How does british currency work?

The basic unit is the pound sterling ("pound", for short), currently worth about 1.33 Euro or 1.96 US dollars. The pound is divided into 100 "new pence" (so-called to distinguish them from the pre-decimalisation "old pence", of which there were 240 in a pound), however the Word "new" has not appeared on coinage since 1982. Coins are minted in denominations of 1, 2, 5, 10, 20 and 50 pence as well as 1 pound and 2 pounds; banknotes are issued for 5, 10 and 20 pounds (larger notes exist, but are less commonly used). Since the five pence coin has the same value as the pre-decimal shilling, it is sometimes still referred to as a shilling. "Quid" is a common slang term for a pound.