Popular currency rates

World currency rates

The British Pound

World currency rates have been an important feature ever since trade started taking place between two countries. Today world currency rates help in determining the foreign exchange taking place all across the globe. It is an interesting aspect to know from where and how did the different chief currencies of different countries actually originate or come from. The history of the British pound comes as one of the most fascinating concepts to know.

It was said that the British pound originated in the year 1489 and at that time, was just a unit in the initial times that was equivalent to silver weighing one pound. It was in the 19th century that British pound had started gaining immense power and was known to be the strongest currency of that period. It was also considered the closest to 24 carat gold. In 1983, the first one pound British coin was launched with its base of metal and nickel-brass and it came as a replacement for 1 Pound banknote. The one pound coin had gained huge popularity in lesser time because of its portability and durability better than the 1 pound bank-note. It was startling to note that the coin’s design had been changed 13 times in the initial 16 years of its launch. By the end of the 20th century, the value of the British pound had started to dip with respect to dollar.

Known to be the oldest currency of the world, the British pound, numerous colonies had adopted pound as their chief currency for trade with others. The empires that did so were spread all across the globe and included countries like Australia, Barbados, British West Africa, Cyprus, Fiji, Irish Free State, Jamaica, New Zealand, South Africa and Southern Rhodesia. In 1940, the value of one pound, with respect to the dollar, was fixed at £1 = $4.03. The exchange rate prevailed all through the Second World War and became a part of the post-war exchange rates as well. However, the great devaluation of the British pound also came after the Second World War, on 19 September 1949, when the value of the same was devalued by as much as 30.5% and the value of 1 pound came down equivalent to $2.80. The domination of the British pound was so much by that time that the devaluation act forced several other currencies of the world also to reduce their rate with respect to dollar.

The domination of the British pound still prevails in the foreign exchange world and holds a key role in determining the fate of the currency rates today.