The British Pound Sterling (GBP) is the official currency of the United Kingdom. As one of the world's major currencies, the GBP plays an important role in the global financial markets. It is used as a medium of exchange for international business transactions, and is also used as a store of value by investors. The currency is often used to hedge against currency fluctuations and to diversify portfolios. As a global reserve currency, the Pound Sterling also helps to promote economic stability and is used to back international investments. In addition, the Pound Sterling is a popular currency for speculators, who use it to take advantage of short-term fluctuations in currency prices.