Pound (currency) facts for kids
The pound (£) is a type of currency used in several places around the world. These include Egypt, the Falkland Islands, Gibraltar, Guernsey, Jersey, and the United Kingdom. In the United Kingdom, it is officially known as Pound sterling. A long time ago, the pound was based on the weight of one Troy Pound (mass) of silver coins.
Contents
What is the Pound?
The pound is a unit of money. It helps people buy and sell things. Like many currencies, it has a special symbol, which is £. This symbol makes it easy to spot prices in pounds. Different countries use their own versions of the pound.
A Brief History of the Pound
The idea of the pound as money goes back a very long time. Its name comes from the Latin word pondus, meaning "weight". This is because, in ancient times, money was often weighed. The first "pounds" were literally a pound of silver.
From Silver to Gold
In early England, a pound was equal to 240 silver pennies. This system lasted for many centuries. Later, gold coins became important. The value of the pound changed over time. It adapted to new ways of trading and banking. The Bank of England was created in 1694. It helped manage the country's money.
The Bank of England's Role
The Bank of England is the central bank of the United Kingdom. It is responsible for printing banknotes. It also controls the amount of money in circulation. This helps keep the economy stable. The Bank of England makes sure the pound sterling is strong.
The Pound Sterling
The Pound Sterling is the official currency of the United Kingdom. It is one of the oldest currencies still in use. It is also one of the most important currencies in the world. Many international deals use the pound sterling.
Coins and Banknotes
The pound sterling uses both coins and banknotes. Coins include 1 penny, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, £1, and £2. Banknotes come in values of £5, £10, £20, and £50. Each banknote features a picture of Queen Elizabeth II or King Charles III on one side. Famous historical figures are on the other side.
The Symbol of the Pound
The symbol for the pound is £. It looks like a fancy letter 'L'. This 'L' comes from the Latin word libra. Libra means "pound" in terms of weight. It shows the historical link between the currency and a specific weight of metal.
Pounds Around the World
While the Pound Sterling is well-known, other countries also use a currency called the "pound." These are separate currencies. They have their own values and designs.
Egyptian Pound
The Egyptian pound is the currency of Egypt. It is often shortened to EGP. Like the pound sterling, it is divided into smaller units. These are called piastres and milliemes. The Egyptian pound has its own unique history and design.
Other Pounds
The Falkland Islands pound is used in the Falkland Islands. The Gibraltar pound is used in Gibraltar. Guernsey and Jersey also have their own pounds. These are called the Guernsey pound and the Jersey pound. These pounds are usually equal in value to the Pound Sterling. However, they are separate currencies.
How Currency Works Today
Today, we use currency in many ways. We use physical cash like coins and banknotes. We also use digital money. This includes credit cards and online payments. The pound, in all its forms, continues to be a vital part of global trade and daily life.
See also
In Spanish: Libra (divisa) para niños
