The British pound (GBP) is generally stronger than the euro (EUR) due to higher interest rates set by the Bank of England, which attract foreign capital, combined with a relatively more resilient, though sluggish, UK economic outlook compared to the Eurozone. The pound often benefits from a more hawkish monetary policy stance and, occasionally, safe-haven flows during Eurozone economic instability.
The value of the pound has jumped up recently because the Federal Reserve has indicated they want to aggressively cut their interest rates, while the BoE has indicated they want to be more conservative about it.
Often, exchanging money before departure offers better rates and lower fees than waiting until you arrive. From bank exchange rates to ATM strategies, learn how to get the best conversion rates and avoid unnecessary fees, ensuring you're never caught without funds during your adventures.
Beyond hard military power, the UK wields extensive soft power and diplomatic influence. British culture and education – from the English language to the Premier League and world-renowned universities – ensure the UK remains among the most influential nations.
The UK chose not to adopt the euro, retaining the British pound as its currency. The UK's decision rested on five economic tests that the euro failed to meet. Control over interest rates was a significant factor in the UK's choice to keep the pound. The pound's use made Brexit's currency transition easier for the UK.
Tip: Use cash for small-ticket items such as souvenir shopping, street markets, taxis, bus fare, local tour guides and tips. Some foreign merchants don't accept debit or credit as forms of payment, so you should carry some cash in the local currency with you.
The British pound has often been stronger than the U.S. dollar. This means it typically has a higher nominal value in exchange markets. The exchange rate between currencies reflects this strength and is influenced by factors like interest rates, central bank policies, and economic conditions.
