What is GBP? Understanding the British pound

The British pound, or ‘pound sterling’, is the national currency of the United Kingdom. ‘GBP’ is the three-letter short code for the pound, as it appears in foreign exchange (FX) markets. The pound is the oldest currency in the world that is still in use today, giving it a history and legacy that carries weight – both literally and figuratively – in the world economy.

The British pound is also represented by its symbol, £.

GBP is administered by the Bank of England, one of the oldest and most-respected central banks in the world. The pound is used throughout England, Scotland, Wales and Northern Ireland. The Bank of Scotland issues its own physical notes, but these are interchangeable with notes issued by the Bank of England, and the Bank of England sets interest rates for the whole of the UK.

How to convert GBP to other currencies

Converting GBP to other currencies is simple with Halo Financial. When you sign up for a Halo account via our website,  you’ll find out how to convert currency, and you’ll be able to keep track of all your conversions and trades online.

Halo Financial provides members with the latest expert analysis to help inform their FX trades. Once you’ve gained the insight, simply request a quote for the trade you’d like to make.  Your funds will be sent via bank transfer, and you’ll receive payment in your desired currency straight to your account.

Exchange rates between GBP and USD, EUR, AUD or other currencies can fluctuate rapidly depending on current financial and political climates.

When the market is volatile, you need a currency expert like Halo Financial to ensure you get the best value. Our expert market analysts provide the latest data and insights in an ever-changing financial landscape. Register with Halo today and trade FX safely and securely.

Get the latest information on exchange rate trends direct from Halo:

GBP/USD

GBP/EUR

GBP/AUD

GBP/JPY

GBP/CAD

Top three reasons why GBP is one of the world’s most-traded currencies

1. London as a global financial hub

London is one of the world’s most important financial centres. It’s home to many major banks, hedge funds and global investors, and billions are traded every day on the London stock exchange.

Despite the fact that GBP is the currency of less than 1% of the global population, approximately 35% of all FX trading flows through London! It’s clear, then, that GBP punches well above its weight in world economic terms.

2. High liquidity and volatility

Comparative to EUR or JPY, GBP is a relatively volatile currency, prone to greater shifts in value over shorter periods of time. This makes it attractive to traders due to the opportunities this affords for big wins on FX markets.

This factor, coupled with the high liquidity of GBP, makes it very easy to trade. High liquidity means faster executions, meaning you can make your move the second exchange rates change in your favour. This is made even easier with an expert trading platform like Halo Financial.

3. Economic and political influence

The UK’s relative political stability, strong financial history and global economic influence all make GBP a very attractive prospect for investors. The UK is a member of the G7, and even political shocks such as Brexit or the Coronavirus pandemic have not significantly affected trust in GBP.

GBP was the original ‘reserve currency’ when the World Bank  and International Monetary Fund (IMF) were established after World War II. Despite the fact that GBP has been usurped as the world’s main reserve by USD, it remains an important reserve in most global portfolios.