Currency in United Kingdom: GBP Send & Spend FX Guide
Resources for Expats, Travelers, and Entrepreneurs Navigating Life and Trade in the United Kingdom with the British pound.
What's in this United Kingdom currency guide?
What currency is used in the United Kingdom?
The official currency of the United Kingdom (country code: GB) is the British pound, with symbol £ and currency code GBP.
What is a good British pound exchange rate?
The BestExchangeRates.com currency comparison table below helps you see the total cost of your currency transaction by showing the exchange rates offered by different providers. It also makes it easy to spot potential savings from market-leading FX services compared to bank rates.
To see a full list of rates, enter your transaction type, currencies and amount then click ‘GET RATES’:
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Good things to know about the British pound
The British pound Sterling is the official currency of the United Kingdom. It is represented by the symbol "£" and is abbreviated as GBP (Great Britain Pound).
Contributing to around 13% of all foreign exchange deals, the pound, or sterling, is the world’s fourth most traded currency.
Reputedly, sterling is 1200 years old. It is said that Anglo-Saxon traders used silver pennies in the eighth century called ‘sterlings’, 240 of which would equal one pound in weight.
Due to its membership of the European Union (at the time of the euro's introduction in 1999), Britain could have adopted the euro as its currency, however the British government opted against this because it wanted to retain monetary policy independence and because it perceived euro adoption as offering only small economic benefits.
In recent years, the most significant event to affect sterling’s valuation was the UK’s vote to leave the European Union on June 24th 2016 – a day on which the exchange rate for GBP/USD fell by as much as 11%.
In the past two decades, the pound’s highest valuation against the dollar occurred in November 2007 when GBP/USD reached 2.1161. Its lowest value came in October 2022, when GBP/USD reached 1.11.
The British are more focussed on their currency exchange rate than are the citizens of most other countries, along with perhaps the Australians and Canadians. This is may be due to the open and trading nature of the UK economy and also due to their love of travel to the nearby 'continent' and further afield.
The pound Sterling banknotes and coins
The physical currency consists of coins and banknotes. The coins come in denominations of 1 pence (p), 2 pence (p), 5 pence (p), 10 pence (p), 20 pence (p), 50 pence (p), and £1 and £2.
The banknotes come in denominations of £5, £10, £20, and £50. The banknotes feature images of famous British historical figures, such as Queen Elizabeth II, William Shakespeare, and Jane Austen. The design of the currency is constantly being updated, so the physical appearance of the coins and banknotes may vary slightly over time.
For more GBP information check out our selection of British pound news and guides.
Frequently Asked Questions
What currency should I use in the United Kingdom?
The domestic currency in the United Kingdom is the British pound.
What is the British pound currency code and symbol?
The three letter currency code for the British pound is GBP — symbol is £.
What does the British pound look like?
Here is an example British pound banknote:
Which countries use the British pound?
It is the domestic currency in United Kingdom, Guernsey, Isle of Man, Jersey and South Georgia and South Sandwich Islands.
Is the British pound a closed currency?
No, the British pound is freely available and convertible. See guide: What is a closed currency?
What are equivalent amounts of USD and GBP?
Here are some popular conversion amounts for USD to GBP (US dollar to British pound)*.
*Converted at the current USDGBP interbank exchange rate. Calculate actual payout amounts for Send Money and Travel Money exchange rates.
Travel money for the United Kingdom
Using Wise for British pound travel money is a smart choice for savvy travelers. With its competitive exchange rates and low fees, Wise allows you to convert and manage multiple currencies effortlessly.
Be careful when using your own bank's Debit/Credit Card, as your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash on top of the standard Visa/Mastercard 2.5% from market mid-rate.
For card purchases, if you are offered a choice of currencies always select to Pay in British pound otherwise you will typically get much worst dynamic currency conversion (DCC) exchange rates.
If you really want British pound cash before departure, you can save money by ordering online. You generally get better rates and can pick up the GBP cash locally or even on travel day at the airport.
United Kingdom: Travel Guide
Traveling to the United Kingdom requires careful financial planning to ensure a smooth and cost-effective experience. Here's a comprehensive guide to help you navigate currency considerations and manage your money effectively during your visit.
The United Kingdom (UK) is a vibrant destination brimming with historical landmarks, modern attractions, and diverse cultural experiences. To make the most of your trip, here are essential tips for navigating the UK like a pro.
1. Entry Requirements
- Check if you need a visa or an Electronic Travel Authorization (ETA) before traveling to the UK. Citizens of some countries can visit visa-free for short stays.
- Ensure your passport is valid for the duration of your stay.
2. Currency and Payments
- The UK uses the British Pound Sterling (£). Coins and notes are widely accepted.
- Credit and debit cards are commonly used, with contactless payment widely available for small purchases.
- ATMs are plentiful, but inform your bank beforehand to avoid issues with international transactions.
3. Transportation
- Public Transport: The UK has an extensive network of buses, trains, and the London Underground (Tube). Use an Oyster card or contactless payment for cheaper fares in London.
- Rail Travel: Intercity trains are fast and efficient, connecting major cities like London, Edinburgh, and Manchester.
- Taxis and Rideshares: Black cabs and rideshare apps like Uber operate in most urban areas.
- Driving: If you plan to drive, remember the UK drives on the left. A valid international driving permit (IDP) may be required.
4. Weather and Packing
- The UK is famous for its unpredictable weather. Pack layers, a waterproof jacket, and an umbrella, regardless of the season.
- Comfortable walking shoes are essential for exploring cities and countryside alike.
5. Accommodations
- Options range from luxury hotels to quaint B&Bs and budget-friendly hostels.
- Book early if visiting during popular events like Wimbledon or the Edinburgh Festival Fringe.
6. Cultural Etiquette
- Queuing: The British value orderly queues; skipping the line is frowned upon.
- Tipping: It’s customary to tip 10-15% in restaurants if service is not included. Tipping is not expected in pubs.
- Pubs: Pubs are central to British social life. When ordering drinks at the bar, tipping the bartender is optional but appreciated.
7. Top Attractions
- London: Visit iconic sites like the Tower of London, Buckingham Palace, and the British Museum.
- Edinburgh: Explore Edinburgh Castle and stroll along the historic Royal Mile.
- The Lake District: Enjoy stunning landscapes perfect for hiking and boating.
- Bath: Admire the Roman Baths and Georgian architecture.
8. Dining and Food
- Sample traditional dishes like fish and chips, Sunday roast, and Cornish pasties.
- Don’t miss a classic afternoon tea or try international cuisine in cosmopolitan areas.
9. Festivals and Events
- Carnivals and Parades: Experience vibrant events like the Notting Hill Carnival or the Hogmanay New Year’s celebrations in Scotland.
- Music and Arts Festivals: Glastonbury and the Edinburgh Festival Fringe are must-sees for culture lovers.
10. Safety and Health
- The UK is generally safe, but stay alert in crowded areas to avoid pickpocketing.
- Emergency services can be reached by dialing 999 or 112.
- Healthcare is accessible through the NHS, but visitors should have travel insurance.
11. Practical Apps
- Citymapper: For navigating public transport in cities.
- Trainline: For booking train tickets and checking schedules.
- Google Maps: For reliable navigation and location searches.
Everyday Costs in in United Kingdom
How much does it really cost to live, work, or travel in United Kingdom? Here's what to expect for daily expenses and expat living.
Visiting the United Kingdom offers a fantastic blend of culture, history, and convenience—but it can be pricey, especially in London. For a one-week mid-range stay, travelers should budget around GBP £900–£1,200, depending on how much is spent on accommodation and activities. The UK is highly card-friendly, with contactless payments accepted almost everywhere, though it’s still a good idea to carry a small amount of cash for taxis, markets, or tips.
Typical daily expenses in the UK:
• 🥘 Meal at a local restaurant: £15–£20
• ☕ Coffee: £3–£4
• 🚇 Public transport fare (daily cap in London): £7.70 (Oyster or contactless)
• 📱 Prepaid SIM card (7 days with data): £10–£15
• 🛏️ Budget hotel or Airbnb: £80–£130 per night
For expats, monthly living costs (excluding rent) typically range from £800–£1,200, with rent in London adding anywhere from £1,200 to £2,000+ depending on the area. Opening a UK bank account is straightforward with proof of address and ID, and debit card payments are the norm. Online services like Wise or OFX generally offer far better exchange rates and lower fees than traditional banks, making them the preferred choice for incoming transfers or moving funds internationally. Currency exchange at airport kiosks or high street outlets tends to be poor value—plan ahead to avoid hidden charges.
USD/GBP Market Data
The below interactive chart displays the USD/GBP change and UP📈 DOWN📉 trends over the past 1 Year.
Recent British pound Market News
The US imposed a 10% reciprocal tariff rate on goods from the UK as part of Trump’s growing trade war with countries around the world.
The British pound (GBP), often referred to as sterling, is one of the world’s oldest and most traded currencies. As the official currency of the United Kingdom, its value is influenced by a combination of economic performance, monetary policy, political stability, and global market sentiment. Unlike commodity-linked currencies such as the Canadian and Australian dollars, the pound is primarily driven by domestic economic indicators and investor confidence in the UK economy.
Monetary policy set by the Bank of England (BoE) plays a key role in determining the value of the GBP. Interest rate decisions influence investment flows, with higher interest rates attracting foreign capital and strengthening the pound, while lower rates can weaken demand and push the currency down. Inflation levels, employment data, and GDP growth are closely watched by traders, as they help predict the BoE’s future policy direction.
The GBP is also highly sensitive to political events and government policies, particularly in the aftermath of Brexit. The UK’s departure from the European Union introduced currency volatility, as uncertainties surrounding trade agreements, business regulations, and foreign investment continue to affect investor sentiment. Periods of political instability, such as leadership changes or unexpected election outcomes, often lead to short-term fluctuations in the pound’s value.
Sterling’s performance is also shaped by its relationship with major trading partners, particularly the United States and the European Union. Since the UK relies heavily on trade with Europe, economic developments in the Eurozone can have a direct impact on GBP demand. Additionally, the GBP/USD pair—often called “Cable” in forex markets—is one of the most liquid and widely traded currency pairs, making it susceptible to movements in the US dollar.
Market trends show that the GBP is more volatile during European and U.S. trading hours, as it is heavily traded in London, one of the world’s largest financial hubs. Global risk appetite also plays a role; during economic uncertainty, investors tend to shift towards safe-haven currencies like the US dollar or Japanese yen, often leading to GBP depreciation.
Looking ahead, the future of the pound will depend on the UK’s economic recovery, the BoE’s policy decisions, trade agreements, and investor confidence. With the UK seeking to solidify its post-Brexit position in global trade, factors such as foreign investment, economic reforms, and business growth will shape the pound’s trajectory in the years to come.
For more GBP information read our News and guides to the British pound.
Send Money to the United Kingdom - Best Rates
To get a good (and fair) exchange rate when sending money to the United Kingdom you need to find and compare exchange rates for International Money Transfers (IMTs).
The available FX rates for sending money abroad can be very different to the mid-market (wholesale) rate which you see reported online and in the News.
You should especially compare your own bank's exchange rates to those available from Money Transfer specialists to see how much you can save - we make that calculation easy in the below table.
Get a better deal for foreign transfers to the United Kingdom
When sending money to the United Kingdom it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 4 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or British pound amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted GBP amount will be transfered to the recipient account you specify in the United Kingdom.
Use the above calculator to compare the exchange rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more British pound deposited into the recipient bank account and less margins and fees kept by the banks!
Managing money while living and working in the United Kingdom
Managing your money effectively while living and working abroad can be challenging, but there are several steps you can take to ensure that your finances are in order.
Understand British pound currency exchange rates: Exchange rates can have a big impact on your finances, so it is important to keep an eye on the GBP exchange rate and consider using a money transfer specialist or a credit card that does not charge foreign transaction fees to get the best exchange rate.
Use a local British pound bank account: A local GBP bank account can make it easier for you to manage your finances and pay bills while you are in the United Kingdom. It may also be more convenient to use a local GBP bank account to make purchases and withdraw cash.
Research local laws and regulations: It is important to understand the local laws and regulations that apply to financial transactions in the United Kingdom. This can help you avoid legal issues and ensure that you are complying with local requirements.
Consider the tax implications: It is important to understand the tax implications of living or doing business in the United Kingdom. This can help you plan your finances and ensure that you are paying the correct amount of tax.
Seek financial advice: If you are unsure of how to manage your finances in the United Kingdom, it is a good idea to seek the advice of a financial professional who is familiar with the local financial system. This can help you make informed decisions and avoid financial pitfalls.
We have put together some key points to help managing your money effectively, you can reduce financial stress and enjoy your experience living or doing business in the United Kingdom.
Expat and Business Guide to Life in the UK
The United Kingdom (UK) offers a rich blend of historical charm, modern infrastructure, and diverse opportunities, making it an attractive destination for expatriates and business professionals alike. Here's a comprehensive guide to help you settle in and thrive in the UK.
1. Living in the UK as an Expat
Housing
- Options: Choices range from urban apartments in cities like London, Manchester, and Edinburgh to countryside homes.
- Renting: Rental prices vary significantly, with London being the most expensive. Shared accommodation is a popular cost-saving option.
- Tips: Use online platforms like Rightmove or Zoopla for housing searches, and be prepared to provide references and a deposit.
Healthcare
- The UK offers a public healthcare system known as the National Health Service (NHS).
- Registration: Expats on long-term visas can access the NHS after paying an Immigration Health Surcharge as part of their visa application.
- Private Healthcare: Many expats opt for private insurance for quicker access to specialists.
Education
- Public Schools: Free for children of residents, though quality varies by area.
- Private Schools: Offer smaller class sizes and extracurricular activities, though they are costly.
- Higher Education: The UK is home to prestigious universities like Oxford, Cambridge, and Imperial College London.
Cost of Living
- The cost of living varies widely; London is significantly more expensive than smaller cities or rural areas.
- Essentials like groceries and transportation are affordable, but rent and utilities can be high in urban areas.
2. Working in the UK
Work Visas
- Most expats require a work visa unless they are from the European Union or hold a status under the EU Settlement Scheme.
- Popular visas include the Skilled Worker visa and the Global Talent visa.
Business Etiquette
- Punctuality is highly valued.
- Meetings often begin with small talk before moving on to business matters.
- Formal attire is common in business settings, though some industries like tech lean towards smart casual.
Employment Rights
- Workers are entitled to a minimum wage, statutory sick pay, and annual leave.
- Employers must provide contracts outlining terms of employment.
Job Market
- Key industries include finance, technology, healthcare, and education.
- Networking is crucial; platforms like LinkedIn and professional events can open doors.
3. Starting a Business in the UK
Business Structures
- Popular business types include sole proprietorships, partnerships, and limited companies.
- Register your business with Companies House and comply with UK tax laws.
Funding and Support
- The UK offers various funding options, including startup loans and venture capital.
- Organizations like Innovate UK provide grants for tech and innovation-focused businesses.
Taxes
- Businesses must register for VAT if their annual turnover exceeds the threshold (£85,000 as of 2024).
- Corporation tax is levied on profits, and rates are subject to change.
Workspaces
- Co-working spaces like WeWork and Regus are popular in cities, offering flexible lease terms.
4. Adapting to UK Culture
Language
- English is the official language, but regional accents and dialects can vary greatly. Learning some local slang can be helpful.
Social Etiquette
- The British are generally polite and reserved. Saying "please" and "thank you" is important.
- Pubs are central to social life; it’s customary to take turns buying drinks for your group.
Transportation
- Public transport is efficient and includes trains, buses, and the London Underground.
- Owning a car can be useful in rural areas but is unnecessary in cities.
Weather
- The UK is known for unpredictable weather. Always carry an umbrella and dress in layers.
5. Key Challenges for Expats
- Adjusting to the Climate: The weather can be gloomy, especially in winter.
- Navigating Bureaucracy: Processes like obtaining a visa or registering for healthcare can be time-consuming.
- Cost of Living: Budgeting is essential, especially in cities like London.
6. Resources for Expats and Businesses
- Expat Communities: Join groups on platforms like Meetup or Facebook to connect with fellow expats.
- Government Resources: Visit gov.uk for official information on visas, taxes, and business registration.
- Professional Organizations: Membership in industry associations can provide networking opportunities.
The UK offers a dynamic environment for expats and business professionals, combining a high standard of living with countless opportunities for personal and professional growth. By understanding the essentials of living and working in the UK, you can navigate this exciting journey with confidence.