What Countries Use Pounds as Currency?

The term “pound” identifies a currency unit with historical roots linked to a specific weight. This monetary designation originates from the Latin phrase lībra pondō, which translates to “a pound by weight.” The familiar symbol for the pound, ‘£’, is a stylized representation of the letter ‘L’, also derived from libra. Historically, a pound currency often represented the value of a pound of silver, forming the basis for its adoption as a monetary unit across various regions. While many currencies globally share the name “pound,” it is important to understand that each is a distinct and independent currency, possessing its own unique value and issuing authority.

The British Pound Sterling

The British Pound Sterling (GBP) stands as the official currency of the United Kingdom, encompassing England, Scotland, Wales, and Northern Ireland. Identified by the ISO 4217 code GBP and symbolized by ‘£’, it holds the distinction of being the world’s oldest currency in continuous use. The British Pound is a major player in global finance, currently ranking as the fourth most traded currency in the foreign exchange market and the fourth most held reserve currency in global reserves.

Its influence extends beyond the UK’s mainland to several associated territories. The Crown Dependencies, including Jersey, Guernsey, and the Isle of Man, issue their own versions of the pound, which are pegged at par with the British Pound Sterling. This arrangement allows for local currency design while maintaining parity with the sterling. Similarly, various British Overseas Territories, such as Gibraltar, the Falkland Islands, Saint Helena, Ascension, and Tristan da Cunha, also utilize the pound. Some of these territories, like Gibraltar and the Falkland Islands, issue their own local versions of the pound that are likewise pegged to the British Pound Sterling.

Other Sovereign Pound Currencies

Beyond the British Pound Sterling, several independent nations maintain their own distinct currencies also named “pound.” The Egyptian Pound (EGP) is the official currency of Egypt, playing a central role in the country’s economy. It is also unofficially used in the Gaza Strip.

The Lebanese Pound (LBP) serves as the currency of Lebanon. In Syria, the Syrian Pound (SYP), also known as the Syrian Lira, is the national currency.

Sudan uses the Sudanese Pound (SDG), issued by its Central Bank. Neighboring South Sudan, which gained independence in 2011, introduced its own currency, the South Sudanese Pound (SSP). This currency replaced the Sudanese pound at par upon its introduction.

Countries That Formerly Used the Pound

Many countries historically utilized a currency named “pound” but have since transitioned to different monetary units. During colonial periods or early independence, nations like Australia and New Zealand used the pound. Australia replaced its Australian pound with the Australian dollar in 1966, while New Zealand transitioned from the New Zealand pound to the New Zealand dollar in 1967.

Several African nations, including Ghana, Nigeria, and South Africa, also formerly used the pound. For instance, South Africa adopted the South African rand in 1961, replacing the South African pound. These transitions often occurred due to shifts towards decimalized currency systems, efforts to assert monetary independence, or the decision to join new currency unions.