In this article, we’re answering “What is the currency of London?” But, instead of keeping you waiting, the answer is the British pound sterling.
Below, we’ll share everything you need to know about the pound sterling. We’ll also answer important questions that anyone traveling to London should consider when it comes to converting and spending money.
This article is part of our free series on international banking, international transactions, and account opening.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Is the Currency of London?
- Benefits of British Pounds
- Where Can I Get British Pounds?
- Can You Use Foreign Currency in London?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
What Is the Currency of London?
The currency of London is the pound sterling or GBP (Great British Pound) with the currency symbol £ and the ISO 4217 Code GBP. In addition to being London’s official currency, it is the UK currency as well, making it legal tender in England, Wales, Scotland, and Northern Ireland.
Of course, if you are traveling to London, you should aim to bring GBP with you before arriving. Otherwise, you may find that the available exchange rates in London can be very expensive.
This is true whether you attempt foreign exchange in London, at Heathrow, or at a tourist destination like a hotel or tourism operator. In short, cash in London is not cheap. So, if you can avoid the need to get your travel money in London, it is almost always recommended.
Where Can I Get the British Pound?
As a major international currency, British pounds are available at most foreign exchange shops around the world. Likewise, British pounds can be sourced at retail and commercial banks in most countries.
However, it is always best to contact your bank beforehand and let them know that you want to buy foreign currency. By contacting them first, you can request a specific amount and ask when they will have it available for you.
That said, if you are already in London and you would like to get British pounds, here are the available options.
Foreign Currency Exchange
London is home to more than 3,760 currency exchange shops (according to Google). So, there is no shortage of options for changing your foreign currency into British pounds. However, it’s extremely important that you use a reputable currency exchange and visit several locations in order to get the best price possible.
Cash Machines
If you have a debit card on you, you can also withdraw British pounds directly from an ATM. When doing so, you should use an ATM from a large British bank. Otherwise, you may be charged additional fees on top of the foreign withdrawal fees that your bank will likely charge.
Airport or Hotels
Additionally, many travelers choose to convert their money at airports or the hotel where they are staying. While this is certainly a convenient option, it can be expensive in terms of the exchange rate you end up paying. With this in mind, it’s always best to compare the exchange rate offered by the hotel or airport currency exchange desk to the market rate before proceeding.
Can You Use Foreign Currency in London?
Yes, you can use foreign currency in London at certain retailers, hotels, and tourism operators. However, these locations will convert your foreign currency into pounds sterling before completing your payment.
When these locations convert your currency, they will charge a premium on the market foreign exchange rate. As a result, you will end up paying significantly higher conversion rates than you would if you converted your currency through a reputable money exchange service.
That said, there is one other option that you may want to consider instead, which is a foreign credit card.
Can You Use Foreign Credit Cards in London?
Yes, you can use foreign credit cards in London. In fact, if you have the right foreign credit card, it may be one of the most convenient and affordable options for spending money in London and the wider United Kingdom.
That said, in order for a credit card to be an affordable choice, it needs to be a credit card that does not charge foreign transaction fees. In other words, when you use your credit card in a country outside of where it was issued, you are not charged a fee by your credit card company.
Additionally, credit cards that do not charge foreign transaction fees, tend to also not add on any premiums on the foreign exchange rate.
Not surprisingly, both the foreign exchange rate and the foreign transaction fees are important considerations as they can increase the cost of your purchases significantly.
Benefits of British Pounds
The benefits to using British pounds while visiting London range from ease of use at a wide range of retailers to not worrying about foreign exchange rates. For this reason, we typically suggest having a small amount of cash on hand when traveling to London, along with a credit card that does not charge foreign transaction fees.
The credit cards that fall into this category are available from banks in the United States, several countries in Europe, and several offshore jurisdictions. However, it’s important to note that not all banks offer these credit cards. Instead, you should consider opening with banks that cater to foreign non-residents and frequent travelers.
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into what the currency of London is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Much Is $1 in London?
Over the last five years, the value of $1 in London when converted into pounds has ranged from a low of £0.70 and a high of £0.92. That said, the average each year has changed dramatically, in 2019 the average was £0.89, in 2020 it was £0.87, in 2021 it was £0.84, and in 2022 it was £0.92.
How Much Is $100 in Pounds in London?
Over the last five years, the value of $100 in London when converted into pounds has ranged from a low of £70 and a high of £92. That said, the average each year has changed dramatically, in 2019 the average was £89, in 2020 it was £87, in 2021 it was £84, and in 2022 it was £92.
How Much Is $1,000 US Dollars in London?
Over the last five years, the value of $1,000 US dollars in London when converted into pounds has ranged from a low of £700 and a high of £920. That said, the average each year has changed dramatically, in 2019 the average was £890, in 2020 it was £870, in 2021 it was £840, and in 2022 it was £920.
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