Currency is the medium of exchange of goods and services authorized by the government of a particular country. Currency is the backbone of an independent and strong country. There are about 180 different types of currencies across the world.
Among the leading 8 currencies, United Kingdom (UK) has Pound Sterling or Quid and Euro is the currency of the European Union, these are the most leading currencies across the world. Starting from their origin, symbol, value, they are entirely different from each other. This leads to a curiosity about knowing the facts about these leading players around the world.
Quid vs Euro
The main difference between quid and euro is that these are the currencies used by different countries across the world. Quid is a slang term used for Pound Sterling. 1 Quid is equaled 100 pence and on the other hand, 1 Euro equal 100 cents.
1 Quid (1 Pound Sterling) = 1.15 Euro
Quid, this term is originated from the Latin phrase quid pro quo meaning “an equal exchange or substitution”. It is considered an informal nickname of the official currency of the UK Pound Sterling. It is the third most used trading currency in foreign exchange markets in the world. The symbol for quid is £and the ISO code for it is GBP. The basic unit of quid is pence (singular penny).
Euro, is the official currency of 19 out of 27 member states of the European Union. This is the second-largest and second most used currency all over the world after the US dollar. The symbol of the currency Euro is € and the ISO code for it is EUR. The basic unit of Euro is cents.
Comparison Table Between Quid and Euro
| Parameters of Comparison | Quid | Euro |
| Adopted By Countries | United Kingdom (9 British territories) | European Union (19 out of 27 member states) |
| ISO 4217 code | GBP | EUR |
| Origin | It is derived from a Latin phrase | It is the abbreviation of European |
| Basic unit | Pence | Cents |
| Values in foreign exchange market | 1.59 USD | 1.49 USD |
| Governing bank | Bank Of England (BoE) | European Central Bank (ECB) |
| Official name | Pound Sterling | Euro |
| Frequently used Coins | 1p ,2p, 5p, 10p, 20p, 50p, £1, £2 | 5c, 10c, 20c, 50c,€1, €2 |
| Frequently used banknotes | £5, £10, £20, £50 | €5, €10, €20, €50, €100 |
| Inflation | 1.4% (12 months in December 2019) | -0.3% (2020) |
What is Quid?
Quid is known to be a synonym for UK currency, Pound Sterling. It is considered a slang expression for pound.
The fact is still unknown that how it became a synonym of the British currency. From this way it is assumed that there was a Royal Mint paper mill in a village called Quidhampton, in Wiltshire, England. It is assumed that the paper money printed from this mint was called quid by the villagers and from there this name is originated.
Quid is officially called the Pound Sterling. Though quid is considered informal , so the Pound Sterling is considered the national currency. The United Kingdom consists of 9 British Territories. In the trading currency list for foreign exchange market the Quid is occupying the third place. The symbol of quid is £ and the abbreviation is GBP. The basic unit of Quid is Pence (singular penny) and is abbreviated as p.
1 Quid (£) = 100 pence (p)
1p, 2p, 5p, 10p, 20p, 50p, £1, £2 and £5, £10, £20, £50 are the most circulating coins and notes around the UK. The banknotes were first introduced by King William III in his established Bank of England in 1694. At that time they were handwritten and evolved to the modern banknotes in modern times. The monetary inflation of Quid is 1.4% in 2019. The reserve exchange currency of Quid is 4.62% in 2019.
What is Euro?
The national currency of the European Union. In the list of the trading currency of foreign exchange market , it occupies a prestigious place at second. It is officially used by 19 out of 27 member states. The symbol of euro is € and abbreviation in EUR. The basic unit of Euro is Cent (c).
1 Euro (€) =100 cents (c)
The name Euro was abbreviated from European and was derived from the Latin word “Europa”. It was the most voted name from the Maastricht Treaty 1991. Maastricht treaty is a union of 12 member countries under the European Union. These countries formed a group for standardizing a common unit for monetary exchange in the EU. It was adopted on 16 December 1995. The currency first appeared in the market in 1999. The new Euro coins and notes appeared in the market on 1 January 2002.
The reserve bank of the European Union is the European Central Bank. It was established in Frankfurt, Germany. It is the administration for the circulation of coins and banknotes in the EU. 5c, 10c, 20c, 50c, €1, €2 and €5, €10, €20, €50, €100 are the most circulating coins and notes respectively in the EU. The rarely used coins are 1c and 2c.
The increase in the money supply is called monetary inflation. The inflation of the Euro is -0.3% in 2020. In 2018, there were about 21 billion euro banknotes and almost 130 billion Euro coins in circulation. After the US dollar, the Euro is holding its place as the reserve currency around the world. It increased from 18% in 1999 to 27% in 2008 and then dropped to 20.54% in 2019.
Main Differences Between Quid And Euro
- Quid is a UK currency whereas Euro is a European Union currency.
- Quid is an informal name whereas Euro is an official name of the currency.
- One Quid is equaled 100 pence whereas one Euro is equal to 100 cents.
- The governing bank of quid is the Bank of England and on the other hand, Euro is governed by European Central Bank.
- The quid appeared in 1489 and the Euro appeared in 1999.
- The value of Quid is higher in foreign markets than the Euro.
- The symbol of quid is £ and the symbol of Euro is €.
- The Reserve Currency of Quid is 4.62% and Euro is 20.54% in 2019.
Conclusion
There is a huge difference between the two currencies Quid and Euro. Quid is also the oldest and still in use currency across the world. Euro is a new emergent currency from around 1999. These leading currencies have high values in foreign exchange markets. Here were the differences between quid and Euro. You can take the information from the article and implement the use in trading. In the future, there is also a chance of increasing the reserve currency shares of Euro. Both the currencies are most widely used across the globe and have great competition in the foreign markets.
References
- https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12703
- https://link.springer.com/article/10.1057/palgrave.development.1100403