The British Pound Sterling (GBP) is the official currency of the United Kingdom and is an important global reserve currency. In the financial markets, it is used as an international medium of exchange and a safe-haven asset. Investors use the British Pound Sterling to gain exposure to British assets and investments and to hedge their financial portfolios against risks. It is also used as a tool in international currency trading and as a base currency for pricing commodities, such as gold and oil. The British Pound Sterling is especially important for investors looking to diversify their global portfolios or hedge against currency fluctuations.