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The answer seems easy, 1 GBP = 100 GBX. But I came across a few sites which return variable conversion value between GBP and GBX.

https://www.mataf.net/en/currency/converter-GBP-GBX?m1=1.00

Now I am wondering if 1 GBP is always equals to 100 GBX or there are some other factors involved in the conversion.

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  • It's strange. I don't know where they get their non-constant error from, but it is an error. It's as if they're converting via an intermediate currency with low precision and maybe a time delay.
    – Chris H
    Commented Jun 11 at 10:25
  • @ChrisH they are probably treating it as a cross rate via USD from experience. It is a weird error but it is understandable when changing all crossed currencies through the major
    – MD-Tech
    Commented Jun 11 at 10:43
  • @MD-Tech I thought something similar. I suspect that for major exchanges like GBP-EUR with well-documented rates they go direct, but go via USD as a fallback. And because GBX isn't a real currency, it uses the fallback
    – Chris H
    Commented Jun 11 at 10:47
  • @ChrisH I realised that I'd written an answer so upgraded my comment. I suspect even GBPEUR is going via crossing the fiber and cable rates as it makes sense that they are being consistent. I take your point that they could be doing it based on liquidity but that's the sophisticated route and this site is apparently not that sophisticated!
    – MD-Tech
    Commented Jun 11 at 10:51
  • 3
    Once upon a time before the UK currency went on a decimal system, , there used to be 240 pence in a British pound, which was broken down into 20 shillings of 12 pence each (also 4 crowns of 5 shillings each). "Half a crown" was also a commonly used expression for 30 pence. There were smaller denominations too, hence phrases such as tuppence ha'penny.... Commented Jun 11 at 13:58

2 Answers 2

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This is definitely an error. There are by definition 100 GBX in 1 GBP.

The cause is likely to be they are probably treating it as a cross rate via USD from experience. It is a weird error but it is understandable when changing all crossed currencies through the major. This is because in general the rate with respect to USD for any given currency is the most liquid market and as such when trying to determine the "cross rate" between two non-USD currencies those two rates are used, for example:

To get the GBPCHF cross rate the calculation is to cross the GBPUSD and USDCHF rates.

If the site is getting GBPUSD rates and (presumably) USDGBX or GBXUSD rates they will erroneously cross them expecting that to be the most liquid pair of contracts.

It is probably a good idea to raise this with that site.

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It could be some software figuring out that 1 pound = $1.27, one penny = $0.01, and therefore 1 pound = 127 pence.

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