The pound sterling is currently the most valuable global currency in the world. One pound sterling is 1.7 times more expensive than the US dollar. There are more expensive monetary units in the world (Kuwaiti dinar or Maltese lira), but they all have very, very limited circulation.
Instructions
Step 1
The first reason for the high cost of the British currency can be called historical. The pound sterling is the currency with the longest history, dating back to the 12th century. In the 17th-19th centuries, the pound sterling firmly occupied the position of the world global reserve currency and ceded this role to the dollar only after the Second World War. However, since 2006, after the start of the global financial crisis, the British pound has gradually begun to regain its status as a significant world currency.
Step 2
The second reason lies in its popularity in the FOREX international currency market. Sharp fluctuations of the pound against other currencies attract the attention of traders from all over the world. If a trader works with short-term transactions, it is the pound that allows him to achieve high profits. Due to its high profitability when playing on the difference in interest rates, the pound sterling is highly popular. As you know, the higher the demand, the higher the price, and the British currency steadily takes the position of the most expensive currency in the world.
Step 3
The third reason is the stable growth of the UK economy: the growth of GDP and industrial production has not stopped for more than 4 years. The export of engineering products, chemical and industrial goods is constantly growing. And, as you know, the strengthening of the national currency helps to reduce the cost of imported goods and increase the value of their own. The United Kingdom continues to maintain its status as the world's financial services capital.
Step 4
Thanks to the US dollars and euros, which are most often used in international foreign exchange transactions, the pound sterling is less affected by the global economic downturn and financial crises. This allows the British currency not only to maintain its position against the dollar and euro, but also to steadily rise in price.
Step 5
In 1996, the European Union was created. All member countries of this union by 1999 had to switch to the common European currency - the euro. Only England, being a member of the EU, refused to introduce the euro on its territory in order to develop the economy and the country. As a result, in the UK, transactions are concluded mainly in pounds. And this also contributes, albeit to a lesser extent, to the high cost of British money.
Step 6
Against the backdrop of ongoing financial and economic problems in the United States and Europe, the United Kingdom looks increasingly attractive in the eyes of international investors. In terms of growth rates, the British economy came out but second after Germany in Europe and fifth in the world. Despite European and global economic problems, the UK is showing small but stable economic growth, which in the long term will allow it to return to its status as the first economic power in the world.
