The British Pound (or Pound Sterling) is represented by the symbol £, which originated from the Latin word for pound - libra. The pound used to represent twenty shillings. Each shilling was worth twelve pence, so a pound would be two hundred and forty pence. In 1971, system of decimalization was adopted whereby one pound was equal to one hundred new pennies.
The Bank of England - the central bank for the United Kingdom - was established in 1694. Its functions include policies aimed at maintaining price stability and promoting
the economic policies of the British Government. When the Labor Party took the majority in the House of Commons in 1997, they worked to give power to the bank to set interest rates. The bank also issues banknotes for England and Wales. Scottish and Northern Irish banks may issue their own banknotes, but they must be backed by deposits in the Bank of England. Information on the bank - including current rates and news releases - may be found on their official website.
Although the United Kingdom is a member country of the European Union, it has not elected to adopt the euro currency. The annual deficit to GDP may currently be above the defined threshold to allow for the adoption of the euro.
The economic history of the British Empire has undergone many changes over the centuries. From the Age of Mercantilism to the Industrial Revolution and the New Imperialism, England and the empire had periods of distinct development. The late 20th century was marked by politics which likely provided the catalyst to Black Wednesday - a day in which the pound was withdrawn from the European Exchange Rate Mechanism after it fell below its agreed limit.
Currently, the United Kingdom is a major financial center for international business. The service sector claims the largest share of jobs, but other sectors are present. Around 16 percent of the national output is from manufacturing, with engineering topping the largest sector within. Agriculture only accounts for around 1 percent of the workforce, nearly the same amount as the energy sector. In 2004, just over 74 percent of the electricity production in the United Kingdom came from fossil fuels; however, a recent initiative to build nuclear generators may boost energy reserves.
The United Kingdom produces around 60 percent of its overall food requirements; therefore, foodstuffs are an important key when discussing imports. Other items imported to the Isles include: machinery, fuels, and manufactured goods. Tourism also plays a large role in the economy of the United Kingdom.
Disclaimer: There is risk of loss in all commodities trading. Losses can exceed your account size and/or margin requirements. Commodities trading can be extremely risky and is not for everyone. Some option strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. Futures Press Inc., the publisher, and/or its affiliates, staff or anyone associated with Futures Press, Inc. or www.learnaboutfutures.com, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Past results are by no means indicative of potential future returns. Options DO NOT necessarily move lock step with the underlying futures contract. Information provided is compiled by sources believed to be reliable. Futures Press, Inc., and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been cancelled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.