Difference Between GBP and Euro

GBP vs Euro
 

GBP and Euro are two of the most important currencies of the world. While GBP is the official currency of United Kingdom and is known the world over as Pound Sterling, Euro is the official currency of many countries that are a part of the European Union. There are many differences between these two currencies that will be highlighted in this article.

GBP

The official currency of UK is Pound Sterling, also known as GBP. It is a strong currency that is currently valued even higher than the Greenback and the Euro. There are many countries of the world naming their currencies as pound. This is why the GBP is referred to as Pound Sterling. There are 100 pennies in a Pound. GBP ranks fourth when it comes to high trading currencies in forex markets, the top three being USD, Euro, and Yen. It is one of the few currencies that decide IMF SDR.

Euro

Euro is a very powerful currency of the world being used by 23 countries of the European Union. Not all countries of EU make use of Euro, with UK, Sweden, and Denmark still using their own currencies instead of the common currency of Eurozone. The symbol of Euro is a round E with a single or double cross lines. Like a dollar, a Euro is divided into 100 cents. With 17 out of 27 EU member states using Euro, the number of people having Euro as their currency is more than 300 million at present. Surprisingly, there are another 175 million people using currencies that are linked with Euro, with 150 million in Africa alone.

GBP vs Euro

• Euro is the currency of 17 out of 27 member states of European Union, whereas GBP is the currency of UK.

• GBP is simply called Pound, but with many other countries naming their currencies as Pound, the British Pound is referred to as Pound Sterling.

• Despite Euro being a very powerful currency of the world, GBP has a value higher than that of Euro.

• GBP is fourth highest trading currency in forex markets while Euro is the second highest traded currency in these markets

• GBP is divided into 100 pennies, whereas Euro is divided into 100 cents.

• The symbols of the two currencies are different

• Euro came into existence on 1 January 1999

• Euro has surpassed USD in terms of cash circulation

• Euro makes Eurozone as the 2nd largest economy of the world