History of the Pound

A History of the Pound The pound sterling is the oldest currency still in use. For thousands of years, the pound has been a constant within the economy of the world, and even while much of the European Union has adopted the euro as its common currency, the United Kingdom has retained the pound. Here's a look at where the pound began, and how it got to where it is today. 760 King Offa of Mercia introduces the silver penny. 1158 240 of these pennies equaled 1 Mercian pound (about 350g). A new, 92.5% silver penny is introduced by King Henry II. This harder, blended silver is known as "sterling." 1526 The weight of a "pound" changes from the Mercian pound (350g) to a Troy pound (373g). 1717-1816 1867-1914- When gold becomes overvalued in the country, silver becomes a highly-valued trade commodity and is used to purchase goods from other countries. This leads to a gold standard, which is officially adopted in 1816. The gold standard is adopted by other European countries, allowing a cleaner exchange rate for the pound. 4.85 U.S. dollars 5.25 Canadian dollars 12.10 Dutch guilders 26.28 French francs 20.43 German marks -1940-1949 1 pound sterling An agreed upon exchange rate between the U.K. and the U.S. is formalized, with £l equal to $4.03 for nearly a decade. In 1949, the pound is devalued to $2.80. 1971 Known as "Decimal Day," 15 February of this year marks the moment that the United Kingdom decimalises its currency. Old System New System 1 pound = 20 shillings 1 shilling = 12 pence 240 pence = 1 pound 1 pound = 100 pence 1976 The worth of the pound sterling comes into question internationally, -1992 with concerns that the After a failed attempt to join the European Exchange Rate Mechanism, the country withdraws on 16 September, Black Wednesday. Investor George Soros makes nearly $1 billion by shorting the pound. pound is overvalued. The International Monetary Fund grants Great Britain a loan to solve their budget deficit. 2005 YES NO 55% of British citizens vote against adopting the euro as British currency. 30% vote in favour of the change. POUNDS to POCKET References 1) Wikipedia. (n.d.). Pound sterling. Retrieved 2 May 2014 from http:llen.wikipedia.org/wiki/Pound_sterlinges