact that in England, most purchases are made using non-cash payments.
COINS
In 1968, the first decimal coins were issued in the UK. These were cupro-nickel coins of 5 and 10 pence, which were equivalent and common along with the 1 and 2 shilling coins that were then in circulation. In 1971, the decimalisation was completed, with the introduction of bronze 1/2, 1 and 2 pence coins.
In April 2008, the design of issued coins was changed. New coins were released into circulation gradually, starting in the summer of 2008. On the reverses of the new 1, 2, 5, 10, 20 and 50 pence coins, separate fragments of the Royal Shield are depicted, and on the reverse of the new 1 pound coins, the entire shield is depicted. The new coins have the same characteristics (weight, composition, size) as the old coins that continue to circulate.
For collection purposes, of interest is the £1 silver coin, which was issued in most cases in a small circulation.
Since 1986, special 2-pound coins with a constantly changing image have been minted. But you can safely use them as a means of payment.
There is also a gold coin in the form of a sovereign. But there is no denomination on it, because coins made of precious metal are recognized depending on the size and gold content. And the cost 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 foreign exchange reserves are held in the form of the pound sterling, and yet it is currently the third reserve currency. The pound's interest on the general reserve has risen in recent years thanks to the stability of the British economy and government, the continued appreciation of 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 industry in the UK (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 transactions. In addition, British macroeconomic indicators show better data than the euro area as a whole.
The quotation of the British pound 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 back. 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.
There are 100 pence in one pound. Designation £, abbreviation GBP. If we talk about the world's foreign exchange reserves, today the currency ranks third, behind only the euro and the dollar.
In foreign markets, it is the fourth exchange currency after the dollar, euro and yen. Also, the pound sterling is used as a reserve currency around the world, which is affected by the stability of the UK economy.
History, origin of the name and designation
The English pound is denoted by this symbol - £, but few people know what it means. If you look closely, it is the letter L. But there is no logic between "Pound Sterling" and the letter L. The fact is that a pound is a measure of weight, and sterling is an old English coin. And the pound sterling is like a kilogram of kopecks. That is, earlier, when a whole pound of such sterling was collected, they were already considered a separate unit. Later, the Bank of England introduced such a monetary unit as the pound sterling, before that it did not exist. Let's return to the designation, the fact is that the pound is also an ancient Roman measure of weight, but it was called differently in Latin - libra. The English currency, however, is called "Pound" for some reason. In Latin, there was an expression "libra pondo", which meant "a pound of weight", that is, libra is a pound, and pondo is a weight.
Banknotes and coins
English money is issued:
- in coins - 1, 2, 5, 10, 20 and 50 pence, as well as 1 pound and 2 pounds;
- in banknotes - 5 pounds (in 2017, 5 pounds of a new sample appeared, the paper has completely changed, the polymer material is less wrinkled, does not tear, is protected from moisture), 10, 20 and 50 pounds.
Fifty pounds is the highest denomination of a banknote in England, and you can’t get it just like that, only if you specifically ask for it at the bank. The bills themselves are quite large, when compared with the euro, the pounds are both wider and longer. As in any country, in England there are many coins with a rare pattern, which are collected by professional numismatists and just amateurs, most of the 50 pence were issued during the London Olympics, all on a sports theme, almost all sports are depicted on the coins. There are also coins that are dedicated to a certain significant date. The secret of English money is that, having collected a certain number of coins with a certain pattern, you can lay out the coat of arms of England from them.
The first paper banknotes appeared at the turn of the 17th and 18th centuries, when the Bank of England was founded. Now banknotes are issued by 8 banks, which is why their design is different. There is one bank in England, three banks in Scotland, and four banks in Northern Ireland. In 2017, a new £5 note entered circulation in the UK. This money is much stronger and more durable, besides it is much harder to counterfeit. The main advantage of the new banknotes is that they have a longer service life, since the life of old paper banknotes is only 1.5-2 years, and new banknotes - 5 years. Counterfeiter protection also plays a role. To date, those who counterfeit banknotes do not have such technologies to exactly repeat the new plastic bill. By the way, Haiti, Costa Rica and the Isle of Man became pioneers in issuing polymer money back in 1983. But the bills did not take root there, because due to the hot and humid climate, the paint began to peel off.
The downside of the introduction of the new banknotes is that bankers and shops will have to spend more than £200 million to accommodate the new money for ATMs and cash desks. In addition, for the production of not paper, but polymer banknotes, it is necessary to launch new equipment, but in the end, according to some experts, plastic will cost more profitably than paper, taking into account the service life, and will certainly be cheaper than metal. Following the first bill, a plastic banknote of 10 pounds is already coming out, with the image of the writer Jane Austen. 20 pounds are planned to be released in 2020, and the old five pound notes (paper) completely went out of circulation in May 2017. The circulation of the first plastic banknotes in the UK is approximately 440 million copies.
The Bank of England will stop issuing £10 paper notes from 1 March 2018. This was announced on Tuesday in his official press release.
Following the successful launch on 14 September 2017 of the new £10 note featuring Jane Austen, the Bank of England will retire the old £10 note featuring Charles Darwin on 1 March 2018. It is noted that after this period the bills will be withdrawn from circulation, and they can be exchanged for new ones at the Bank of England itself.
In mid-September, a new £10 banknote made of synthetic polymers was introduced into circulation in the UK. The "First Lady of English Literature" banknote, whose 200th death anniversary is celebrated this year, is 15% smaller than the Charles Darwin (1809-1882) £10 note currently in circulation. There are raised dots in the upper left corner of the banknote, which should allow blind people to easily distinguish its denomination.
Banknote of a new sample
The resin surface depicts Austin's writing desk, as well as the manor of the author's brother's Godmersham Park estate, which Jane visited many times and which inspired her to write many works.
Also printed on the banknote is Miss Bingley's phrase from the novel Pride and Prejudice, published in 1813: "Frankly speaking, I do not know of pleasures like reading." However, the fact that the choice of the Bank of England was stopped precisely on this phrase caused sharp criticism from fans of Austen's work.
They expressed bewilderment that next to the portrait of the writer is not her own quote, but the statement of one of the characters in the work. In addition, according to them, Miss Bingley is one of the most unpleasant characters in the novel, who actually does not like to read, but says it in order to impress.
After the previously circulating five-pound notes with a portrait of England's prison reformer Elizabeth Fry were withdrawn from circulation, Austen's portrait will become the only female image on money in the UK after the portrait of Queen Elizabeth II.
The choice towards polymer banknotes
The Bank of England made the decision to increase the volume of banknotes on polymers in September 2015 after a thorough comparative analysis of the degree of protection of banknotes made from this material from the potential threat of counterfeiting was carried out. After three years of study, the British central bank concluded that their level of security is higher than that of banknotes made on a more traditional cotton basis.
Plastic banknotes are made from a thin, flexible and transparent polymer film using special ink layers on the front and back sides. As the Bank of England notes, water-repellent polymer banknotes are neither wet nor dirty.
- The cost of introducing a new pound sterling in the UK could be passed on to consumers
Their wear life is at least twice as long as cotton ones, since they do not tear. Since water does not pose much of a threat to these banknotes, they are even able to withstand washing at a temperature of 90 degrees Celsius. Forging plastic money is not easy, as they have a copy protection in the form of so-called transparent windows that pass through the polymer and ink layers and allow you to see through the banknote.
The only drawback of such banknotes is the presence of solid animal fat in the polymer granules used in the manufacture of the polymer substrate. This circumstance last year became a reason for protest on the part of vegetarians and representatives of a number of religious organizations.
The front side of the banknote shows a portrait of Elizabeth II. Additional security features include a transparent window with a portrait of the queen, at the top of the banknote there is a hologram of the crown that changes color at different angles of inclination, the Winchester Cathedral is golden, next to it is a feather that changes color from orange to purple.
Below is a hologram changing the inscription "Ten" and "Pounds" at different angles. A new tactile feature appeared in the upper left corner of the banknote - raised dots, for people with low vision.
On the reverse side is a portrait of Jane Austen, under the portrait is the inscription “I declare after all there is no enjoyment like reading!”, Her desktop, Godmersham Park, where the writer often visited and this park inspired her to write new novels.
Also on the reverse side is the Winchester Cathedral in silver, a color-changing pen, an image of an open book with the letters "JA".
Jane Austen is a famous English writer, satirist, whose works are included in the compulsory curriculum of universities and colleges in Britain. She was born in 1775 in a poor family with many children.
She was the penultimate (seventh) child. Jane and her sister changed many schools (somewhere relations with headmistresses did not work out, somewhere they gave disgusting knowledge). Therefore, their father began to teach them, instilling a good literary taste.
Jane corresponded with brothers, their wives and relatives, some of them were direct participants in the wars. These letters provided valuable material for novels. At the age of 20, she had an affair with a neighbor. But since Thomas was also from a poor family, their marriage did not take place. And at 30, Jane Austen put on a bonnet, thereby saying that she was now an old maid. At the age of 42, Jane Austen died of an endocrine disease.
