The British pound or pound sterling (GBP) is the official currency of the United Kingdom, a political union made up of England, Scotland, Wales and Northern Ireland.

Issued and regulated by the Bank of England, the pound is the world's 4th most traded currency on the international forex market behind the dollar, euro and yen.

Its value depends largely on the performance of the UK's economy, with factors such as inflation rate, the Bank of England’s (BoE's) monetary policies, GDP and UK jobs data all likely to have an effect.

Macro-level events like Britain's exit from the European Union (Brexit) and the recent Middle East conflict can and have also weighed heavily on the currency's value.

Which countries use the British pound (GBP)?

Being the official currency of the United Kingdom means pound sterling is used by all 4 nations of the union; England, Scotland, Wales and Northern Ireland.

However, there are some differences in respect of the issuing and use of bank notes within the member countries. The bank notes available in England and Wales are only issued by the Bank of England. Whereas in Scotland and Northern Ireland six commercial banks can also issue their own notes. While the bank notes themselves differ in appearance to those circulated in England and Wales, all bank notes issued across the UK are part of the same monetary system and hold the same sterling value.

Some countries in the Crown Dependencies and British Overseas Territories also use pound sterling directly or to peg against their own currency. A pegged currency is one whose value is deliberately fixed against another major currency. The currencies of Crown Dependencies and some British Overseas Territories are tied to GBP at a 1:1 rate.

Crown Dependencies

Crown Dependencies are three self-governing island territories near the UK; the Isle of Man, Jersey, and Guernsey. They make their own laws and set their own taxes. Defence and foreign relations, however, are handled by the UK.

• Guernsey: Guernsey Pound (GGP); pegged 1:1 to the British Pound (GBP).


• Jersey: Jersey Pound (JEP); pegged 1:1 to the British Pound (GBP), which circulates alongside it on the island.


• Isle of Man: Isle of Man Pound (IMP); pegged 1:1 to the British Pound (GBP).

British Overseas Territories (BOTs)

Consists of fourteen territories located worldwide that remain under UK sovereignty. Most are self-governing but the UK parliament retains ultimate constitutional oversight. Only some of these use the British pound either directly or for pegging.

• British Antarctic Territory: Mostly uninhabited research bases; uses British Pound (GBP).


• British Indian Ocean Territory: British Pound (GBP); US Dollar also widely used.


• Falkland Islands: Falkland Islands Pound (FKP); pegged 1:1 to the British Pound (GBP).


• Gibraltar: Gibraltar Pound (GIP); pegged 1:1 to the British Pound (GBP).


• Saint Helena, Ascension and Tristan da Cunha: Saint Helena Pound (SHP) on Saint Helena and Ascension Island; British Pound (GBP) on Tristan da Cunha.


• South Georgia and the South Sandwich Islands: British Pound (GBP).

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