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Difference Between Pound and Sterling

Pound vs Sterling

Everyone is familiar with the currency of the United Kingdom which is more commonly known as the pound. Sometimes, however, the word “sterling” is used to describe the UK currency. Are these two different things? Pound and sterling are used interchangeably in the United Kingdom, but is there really a difference between these two words used for the currency denomination?

British pound or pound is a type of currency much like the euro for Spain and the dollar for the USA. The pound sterling, generally shortened to just ”pound,” is the certified currency of the United Kingdom, Tristan da Cunha, British Overseas Territories of South Georgia, and the South Sandwich Islands, the Isle of Man, Channel Islands, and the British Antarctic Territory. Some are saying that the basis of this currency dates back to the Anglo-Saxon period. During this time, sterlings were minted from silver. A pound of these consisted of 240 sterlings. Large transactions were made by the exchange of pounds of sterlings.

The pound sterling is subdivided into 100 pence. It ranks at number four for the most-traded currency in the world’s foreign exchange market, the first being the U.S. dollar, followed by the euro, and then the Japanese yen. Those four currencies make up the basket of currencies for the calculation of the value of the IMF Special Drawing Rights. Sterling ranks at number three under the global reserves.

The financial term used for the British pound is “pound sterling” (abbreviated stg.). For formal contexts, the full, official name is used which is pound sterling. The plural of this is pounds sterling. “Pound sterling” is also used when there is a need to distinguish the currency of the United Kingdom from other countries with the same currency. These currencies are: Egyptian pound, Lebanese pound, Sudanese pound, and Syrian pound. When not under these circumstances, “pound” is the word usually used. Pound is also recognized as the United Kingdom Pound. British pound is used in more casual settings, and it is not considered to be the official name. Another slang term for pound is the word “quid” (used in both the singular and plural context).

The word “sterling” (shortened to ster. or stg.) is used when pound sterling is abbreviated. It is the financial term made used to stand for the currency. Usually, sterling is used in the wholesale financial markets although not when it comes to describing actual amounts. Like in the case of the sentence “Payment for this is accepted in sterling,” converting it to “Payment for this is five sterling” is wrong.

There really is no wrong word between pound and sterling. Both are used all over the world and only differ depending on the circumstance. The United Kingdom currency is more known by the word “pound” while “sterling” is used in the financial market. The pound sterling is the oldest currency being used in the world.

Summary:

1.The pound sterling, generally shortened to just ”pound,” is the certified currency of the United Kingdom, etc.

2.Some are saying that the basis of this currency dates back to the Anglo-Saxon period.

3.Large transactions were made by the exchange of pounds of sterlings.

4.It ranks at number four for the most-traded currency in the world’s foreign exchange market; the first being the U.S. dollar, followed by the euro, and then the Japanese yen.

5.British pound is used in a more casual setting, and it is not considered to be the official name. Another slang term for pound is the word “quid” (used in both the singular and plural context).

6.The United Kingdom currency is more known by the word “pound” while “sterling” is used in the financial market. The pound sterling is the oldest currency being used in the world.


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