page_title: Pound sterling
section_title: Legal tender and national issues
hierarchical_section_title: Pound sterling / Legal tender and national issues
context_page_description: Pound sterling, known in some contexts simply as 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. The Pound sterling is the oldest currency in continuous use. A number of nations that do not use sterling also have currencies called the pound.
  Sterling is the fourth most-traded currency in the foreign exchange market, after the United States dollar, the euro, and the Japanese yen. Together with those three currencies and the Chinese yuan, it forms the basket of currencies which calculate the value of IMF special drawing rights. As of 30 September 2019, sterling is also the fourth most-held reserve currency in global reserves.
  The British Crown dependencies of Guernsey, Jersey and the Isle of Man produce their own local issues of sterling which are considered fully equivalent to UK sterling in their respective regions. The pound sterling is also used in Gibraltar, the Falkland Islands, Saint Helena and Ascension Island in Saint Helena, Ascension and Tristan da Cunha.
context_section_description: Legal tender in the United Kingdom is defined such that "a debtor cannot successfully be sued for non-payment if he pays into court in legal tender." Parties can alternatively settle a debt by other means with mutual consent. Strictly speaking, it is necessary for the debtor to offer the exact amount due as there is no obligation for the other party to provide change.
  Throughout the UK, £1 and £2 coins are legal tender for any amount, with the other coins being legal tender only for limited amounts. Bank of England notes are legal tender for any amount in England and Wales, but not in Scotland or Northern Ireland. (Bank of England 10/- and £1 notes were legal tender, as were Scottish banknotes, during World War II under the Currency (Defence) Act 1939, which was repealed on 1 January 1946.) Channel Islands and Isle of Man banknotes are legal tender only in their respective jurisdictions.
  Bank of England, Scottish, Northern Irish, Channel Islands, Isle of Man, Gibraltar, and Falkland banknotes may be offered anywhere in the UK, although there is no obligation to accept them as a means of payment, and acceptance varies. For example, merchants in England generally accept Scottish and Northern Irish bills, but some unfamiliar with them may reject them. However, Scottish and Northern Irish bills both tend to be accepted in Scotland and Northern Ireland, respectively. Merchants in England generally do not accept Jersey, Guernsey, Isle of Man, Gibraltar, and Falkland notes but Isle of Man notes are generally accepted in Northern Ireland. Bank of England notes are generally accepted in the Falklands and Gibraltar, but for example, Scottish and Northern Irish notes are not. Since all of the bills are denominated in pounds sterling, banks will exchange them for locally issued bills at face value, though some in the UK have had trouble exchanging Falkland Islands pounds.
  Commemorative £5 and 25p (crown) coins, and 6p coins made for traditional wedding ceremonies and Christmas gifts, rarely seen in circulation, are legal tender, as are the bullion coins issued by the Mint.
caption: The British Islands (red) and overseas territories (blue) using the pound or their local issue