The origin of money can be traced back to the early history of mankind. Money is a way of buying and selling things. In every society there are certain items that have value which can be used as a medium of exchange. The gold standard, for example, was adopted by most European countries at one time or another during the last two hundred years. This standard of money was based on the idea that a specific amount of gold should be equal to one unit of currency.
This idea was also used in the United States during the last century. During that time, the dollar was defined as one-fortieth of an ounce of gold. A troy ounce is equal to about 31.1034768 grams of pure gold and is divided into 12 Troy ounces. The currency units in most countries are now defined in terms of their domestic currency, such as the U.S. dollar and the Euro.
There are many different currencies in use throughout the world today, each with their own names and values. It is important to understand the difference between the value of a currency and its exchange rate. This is important for anyone who trades currencies or who wants to understand the current market conditions in their own country. Euro and Pound are two different currencies which are used in Europe. Euro is the common currency of the European Union and the Euro has a fixed exchange rate with most other currencies, such as pound sterling and U.S. dollar. But what are the differences between Euro and Pound?
This article will help you to understand the Euro and Pound in detail. You will also find out the important facts about the two currencies, their trading value, and the key differences between Euro and Pound.
|The official currency of the European Union||The official currency of the United Kingdom|
|Is a single currency for 19 countries||Is the currency of only four countries: UK, Scotland, Northern Ireland and Wales|
|1.3 Times more valuable||Less valuable|
|Has 12 stars on the outer ring||Only has 9 stars on the outer ring|
What is Euro?
Euro is the official currency of the European Union. It was introduced in 1999, replacing the former national currencies (EURO) and it is being used as a reserve currency by many countries across Europe. The euro is issued by a central bank called European Central Bank (ECB). Its abbreviation is EUR.
The Euro is divided into 100 cents. Its symbol is €. The smallest denomination of Euro is 1 cent and the largest one is EUR 200. This is the smallest unit of currency that can be used for transactions.
What is Pound?
Pound is the official currency of the United Kingdom. It was introduced in England in the 1190s by King Richard I as a replacement for Anglo-Saxon money (Strits). In 1604, James I of England issued the first coin, called Crown. This was a silver coin which was worth one pound sterling. It is now known as Pound Sterling. Its abbreviation is GBP. However, it has been a legal tender in other countries like Canada since 1938, Jamaica since 1966, Australia since 1969 and New Zealand since 1974.
The Pound Sterling is divided into 100 pence (shillings). Its symbol is £. The smallest denomination of Pound Sterling is 1 penny and the largest one is £1.
Both the Euro and Pound are considered as the most important currencies in Europe. In addition, they are also two of the most used currencies around the world. However, both the currencies have their own unique features. Let’s find out some of the differences between Euro and Pound in detail.
Euro Vs. Pound
While both Euro and Pound are currencies, there are a number of differences between Euro and Pound. It is important to understand the key facts about both currencies so that you can decide which currency to use for your international payments. Now, let’s take a closer look at the differences between Euro and Pound.
- The use in different countries
Euro is a single currency for 19 countries, while Pound is the currency of only four countries: UK, Scotland, Northern Ireland and Wales. As a result, while Euros are used all over Europe, British Pounds are mainly used in England. The Euro is also accepted by almost all countries of the European Union. However, the Pound is not accepted by any country in Africa, Australia and New Zealand.
- Difference in value
Euros are much more valuable than Pounds because they are used as a medium of exchange in Europe and parts of Central America, while Pounds are used only in the UK. The Euro has a value of 1.3 times that of the Pound.
As mentioned above, the Euro is more valuable than the Pound, which is why its exchange rate is 1.3 times that of the Pound. So, in terms of exchange rates, the Euro is 2.36 times more valuable than the Pound.
- Difference in physical appearance
Euro coins have 12 stars on the outer ring, while Pounds have only 9. The Euro also has a number of security features, which are not present in the Pound. For example, Euro has ridges on both sides of the coins to help them to be separated from each other. The Euro also has a circular imprint of the European Union’s star on the reverse side.
Pound coins have a number of historical symbols on their obverse side, such as St George slaying the dragon and images of British castles. In addition, Pounds have no ridges or stars. They are only identified by the portrait of Queen Elizabeth II.