The official currency of the United Kingdom is the British Pound Sterling, abbreviated as GBP. It is one of the oldest currencies in the world. Currently is the fourth most traded currency after US Dollar, Euro, and Japanese Yen. India and the UK share a long history, and so do their currencies. Read to learn more about INR to GBP conversion and the relationship between the two currencies.
How to convert INR to GBP?
To convert INR to GBP, you have to divide the amount you wish to convert with GBP to INR exchange rate to get the value in British Pound Sterling.
Let’s understand this with an example. If you want to convert INR 1,00,000 into Ponds, then you will have to divide this by the current exchange rate. As of 31st December 2022, the GBP to INR exchange rate is Rs 100.11. By dividing INR 1 lakh by this rate, you will get GBP 998.89.
Though converting INR to GBP looks like a simple task, with the exchange rate changing every minute, it can become cumbersome. Hence, it is better to use a currency converter to do the task within seconds. Jupiter’s free currency converter is a simple tool for INR to GBP and GBP to INR currency conversion. It gives results within seconds and also updates the exchange rate every minute.
Relation between INR to GBP
After independence, the Rupee was pegged to the British Pound Sterling. The value of GBP to INR was Rs 13.33, and one Pound was USD 4.03. However, in 1949 the Pound Sterling was devalued to USD 2.80 to improve the trade balance, manage inflation and debt, and stabilize exchange rates.
This also resulted in a slight devaluation of the Indian Rupee, and 1 GBP was Rs 13.30. However, as per the Bretton Woods System, all countries pegged their currency to the US Dollar, and India was one of them. Until 1966 INR was pegged to the Dollar, and India started following the floating exchange rate system.
What factors affect the British Pound?
The following factors affect the British Pound.
Post-Covid, all countries have been battling inflation, and the UK is no exception. Compared to November 2021, the Consumer Prices Index is higher by 9.3% in November 2022. Its inflation index rose by 0.4% in November 2022 compared to the previous month. As per the target set by the Bank of England (BoE), if inflation rises above 2% any month, the value of the British Pound Sterling will fall against other currencies.
Just like in India, the interest rates are set by the Bank of England to control inflation and promote economic growth. An increase in interest rates will help control inflation and also increase the value of the Pound. In contrast, a fall in interest rate will increase the money supply and lead to high inflation, which in turn depreciates the Pound.
Balance of payments
If the balance of payments is in surplus, it means the UK is exporting more than it imports, and more currency is coming into the country. This will increase investor confidence in the forex market, leading to currency appreciation. Alternatively, the Pound will depreciate if the imports are more due to weak investor sentiment.
The UK is the net exporter of oil, and increasing oil prices will strengthen the British economy and hence the Pound. However, a low oil price will result in the depreciation of the Pound as the economy of the country will be affected.
Political crisis always weakens the domestic currency. A country with an unstable government is considered risky for investment and trade. The UK has seen a lot of political instability in the last six years, particularly the Brexit crisis. This led to a fall in the value of the Pound against US Dollars and Euros.
Why is GBP to INR increasing?
In 2022, the Pound Sterling fell against the Indian Rupee by almost 13% in the first nine months. This was driven by several reasons, including inflation and tax cuts. However, after Liz Truss resigned as the Prime Minister in October 2022, the GBP to INR rate started increasing. This is mainly because UK Prime Minister Rishi Sunak dropped the tax cuts plan and emphasized strengthening the current economic situation by tackling inflation.
Where can I convert INR to GBP?
You can convert Indian Rupee into British Pound Sterling through a bank or money exchanger. You can personally visit their branch, fill out a form, submit proof of identity, and pay in cash or cheque. In return, you can collect the money in cash or get it transferred to your account.
Alternatively, you can also convert your money online by visiting the websites of banks or money exchangers. They will either deliver the money to your doorstep or load it into a prepaid card.
Frequently Asked Questions
What was the highest Pound to INR ever?
The highest ever pound to INR exchange rate is Rs 103.31, which was in May 2021.
Why is GBP always so strong?
The Pound is one of the strongest currencies in the world due to its economic growth. It ranks fifth in the world in terms of GDP (gross domestic product). It is also one of the most developed nations and has a huge economic, scientific, and political influence on the world. Moreover, for a long time, until World War I, the British Pound Sterling was the primary medium of exchange for the world.
When was 1 pound equal to 1 rupee?
The Pound was never equal to Indian Rupee. After India gained its independence in 1947, it pegged its currency to the British Pound, where 1 GBP equals INR 13.33.
Why does the currency of the United Kingdom have two names, Pound Sterling and Great British Pounds?
The official currency of the United Kingdom is British Pound Sterling. The country used to measure its currency in pounds, and the legal tender back then was silver. The silver was of high quality or 'sterling' quality. Until 1816 the UK used silver as a basis for currency, and then it adopted the gold standard. However, the name stuck, and the currency of the UK is the British Pound Sterling, abbreviated as GBP.
Which currencies have more value than GBP?
At present, four currencies have a higher value than the GBP. They are Kuwaiti Dinar, Bahraini Dinar, Jordanian Dinar, and Omani Rial.
Why is GBP also known as the ‘Quid’?
Quid is slang for the British Pound Sterling and comes from the Latin phrase, 'quid pro quo', which means something for something. A quid is 100 pence (plural for pennies) or one Pound.
What was INR to GBP in 1947?
In 1947 1 GBP equalled Rs 13.33. So the INR to GBP rate was Rs 0.075.
List of supported countries
Common currency conversion values at today’s exchange rate:
Commonly used currency terms are:
1 crore which has 7 zeroes - 1,00,00,000
1 Arab which has 9 zeroes - 1,00,00,00,000
1 Kharab which has 11 zeroes - 1,00,00,00,00,000
1 Neel which has 13 zeroes - 1,00,00,00,00,00,000
1 Padma which has 15 zeroes - 1,00,00,00,00,00,00,000
1 million which has 6 zeroes - 1,000,000 (Ten lakh in Indian common currency terms)
1 billion which has 9 zeroes - 1,000,000,000 (One Arab in Indian common currency terms)