The currency in the United Kingdom is the sterling. However, as we’ll discuss below it’s commonly referred to by many different names, ranging from quid to pound.
The sterling is also the world’s oldest continuously used currency and one of the most traded currencies globally.
In this article, we’re going to share everything you need to know about the sterling, along with answers to common questions we receive about spending money in the UK.
This article is part of our free series on foreign currency bank accounts which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Currency in the United Kingdom
- Can You Use Foreign Currency in the UK?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Currency in the United Kingdom
Currency in the United Kingdom is the sterling, commonly referred to as British pound sterling, pound, or GBP (Great British Pound). The sterling is issued in both banknotes and coins.Â
In addition to being legal tender in the United Kingdom, sterling (or a local currency pegged at par value to sterling) is also the official currency in several Crown Dependencies and British Overseas Territories.
The Bank of England, the United Kingdom’s central bank is responsible for issuing sterling in England and Wales. Of course, the Bank of England is also responsible for monetary policy, market stability, bank supervision, and other important areas that influence the British financial system.
Interestingly, in Scotland and Northern Ireland (also part of the United Kingdom), currency is issued by commercial banks. In both cases, Scottish and Northern Irish banks issue variations of sterling, which are legal tender. That said, sterling issued by the Bank of England is also considered legal tender in both parts of the United Kingdom.
If you are traveling to the United Kingdom, you will be happy to hear that foreign exchange services are readily available. And, finding an international currency converter to accept your home country should not be difficult.
Of course, it’s important to note that the exchange rate you’re offered will vary widely across different providers. So, it’s always best to review various options before deciding where to convert dollars to pounds, pounds to dollars (or other currencies).
Can You Use Foreign Currency in the UK?
Yes, you can use foreign currency in the UK in certain circumstances. However, it’s important to point out that foreign currency is not considered legal tender. Therefore, no retailer, restaurant, hotel, or other point of sale is obligated (or should be expected) to accept foreign currency.
That said, if you are trying to spend in major foreign currencies in the UK, including USD or EUR, then you may find certain retailers, restaurants, hotels, and tourist operators that are willing to accept your cash.
However, as we share below, using a foreign credit card may be a better option if you do not have the time to convert currency prior to arrival in the UK.
Can You Use Foreign Credit Cards in the United Kingdom?
Yes, you can use foreign credit cards in the United Kingdom. That said, your card issuer may charge foreign transaction fees or apply premiums to the exchange rate upon converting your transactions from sterling to the currency of your card.
With this in mind, if you are planning on using a foreign credit card in the United Kingdom, you should obtain a card that does not charge foreign transaction fees and does not apply premiums on exchange rates.
In most cases, these cards are offered by major credit card issuers and large financial institutions, including American Express, Chase Bank, and others.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into the sterling. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Does the UK Use British Pounds or Euros?
The UK uses British pounds, not euros. In fact, the pound sterling is the oldest continuously used currency in the world. However, in certain instances, you may find retailers, restaurants, hotels, and tourist operators that are willing to accept euros.
How Much Is $100 in the UK?
The value of $100 in the UK over the last five years when converted into pounds has ranged from a low of £70 and a high of £92. That said, the average each year has changed dramatically, in 2019 the average was £89, in 2020 it was £87, in 2021 it was £84, and in 2022 it was £92.
How Much Is $1,000 US Dollars in UK Pounds?
The value of $1,000 US dollars in the UK over the last five years when converted into pounds has ranged from a low of £700 and a high of £920. That said, the average each year has changed dramatically, in 2019 the average was £890, in 2020 it was £870, in 2021 it was £840, and in 2022 it was £920.
Do You Want Help Opening Bank Accounts?
If so, you can get access to GlobalBanks IQ in just a few clicks.
GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing bank account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!
