In our everyday lives, money holds a strong prestige and significance which is bigger than any other asset. Together, there is a total of 180 currencies in the world originating from different countries. Among which two of the most popular currencies are Pound and Euro. Right from the exchange rates to their symbols, these are totally different currencies. Yet, many of us end up having confusion between the Pound and Euro and sometimes mix them up in our intellects too.
Currency trading is quite prevalent everywhere in the world. In that context, having a thorough understanding of global currencies is very important.
Pound vs Euro
The difference between the Euro and the Pound is its place of origin. Pound is the currency of Britain whereas the Euro is the currency of the European Union territories and it is the authorized currency of the eurozone. Some people also refer Pound as the UK pound.
But as a commoner, if you want to learn the variation between any two currencies all you need to know is their significance, exchange rates, symbols, and origin. Both the Pound and the Euro fall and rise at different rates in the exchange market depending upon the global market conditions and cannot proclaim to be similar by any means.
Comparison Table Between Between Pound and Euro (in Tabular Form)
|Parameter of Comparison||Pound||Euro|
|Inception||Pound is the official currency of the United Kingdom having ISO code as GBP. Also, referred to as Pound Sterling.||Euro is the national currency of the European Union countries having ISO code as EUR.|
|Currency users||This currency is used by 9 British regions. In the Pitcairn Islands, this currency is used unofficially and is not regulated by the Bank of England.||This currency is used by 19 EU member states. This currency is prominent in Eurozone regions c like Belgium, Austria etc .|
|Exchange rate||In the foreign exchange market, exchange rate for 1.15 Euro for 1 Pound.||The exchange rate, in this case, is 0.89 Pound Sterling against 1 Euro.|
|Handler||This currency is managed by the Central Bank of England (BoE).||This currency is managed by the European Central Bank (ECB).|
What is Pound Currency?
This is the official currency of the United Kingdom and surrounding British Territories. The Pound (£) can be referred also as GBP which is an abbreviation for British Pound Sterling, you may also refer the pound as UK pound or simply Sterling. All these terms indicate the same currency. Thus, there must be no confusion when you exclaim any of these names during a conversation or in a statement.
The British Pound is the world’s 3rd strongest reserved currency and the oldest too.
This currency comes from the Latin term ” Libra” which means weight.
The history indicates that the Pound was first introduced as money in the year 760 and ever since they existed in many countries and their surrounding regions.
Initially, the Pound was not only the accepted currency in Great Britain but it also continued its legacy in various colonies of the British Empire namely Canada, New Zealand, and Australia until they had their own authorized banknotes.
Note: Zimbabwe the country in Africa also uses the Pound as their monetary.
In today’s time, the currency exists in different sects;
e.g., Notes : £1, £5, £10, £20, £50, £100, £500.
Coins : £1, £2, £5,10p, 20p, 25p, 50p,1p, 2p, 5p.
P.S- £500 white note is the Bank of England’s highest denomination.
The Bank of England is authorized to make banknotes and coins for this currency.
What is Euro Currency?
Euro is the official currency of 19 European Union member states. The symbol for Euro is €, it is indicated in every coin, notes, or bills. The abbreviation for Euro is EUR. So, either an € or EUR can be used to denote this currency. Euro is the second-largest reserve currency in the world holding 2nd status in currency trading.
The Euro currency attained existence in 1995 but got introduced in 1999 as currency in the economic market. Euro is highly dominant in countries like Germany, Belgium, Finland, Vatican City, and Spain.
There are 7 denominations for notes: €5, €10, €20, €50, €100, €200, and €500. 500 Euro notes are no longer in use. But, the rest of the banknotes are still active. There are total 8 small denomination coins: 1c, 2c, 5c, 10c, 20c, 50c, €1 and €2.
All the Euro cash or coins are issued by European Central Bank situated in Frankfurt and the Eurosystem administers that regulate the circulation of the Euro.
Main Differences Between Pound and Euro
- Currency units: In simple words, 1 Euro is made of 100 cents similarly 1 pound is equal to 100 pence and is pronounced as pee. e.g., 30 pence can be pronounced as thirty pee. Therefore, the small unit for Euro is cents and for Pounds its pence.
- .World trading position: Euro stands second in the world treading market and second-largest reserved currency to be used in the EU popular states. The pound stands fourth in the trading system and third-largest reserved currency to be used in the world. The pound is the the oldest currency ever introduced in the world.
- Foreign Exchange: A pound is equal to 1.12 Euro whereas a Euro is equal to 0.89 Pound. However, the figures are never constant, they change depending upon the global market scenario.
- Managers: All the banknotes and coins are generated by banks in different countries such as Pounds are generated by The Central Bank of England likewise Euro coins and bills are generated by the European Central Bank. These banks make all the decisions and modifications whenever needed.
- Trade Rate: The exchange rate of pound is higher than Euro.
The Euro and Pound (EUR/GBP) is closely seen currency pairs in the forex market. These currency pairs can be traded in many successful ways once you have an adequate understanding of current foreign exchange and futures trading strategies.
Even if the slightest change in the exchange rate of this pair occurs, it would cause you to win or lose in the trading market. But, are there no wins without risks. So, go ahead and start capitalizing in the trading market.