British pounds - Effects in the Economy
At the outset, it is important to understand that all currencies across different countries are effected mostly by the same economic factors. To be specific, primarily following five factors effects the currencies are: i) Monetary policy ii) Price inflation iii) Confidence/Sentiment iv) GDP - Economic Growth v) Balance of Payments Pound sterling is one of the most popular currencies in the Foreign Exchange market. It is the considered to be the oldest actively traded currency, Its origin is traced to specie based Sterling which was in the form of a silver coin in 775 AD. At present, this is one among the six strong currencies as compared to Dollar. The other five currencies are- Euros, Bahrain Dinar, Kuwaiti Dinar, Latvian Lats and the Omani Rials. The use of Sterling for trade within Britain continued till 1694 when Bank of England was formed. The Bank assumed the duties of printing paper bank notes representing various denominations of Sterling and Pounds. The