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Pound at 3 year high against the Euro


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Well one bonus to us not being part of the uncertainty overclouding our European friends, the pound is going from strength to strength against the Euro.

 

"Leading bureaux de change are selling euros at a rate of 1.20 to the pound for the first time in three and a half years"

http://www.bbc.co.uk/news/business-17988159

 

The UK is fast becoming the place to put your money.

 

Certainly it will help with this years trip to the Med :)

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Well one bonus to us not being part of the uncertainty overclouding our European friends, the pound is going from strength to strength against the Euro.

 

It will though make our exports more expensive and imports cheaper. So we'll suck in more imports and export less, causing a worsening balance of payments deficit. As at the moment interest rates can't be cut any more we can't do anything to reverse this.

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It will though make our exports more expensive and imports cheaper. So we'll suck in more imports and export less, causing a worsening balance of payments deficit. As at the moment interest rates can't be cut any more we can't do anything to reverse this.

 

considering we have a trade deficit, it works out better for the nation if our currency is worth more then those we tend to buy the majority of goods from. The £ is undervalued and its only so low because the last government wanted the £ and the € to be trading at 1 for 1 so it would be easier for us to join the currency.

 

Weak currencies are only useful for countries that export more than they import, such as China and India.

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considering we have a trade deficit, it works out better for the nation if our currency is worth more then those we tend to buy the majority of goods from. The £ is undervalued and its only so low because the last government wanted the £ and the € to be trading at 1 for 1 so it would be easier for us to join the currency.

 

Weak currencies are only useful for countries that export more than they import, such as China and India.

 

You're missing the point that if our exports fall then our GNP will fall, making us poorer as a nation. China keeps its currency weak so that it can export. You talk as if exporting things isn't a good thing. Trade isn't a one way street. The money that China makes on exporting goes on buying up resources round the world. China will be the strongest economy in the world in a few years thanks to a weak currency that facilitates exports, and to sound investment of the proceeds. It doesn't base its economic policy on the price of a pint in Tenerife.

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It will though make our exports more expensive and imports cheaper. So we'll suck in more imports and export less, causing a worsening balance of payments deficit. As at the moment interest rates can't be cut any more we can't do anything to reverse this.

 

Any raw materials we import to make stuff to manufacture and export will be cheaper though? Swings and roundabouts surely..

Edited by truman
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Until we can produce products from whittled chavs, or bottled selfloathing, we will need to buy the raw products from elsewhere to make the products we sell. This is where our strong currency helps our economy.

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Until we can produce products from whittled chavs, or bottled selfloathing, we will need to buy the raw products from elsewhere to make the products we sell. This is where our strong currency helps our economy.

 

I'm sure they already do that. It's called Eau de Sheffield Forum. :hihi:

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