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Currency Major Key Facts and Figures
The Great British Pound Sterling is the official currency of the United Kingdom.
The term ‘Pound’ originates from Anglo Saxon times when coins called ‘Sterlings’ were made from silver. 240 of these equally one troy pound in weight of silver.
It is also the official currency of the Crown dependencies of Guernsey and Jersey, Isle of Man, Gibraltar, Falkland Islands, Saint Helena and the Ascension Islands.
Foreign Exchange Trading Volume
The Pound Sterling is the forth most traded currency on Forex behind the United States Dollar, Euro and Japanese Yen, accounting for 12.9% of daily transactions.
Sterling is used as a reserve currency around the world and is currently ranked third in terms of reserves held which amount to 3.9%.
Bank Of England
The Bank of Englad (BOE) is responsible for the UK monetary policy and ultimately the valuation of the Pound Sterling. It is made up of a nine member committee with a mandate to implement effective policy, independent of government.
The BOE aims to keep inflation in check. It primarily uses interest rates to manage the level of inflation in the economy.
Responsibility for the manufacture of Sterling coins and bank notes falls to seperate body known as the ‘Royal Mint’. This is owned and mandated by HM Treasury.
1 MEETINGS PER MONTH
2% TARGET INFLATION LEVEL
Popular British Pound Crosses
Other notable traded British Pound Crosses include the GBP/JPY, GBP/CHF, AUD/GBP, and CAD/GBP. The total volume of transactions on these pairs amounts to less than 1 of the total Forex market daily volume.