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Quick Answer. About.com reports that the legal currency in London is the pound sterling. The official London visitor's site notes that despite being a member of the European Union, the United Kingdom does not use the Euro as standard currency. Continue Reading.
Generally it is more expensive to live in London and the south-east of England, and cheaper up north. Britain's currency is based on the pound sterling (Â£) which is divided into one hundred pence (100p).