BANK OF ENGLAND

THE Bank of England hit the headlines last week when it stepped in with a £ 46 billion bond- buying bailout to help save millions of pensions – and new Prime Minister Liz Truss’s shaky start in the top job.

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THE BoE was founded in 1694 to raise funds for the government during a time of war with France – typically – and from then on became the nation’s central bank.

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IN 1734, the Bank of England moved to a plush building in Threadneedle Street in the City of London.

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ITS famous nickname – The Old Lady of Threadneedle Street – comes from a James Gillray cartoon published in 1797. Over two centuries later, the nickname remains.

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BANKNOTES, which have been around for over 300 years, were originally IOUs for gold deposited at the BoE.

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PEOPLE used notes to pay for things, knowing they were backed by “The Promise” to pay the same value in gold.

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THAT’S no longer possible, so what gives modern banknotes their face value, when they cost only a few pence to make, is, in a word, “trust”.

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WE trust that banknotes can be exchanged for the things we want to buy. We trust “The Promise” that they will be accepted by others for their face value.

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THE late Her Majesty Queen Elizabeth II features on the front of the BoE’s existing three billion banknotes, but they will be phased out to be replaced with notes featuring King Charles III.

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THE BoE has more gold than almost anywhere else in the world outside of the United States, with around 400,000 gold bars stored in its vaults.

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THE average gold bar weighs 400 ounces. They are weighed and checked before being stored in one of the Bank’s gold vaults. No gold has ever been stolen from the BoE.