International Finance Assignment, SC, Malaysia The British Pound Sterling (GBP) Is The Fourth Most Popularly Traded Currency And The Third Most Commonly Held Reserve Currency

The British Pound Sterling (GBP) is the fourth most popularly traded currency and the third most commonly held reserve currency. The British Pound Sterling represents the economy of The United Kingdom, which consists of England, Scotland, Wales, and Northern Ireland; the Pound Sterling is the sixth largest currency in terms of Gross Domestic Product, and the 8th largest in terms of Purchasing Power Parity in the world.

However, in 2022, the GBP seems to be volatile and keep on decreasing since March. The GBP reach its lowest point on 27th September 2022 at USD1.06852/GBP since 1985. Among the reasons for is fall, in GBP value is local and international traders appearing increasingly anxious about the UK’s economic outlook, with runaway inflation caused by Russia’s war in Ukraine, which poses a threat to economies around the world including the UK.