Difference Between Euro and Pound

Euro vs Pound

In everyday life, we often hear about the two popular currencies Euro and Pound. Right from the country of origin, the exchange rates and symbols of these two currencies are entirely different.

Euro is the term used to specify the currency of European Union countries. The countries are Belgium, Spain, Vatican City, Martinique, Germany, Finland, and the like. This currency is now being used globally owing to its exchange rate and economy of the countries to which it belongs. It is the only used currency of the 16 European Union member states. These member states together contribute the Euro Area or the Eurozone.

Pound or British pound is the currency of Great Britain. There is one more term which refers to this currency. It is Pound Sterling. This is the financial term used to represent the currency. This currency is used in the countries of United Kingdom, Channel Islands, and Isle of Man. Sometimes pound is also known as United Kingdom Pound.

The symbol of Euro is ‚¬ and the abbreviation is EUR. The symbol of Pound is £ and the abbreviation is GBP. This refers to the term Great Britain Pound. Some other abbreviations used to denote the currency are UKP, GBR, UK, and STG.

A Euro is made up of 100 cents while a Pound is made up of 100 pence. The symbol of a penny is ‘p’ and an amount like 40 pence is pronounced as fourty pee. So the basic unit of Euro is cent and that of Pound is pence. Both Euro and Pound have a conversion factor of six significant digits. The cents of Euro are issued as coins.

Euro came into existence in 1995 and was introduced in the financial markets in 1999, as an accounting currency. Today Euro is the second most traded and second largest reserve currency in the world. It has the most combined cash value in circulation. Pound sterling comes as the third largest reserve currency in the world. And in the foreign exchange scenario it is the fourth most traded currency.

In the foreign exchange market, if a Pound is equal to 1.59 USD, one Euro is equal to 1.46 USD. So roughly speaking, one Pound is equal to 1.09 Euro.

Euro banknotes and coins are in circulation since 1st January 2002. The European Central Bank in Frankfurt and the Eurosystem administers and manages the circulation of the Euro. The Eurosystem monitors the process of minting, printing, and the circulation of the coins and notes in the states.

The Pound and Euro are two major currencies in the foreign exchange market and two leading players in the global financial arena.

Summary:
1.Euro is the currency of EU countries while pound is used in the UK.
2.The exchange rate of pound is greater than that of euro.
3.In the financial market, euro is the second most traded and pound is the third most traded currency.

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