British Pound price today

The British pound usually sits above the dollar and the euro in Tehran's currency rate tables, and it is one of the most important rates for families whose children study in the UK or for people moving there to work and live. On this page you can see the live price of the pound sterling in Tehran's open market in Toman, followed by the history of this currency, the role of the Bank of England, the factors that affect its Toman rate, and tips for buying pounds.

Pound sterling: the world's oldest currency in use

The pound sterling (GBP) is the official currency of the United Kingdom, i.e. England, Scotland, Wales and Northern Ireland, and is considered the oldest currency that has remained in continuous circulation to this day. Each pound is divided into 100 pence. Its symbol is £, and in global markets it is sometimes called "sterling" or, for short, "cable" (for the pound-dollar pair).

Before World War I, the pound held the position the dollar holds today: the main currency of world trade and reserves. Today London is still one of the largest currency trading centers in the world, and the pound is among the most traded currencies globally. The UK never joined the euro, and with its exit from the European Union (Brexit) it further separated its economic path from the eurozone.

The Bank of England and monetary policy

UK monetary policy is set by the Bank of England , which was founded in 1694 and is one of the oldest central banks in the world. The bank's Monetary Policy Committee (MPC) decides on interest rates several times a year, with the aim of keeping inflation around 2 percent.

Bank of England decisions, especially when they differ from market expectations, usually cause sharp moves in the pound. Compare the current interest rates of major central banks on the global interest rates page.

What do Iranians use the pound for?

• Education: UK universities are well-known destinations for Iranian students. Tuition for international students and living costs, especially in London, are set in pounds and are usually large sums; that is why families follow the pound's fluctuations closely.
• Visa and residence: For student visas and some other visas, proof of funds in pounds must be shown, and healthcare and visa fees are also paid in pounds.
• Travel and family visits: The Iranian community in the UK is large, and family trips create demand for pound banknotes.

On the other hand, direct trade between Iran and the UK is limited; so the pound market in Tehran is smaller than that of the dollar and the dirham, and this small size widens the gap between buy and sell rates.

How is the pound's Toman rate formed?

The price of the pound in Tehran is made up of two components: the value of the rial against the dollar and the value of the pound against the dollar in the global market. In other words, the pound's Toman rate is roughly equal to the open-market dollar price multiplied by the global pound-to-dollar (GBP/USD)rate. If the dollar in Tehran stays flat but the pound strengthens in London, the pound becomes more expensive in Tehran too.

Likewise, to compare the pound and the euro, you can check the global euro-to-pound (EUR/GBP) rate; this ratio usually matches the ratio of the euro price to the pound price in Tehran.

Keep a few points in mind when reading the pound price on this page:

• Prices are in Toman , and each Toman is ten rials; banks and official systems usually quote rates in rials.
• Exchange offices quote two rates: the buy rate , at which they buy pounds from you, and the sell rate , at which they sell to you. For lower-volume currencies like the pound, this gap widens on volatile days.
• In the "Price source" section at the top of the page you can choose a different source and view the candlestick chart on daily and weekly timeframes, so you can identify the trend better than from a single live number.

Factors affecting the pound price

1. Domestic factors in Iran

Inflation, foreign currency income, sanctions and political expectations determine the rial's value against all currencies. So much of the pound's long-term movement in Tehran is simply the dollar's movement.

2. The UK economy

UK inflation figures (CPI), employment and wage data, economic growth and purchasing managers' indices (PMI) affect the pound. See the release times of these reports and Bank of England decisions in the Teagle economic calendar .

3. Political events

The pound is sensitive to UK domestic politics. A well-known example was the 2016 Brexit referendum, after which the pound suffered one of its biggest one-day drops in recent decades once the result was announced. Elections, government budgets and financial crises can also increase the pound's volatility.

4. Global market risk appetite

During crises and capital flight toward safe assets, the pound usually weakens against the dollar, because it is not considered a safe-haven currency like the yen and the franc.

Tips for buying and holding pounds

If you need pounds for a specific expense such as next term's tuition, buying in several rounds instead of all at once reduces the effect of short-term fluctuations. But if you are simply looking to preserve the value of your money, note that holding pounds carries, in addition to rial risk, the risk of the pound fluctuating against the dollar.

Trading the pound in global markets

In forex, the pound is one of the more volatile of the major currencies. Pairs such as GBP/USD and pound-to-yen (GBP/JPY) are known for sharp moves, and most of their trading volume occurs during the London session; see market opening times in Iran time on the global market hours page. These trades are made with leverage and carry high risk; before signing up, read the forex broker reviews .

See the full list of open-market currency rates in the Iranian market currencies section . The information on this page is for informational purposes only and is not a recommendation to buy or sell. Prices are obtained from the stated sources and may differ slightly from the rate at your local exchange office.