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Definition of 'GBP'

The British pound sterling (symbol: £; ISO code: GBP), also known as simply the pound or sterling, is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha. It is subdivided into 100 pence (singular: penny, abbreviated: p). The pound sterling is the world's oldest currency in continuous use, dating back to the 8th century. The British pound is the world's fifth most traded currency after the United States dollar, the euro, the Japanese yen and the Chinese yuan.

The pound sterling is named after the pound weight, which is a unit of mass equal to 0.45359237 kilograms. The pound sterling was originally defined as the value of one pound of sterling silver. However, the pound sterling has been a fiat currency since 1931, and its value is now based on the government's promise to pay its debts.

The British pound is issued by the Bank of England, which is the central bank of the United Kingdom. The Bank of England is responsible for setting monetary policy and issuing banknotes. The Bank of England also acts as the lender of last resort to the banking system.

The British pound is used in a number of countries around the world. In addition to the countries listed above, the British pound is also used in the Falkland Islands, Saint Helena, Ascension Island and Tristan da Cunha, the British Indian Ocean Territory, and the Pitcairn Islands.

The British pound is a major reserve currency, and it is used by central banks around the world to hold their foreign exchange reserves. The British pound is also a popular currency for international trade and investment.

The British pound is a strong and stable currency, and it is a safe investment. The British pound is also a liquid currency, and it is easy to trade.

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