Characteristics Of The British Pound

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The pound was created in 1489 and is classified as one of the world’s oldest currencies. It is said to be descended from the Anglo-Saxon period. The pound sterling is an important part of the world’s micro-economic and macro-economic market and so is the exchange rates. The exchange rate of pound and its demand and supply is significant to investors who are involved in international trade and it also determines the flow of Balance Of Payments, parity and spot rates. It has one of the highest trading volumes in the world and accounts for 13% (approximately) of the trading volume in the foreign exchange markets. Following are the characteristics of GBP from the given GBP/EUR currency pair: To begin with, the silver coin was introduced as a penny in 760 and the currency was finally settled by paper notes in 1694 after changing plenty of forms including handwritten notes. The reason behind increasing value of the currency was that the notes were published for the value of gold instead of the original silver coins used at that time. The UK used the gold standard to peg the value of British Pound; however, it was abandoned at the outbreak of World War I. The GBP was dominant and stable in the economy for a very long period until the appearance of US dollar that changed the situation drastically. The circulation of British notes in the market was started in 1694 and the currency was regulated by The Bank of England. The British Pound was used as a major currency known as the

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