The pound sterling, also referred to as the British pound, is the official currency of the UK. The British pound was introduced as paper money upon the formation of the Bank of England in 1694, making it the world’s oldest currency still in use. The British currency was the world’s most important currency for many years and remained so until the collapse of the Commonwealth during the 20th century, when it was replaced by the US dollar and the euro. Today, the British pound is virtually irrelevant as a reserve currency or when trading in industrial goods.
As a member of the European Union, the UK could introduce the euro as its currency and do away with the British pound. However, politicians and citizens in the United Kingdom are largely against abolishing the British pound.
Like all exchange rates, the British pound exchange rate and its relationship to other currencies is calculated and published daily on the currency markets.