How does the English currency system work?


Quick Answer

England uses the currency of the United Kingdom, whose unit of currency is the pound sterling, with note denominations of £5, £10, £20 and £50. As a European Union member, the United Kingdom accepts the euro in trade but has not adopted the euro as currency, states London and Partners.

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How does the English currency system work?
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Full Answer

As established by the Bank of England, the Great British Pound is notated as '£' or GBP. English money is decimal-based, assigning one hundred pence (the plural form of penny) to each pound. Coins have the values of 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2, according to Visit Britain.

In common usage, English people refer to pence as "pee," call a five-pound note a "fiver" and a 10-pound note a "tenner," according to Visit London. The Channel Islands and the Isle of Man circulate coins and notes that vary in appearance from those on the mainland, but the monetary system is the same, per Visit Britain.

The existing English currency system was established in 1971. Historically, as cited by Eighteenth Century England at the University of Michigan, English currency denominations relied on an archaic system of accounting that incorporated many irregular denominations, such as the farthing (one quarter of a penny), the shilling (one twentieth of a pound), the crown (one quarter of a pound) and the guinea (21 shillings).

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