The British Pound Sterling is the official currency of the United Kingdom, and is one of the most widely traded currencies in the world. It is used by investors and financial markets as a benchmark for global exchange rates, and as a major reserve currency. It is also used by governments, businesses and individuals to buy and sell goods and services around the world. It is a stable currency, and its value is closely linked to the strength of the UK economy. It is often used as a hedge against currency fluctuations, and is an important factor when investing in global markets.