The value of the British Pound
Comments
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If Thrugelmir is happy about the pound then we all should be happy. I could be wrong on this matter.0
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That's not true the pound was at its lowest value in the last 31 years.
You need to compare the pound against the USD to see how bad it is. Comparing it to the Euro won't show much because the Euro has also dropped in value due to the Brexit vote.
The reason for the Euro crash are definitely not Brexit.
In fact the Brexit vote almost had no impact on the EUR/USD.
The EUR is down because the ECB prints a lot of it, the unemployment in some EU countries is high above the sky and because politically, emotionally and personally many people start to feel like the EU must collapse and Germany needs to go back to its Deutschmark Mark, France to its Franc etc. - it's inevitable ... but the leaders wouldn't do that because they prefer to keep letting the poor middle class crash under their current incompetent leadership.0 -
jumperabv3 wrote: »I can't imagine the pound at 1.10 levels against the dollar (or parity with the Euro) but it's definitely possible and that's devastating.
Why is it devastating to an exporter?0 -
PeacefulWaters wrote: »Why is it devastating to an exporter?
What does the UK export?
That's the real question.0 -
jumperabv3 wrote: »What does the UK export?
That's the real question.
Many things, not so much relatively speaking in the older manufactured sector but trade is a huge part of any major economy.
A variation in exchange rates has pros and cons, since the gfc all major economies have been looking to devalue their currency to maintain a competitive advantage, the drop in the pound is more dramatic than ideal in that regard but has positives as well as negatives.
In terms of exporting then the uk becomes a far more attractive place with a lower pound, exporting should increase as things can be exported more cheaply, thought his obviously depends on what tariffs are imposed by trade partners.
That was one of the more unattractive aspects of the Brexit debate was the negativity of the remain camp and the arrogant threats from the eu itself. If the eu is so great why do people have to submit to its generic view and why threaten a trade battle when a larger member looks to secede, it's MAD politics.0 -
Joe_Bloggs wrote: »If Thrugelmir is happy about the pound then we all should be happy. I could be wrong on this matter.
Would you prefer interest rates rise to provide support?
Any suggestions for improving balance of trade or reducing budget deficit?
etc etc etc
Resolving the UK's problems was never going to be painless. Make the most of opportunities as they arise.0 -
Thrugelmir wrote:-
Any suggestions for improving balance of trade or reducing budget deficit?
I think we may have shafted ourselves into a catch 22 position on future trade negotiations with the brexit vote. It only takes a sneer from an EU leader to send the pound spiraling down. If foreign competitor governments can manipulate your currency like a yo-yo then there is scope for improvement in the future.
The UK has kowtowed to approve nuclear power contracts to foreign corporations and signing up to silly future generation rates on sites that could have provided tidal power . This will hit the UK balance of payments but the culprits will be long gone before the facts are investigated.
J_B.0 -
Joe_Bloggs wrote: »Thrugelmir wrote:-
Any suggestions for improving balance of trade or reducing budget deficit?
I think we may have shafted ourselves into a catch 22 position on future trade negotiations with the brexit vote. It only takes a sneer from an EU leader to send the pound spiraling down. If foreign competitor governments can manipulate your currency like a yo-yo then there is scope for improvement in the future.
The UK has kowtowed to approve nuclear power contracts to foreign corporations and signing up to silly future generation rates on sites that could have provided tidal power . This will hit the UK balance of payments but the culprits will be long gone before the facts are investigated.
J_B.
You haven't answered my question JB. The fundamentals are driving the GBP down. That's the problem. It's overvalued.0 -
jumperabv3 wrote: »What does the UK export?
That's the real question.
No it isn't.
I asked a real question and you can't be bothered answering it because it goes against your agenda.
A weaker currency presents many challenges, but there are opportunities there for companies that export.0 -
Your view is far too simplistic.
Many inputs into the British economy are imported (priced in Dollars or Euros).
The low exchange rate will simply cause inflation long term and therefore rising interest rates.PeacefulWaters wrote: »No it isn't.
I asked a real question and you can't be bothered answering it because it goes against your agenda.
A weaker currency presents many challenges, but there are opportunities there for companies that export.0
This discussion has been closed.
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