The value of the British Pound

13468914

Comments

  • jumperabv3 wrote: »
    The GBP/USD was stable for years since 2008 .... moving mainly between the 1.5ish to the 1.6ish back and forth.

    Brexit --> 1.21

    $1.21 - do you realize how insane that is?

    I'll try again.

    Do you realise what new opportunities that opens up for exporters?
  • CLAPTON
    CLAPTON Posts: 41,865
    Combo Breaker First Post
    Forumite
    edited 13 October 2016 at 7:10AM
    how do you image the value of a currency is determined?

    the UK has had a current a/c trade deficit for many years : the shortfall has been funded by
    -selling off UK businesses and industries (have you really not noticed how most of the major businesses here are foreign owned?
    -borrowing on the foreign exchange markets

    clearly most people can be 'rich' by selling their assets off and borrowing

    most people with two brain cells realise there is a flaw in the plan and know the day of judgement will arrive.
    some may even say it is an insane model but that's a matter of judgement.

    but don't trust me
    you look up
    -the UK current a/c trade deficit
    - the difference between foreign assets owned by the UK and UK based assets owned by foreigners and how that has changed over recent years
    -the difference between foreign dividend coming into the UK and the level of UK dividends flowing out of the UK.

    then look up a standard economics book and see what they say about the likely movement in exchange rates in a situation like this.
  • lstar337
    lstar337 Posts: 3,440
    First Anniversary Name Dropper First Post Combo Breaker
    Forumite
    edited 13 October 2016 at 9:57AM
    bigadaj wrote: »
    If you are going on vacation then things will be more expensive, simplistically you'll have to work say 20% harder to buy the same holiday, if you can't afford that then you can't take the holiday.
    Or you can holiday in the UK and help boost our economy. I'm guessing UK holidays are looking pretty good to people in Europe and the US right now.
  • lstar337 wrote: »
    Or you can holiday in the UK and help boost our economy. I'm guessing UK holidays are looking pretty good to people in Europe and the US right now.
    And you don't think that UK holiday prices will rise when demand exceeds supply? Or UK hotel prices are already massively overpriced compared to elsewhere anyway?
  • colsten
    colsten Posts: 17,597
    First Anniversary Photogenic Name Dropper First Post
    Forumite

    Do you realise what new opportunities that opens up for exporters?
    The opportunities for experts are obvious.

    As are the price increases for importers and for those who want to spend time outside the country.
  • mgdavid
    mgdavid Posts: 6,705
    First Anniversary Name Dropper First Post
    Forumite
    colsten wrote: »
    The opportunities for experts are obvious.

    As are the price increases for importers and for those who want to spend time outside the country.

    some you win, some you lose.
    It might make people value what they have, and give more thought to their spending plans (do I need it or do I want it?) - both good IMO.
    The questions that get the best answers are the questions that give most detail....
  • jumperabv3
    jumperabv3 Posts: 1,231
    First Anniversary First Post
    Forumite
    lstar337 wrote: »
    Or you can holiday in the UK and help boost our economy. I'm guessing UK holidays are looking pretty good to people in Europe and the US right now.

    Oh yes, try to travel the UK with your car and pay expensive price for petrol ... hint: the UK imports petrol from other countries and paying for it with a GBP currency ... so it just got more expensive by 20% too.
  • jumperabv3
    jumperabv3 Posts: 1,231
    First Anniversary First Post
    Forumite
    Here are a few more sane people at the Independent screaming out loud what I was trying to imply:

    http://www.independent.co.uk/news/business/news/pound-value-euro-currency-exchange-airports-breyxit-a7355296.html

    And don't get me wrong, using the airport is for suckers when you can use a card like Halifax Clarity or Creation instead and others instead - but the article does emphasize how serious the situation is.
  • CLAPTON
    CLAPTON Posts: 41,865
    Combo Breaker First Post
    Forumite
    jumperabv3 wrote: »
    Here are a few more sane people at the Independent screaming out loud what I was trying to imply:

    http://www.independent.co.uk/news/business/news/pound-value-euro-currency-exchange-airports-breyxit-a7355296.html

    And don't get me wrong, using the airport is for suckers when you can use a card like Halifax Clarity or Creation instead and others instead - but the article does emphasize how serious the situation is.

    so we are expecting about 3% inflation fairly soon
    just 1% higher than the BoE target of 2% and fairly low by historic standards
    but it does make us poorer but then living of borrowing and selling our best assets was never a sensible way of living above our means
  • colsten wrote: »
    The opportunities for experts are obvious.

    As are the price increases for importers and for those who want to spend time outside the country.
    My point being the OP has been conveniently one sided in his cries of panic.

    Yet has been reluctant to acknowledge any upsides.

    I type from Portugal, where my £ isn't stretching as far as it once did.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards