the Cold War, defence policy has a stated assumption that "the most demanding operations" will be undertaken as part of a coalition. According to sources which include the Stockholm International Peace Research Institute and the International Institute for Strategic Studies, the UK has either the fourth- or the fifth-highest military expenditure. Total defence spending amounts to 2.0 per cent of national GDP. Economy Overview The United Kingdom uses the pound sterling which is the world's oldest currency that is still in use and that has been in continuous use since its inception. It is currently the fourth most-traded currency in the foreign exchange market and is the world's fourth-largest reserve currency (after the Dollar, Euro, and Yen). London is the world capital for foreign exchange trading, with a global market share of 38.1% in 2022 of the daily $7.5 trillion global turnover. Since 1997 the Bank of England's Monetary Policy Committee, headed by the Governor of the Bank of England, has been responsible for setting interest rates at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year. Lloyd’s of London is the worlds largest insurance and reinsurance market and is located in London, UK. The UK has a partially regulated market economy. Based on market exchange rates, the UK is today the fifth-largest economy in the world and the second-largest in Europe after Germany. HM Treasury, led by the Chancellor of the Exchequer, is responsible for developing and executing the government's public finance policy and economic policy. The Bank of England is the UK's central bank and is responsible for issuing notes and coins in the nation's currency, the pound sterling. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover their issue. The service sector made up around 80% of the UK's GVA in 2021. London is one of the world's largest financial centres, ranking second in the world, behind New York City, in the Global Financial Centres Index in 2020. London also has the largest city GDP in Europe. Edinburgh ranks 17th in the world, and sixth in Western Europe in the Global Financial Centres Index in 2020. Tourism is very important to the British economy; with over 27 million tourists arriving in 2004, the United Kingdom was ranked as the