Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jumperabv3
    • By jumperabv3 7th Oct 16, 4:04 AM
    • 786Posts
    • 164Thanks
    jumperabv3
    The value of the British Pound
    • #1
    • 7th Oct 16, 4:04 AM
    The value of the British Pound 7th Oct 16 at 4:04 AM
    This is just terrible, getting paid in pounds nowadays is not what it used to be 4 months ago.

    Why did you do it? Was it really worth it to vote for Brexit?

Page 2
    • takman
    • By takman 8th Oct 16, 11:42 PM
    • 1,541 Posts
    • 1,179 Thanks
    takman
    Exchange rate is no different to the period 2009-2011. No one made a fuss then. Just got on with it. Currencies have always fluctuated.
    Originally posted by Thrugelmir
    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.
    • Joe_Bloggs
    • By Joe_Bloggs 8th Oct 16, 11:55 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    If Thrugelmir is happy about the pound then we all should be happy. I could be wrong on this matter.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • jumperabv3
    • By jumperabv3 9th Oct 16, 12:28 AM
    • 786 Posts
    • 164 Thanks
    jumperabv3
    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.
    Originally posted by takman
    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.
    • PeacefulWaters
    • By PeacefulWaters 9th Oct 16, 6:47 AM
    • 5,072 Posts
    • 6,094 Thanks
    PeacefulWaters
    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.
    Originally posted by jumperabv3
    Why is it devastating to an exporter?
    • jumperabv3
    • By jumperabv3 9th Oct 16, 7:35 AM
    • 786 Posts
    • 164 Thanks
    jumperabv3
    Why is it devastating to an exporter?
    Originally posted by PeacefulWaters
    What does the UK export?
    That's the real question.
    • bigadaj
    • By bigadaj 9th Oct 16, 9:22 AM
    • 7,831 Posts
    • 4,776 Thanks
    bigadaj
    What does the UK export?
    That's the real question.
    Originally posted by jumperabv3
    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.
    • Thrugelmir
    • By Thrugelmir 9th Oct 16, 10:29 AM
    • 51,291 Posts
    • 43,093 Thanks
    Thrugelmir
    If Thrugelmir is happy about the pound then we all should be happy. I could be wrong on this matter.
    Originally posted by Joe_Bloggs
    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.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • Joe_Bloggs
    • By Joe_Bloggs 10th Oct 16, 9:21 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    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.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • Thrugelmir
    • By Thrugelmir 10th Oct 16, 9:47 PM
    • 51,291 Posts
    • 43,093 Thanks
    Thrugelmir
    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.
    Originally posted by Joe_Bloggs
    You haven't answered my question JB. The fundamentals are driving the GBP down. That's the problem. It's overvalued.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • PeacefulWaters
    • By PeacefulWaters 10th Oct 16, 11:58 PM
    • 5,072 Posts
    • 6,094 Thanks
    PeacefulWaters
    What does the UK export?
    That's the real question.
    Originally posted by jumperabv3
    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.
    • Heng Leng
    • By Heng Leng 11th Oct 16, 1:27 AM
    • 3,501 Posts
    • 1,047 Thanks
    Heng Leng
    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.


    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.
    Originally posted by PeacefulWaters
    • Heng Leng
    • By Heng Leng 11th Oct 16, 2:28 AM
    • 3,501 Posts
    • 1,047 Thanks
    Heng Leng
    I expect Scotland won't follow England and Wales into isolation.

    Only time will tell, I do hope so ... the last thing I want to see is an exodus of big businesses from London, or seeing London losing its status as a global city .... London is providing a lot of income for the UK and btw let's hope the UK remains UK (i.e. Scotland won't make a Scoxit) ....
    Originally posted by jumperabv3
    • eset12345
    • By eset12345 11th Oct 16, 3:07 AM
    • 287 Posts
    • 401 Thanks
    eset12345
    This is just terrible, getting paid in pounds nowadays is not what it used to be 4 months ago.

    Why did you do it? Was it really worth it to vote for Brexit?

    Originally posted by jumperabv3

    yes, your kids and grand-kids will thank you dearly when the failed EU project collapses in on itself.

    Just wait until we actually leave and the likes of Germany have to stump up our fees to subsidise the majority of EU countries.

    who cares if the pound is lower? when you go to the shop your pound is still buying you 4 pints of milk or 2 loafs of bread, your pound still buys you the same amount f fuel as a year ago etc etc
    • PeacefulWaters
    • By PeacefulWaters 11th Oct 16, 5:00 AM
    • 5,072 Posts
    • 6,094 Thanks
    PeacefulWaters
    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.
    Originally posted by Heng Leng
    I haven't offered a view on those things, so please don't call it simplistic.

    There is a fantastic opportunity for exporters and potential exporters to grasp.

    Higher interest rates, but under 5%, are a potentially good thing.

    Getting inflation towards it's 2% target range would also be a positive and remove the very real risk of deflation. Granted, significantly above that would be damaging.

    The idea that we should all be running around in a state of panic is ridiculous. The BREXIT vote may have changed the future, but it provides new opportunities that didn't previously exist.

    who cares if the pound is lower? when you go to the shop your pound is still buying you 4 pints of milk or 2 loafs of bread, your pound still buys you the same amount of fuel as a year ago etc etc
    Originally posted by eset12345
    With oil priced in dollars, and all other market factors being equal, it's inevitable that the price of fuel will (has) increase(d) to those paying in sterling.

    Over time, as the dust settles and decisions are made removing uncertainty, I'd expect sterling to recover. But that's a process of several years.
    Last edited by PeacefulWaters; 11-10-2016 at 5:06 AM.
    • Enterprise 1701C
    • By Enterprise 1701C 11th Oct 16, 7:42 AM
    • 16,527 Posts
    • 178,708 Thanks
    Enterprise 1701C
    At least it is a floating currency and we are not locked into the same rate as other countries, the Euro is insanity, it is totally wrecking many economies, even Germany is struggling.

    We are exporters

    Quite a few countries are watching and waiting, that is why the EU leaders are trying to wreck our Brexit. They want to make it as hard as possible. I suspect Mrs May will have something to day about that. Apparently Mrs May gets asked one question quite regularly when at the EU - what are you doing to avoid leaving the EU. The EU are still in denial and do not believe anyone can actually up and leave the EU. We are going before the rush, it is unsustainable in it's current form. They should have left it as the Common Market but Germany have always had ambitions to rule the world.


    I expect Scotland won't follow England and Wales into isolation.
    Originally posted by Heng Leng
    No, they wish to be subsumed into the EU and totally lose their identity. You do realise that the ultimate ambition of the EU is for it to become one country, and for all the countries within it to totally lose their borders and national identity don't you. Oh, and it will be ruled by Germany as the EU seems to be at the moment. Why else would they need a flag?

    We fought a war to avoid Germany's ambitions like that last time, this time they are trying to invade the world through the back door, and getting others to pay for it.
    Last edited by Enterprise 1701C; 11-10-2016 at 7:45 AM.
    What is this life if, full of care, we have no time to stand and stare
    • Joe_Bloggs
    • By Joe_Bloggs 12th Oct 16, 12:06 AM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    The UK entered the EU and then devolved. Had the UK devolved and the entered the EU it would have had a greater influence. To only have one vote means we can be cancelled out by Luxembourg in voting decisions.

    Our past unity has counted against us in representation at the highest levels in the EU commission.

    We could have all split into a regional group of four or even groups of 50,000 naming the group after a football team. Within the EU we could then get the same voting rights as other minor states.There would be over 1000 UK based states and other countries would seek similar treatment. It would be more democratic.

    How did the 'minor states' with so few voters gain so much power ?

    J_B.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • Heng Leng
    • By Heng Leng 12th Oct 16, 12:35 AM
    • 3,501 Posts
    • 1,047 Thanks
    Heng Leng
    You did offer an simplistic (and unqualified) view - you said it's a fantastic opportunity for exporters.

    Very few of the products that the UK exports will not have some inputs priced in another currency and stable (even if slightly higher) exchange rates are better for most businesses.

    I never suggested panic but current situation is far from ideal - particularly for long term planning and most importantly my holidays



    I haven't offered a view on those things, so please don't call it simplistic.

    There is a fantastic opportunity for exporters and potential exporters to grasp.

    Higher interest rates, but under 5%, are a potentially good thing.

    Getting inflation towards it's 2% target range would also be a positive and remove the very real risk of deflation. Granted, significantly above that would be damaging.

    The idea that we should all be running around in a state of panic is ridiculous. The BREXIT vote may have changed the future, but it provides new opportunities that didn't previously exist.

    With oil priced in dollars, and all other market factors being equal, it's inevitable that the price of fuel will (has) increase(d) to those paying in sterling.

    Over time, as the dust settles and decisions are made removing uncertainty, I'd expect sterling to recover. But that's a process of several years.
    Originally posted by PeacefulWaters
    • Heng Leng
    • By Heng Leng 12th Oct 16, 12:56 AM
    • 3,501 Posts
    • 1,047 Thanks
    Heng Leng
    You mean like having your almost two-thirds of your electorate voting for something and 'Germany' doing the complete opposite?

    'Germany' placing nuclear weapons next to your largest city that your don't want?

    Watching totally irrelevant news about 'Germany's' education, health, legal and political systems on a day to day basis.

    Having to watch reports about 'Germany's' football hooligans again...

    Is that the kind of stuff you are talking about?

    No, they wish to be subsumed into the EU and totally lose their identity. You do realise that the ultimate ambition of the EU is for it to become one country, and for all the countries within it to totally lose their borders and national identity don't you. Oh, and it will be ruled by Germany as the EU seems to be at the moment. Why else would they need a flag?

    We fought a war to avoid Germany's ambitions like that last time, this time they are trying to invade the world through the back door, and getting others to pay for it.
    Originally posted by Enterprise 1701C
    Last edited by Heng Leng; 12-10-2016 at 12:59 AM.
    • evangelos
    • By evangelos 12th Oct 16, 3:31 AM
    • 13 Posts
    • 5 Thanks
    evangelos
    Classic island mentality. Emotional/Delusional mambo jumbo...

    1) Bad Germany rules EU (why is that? are they better than UK in ruling? more powerful? more cunning? Do they have an almighty army?????)
    2) Our island is the greatest, why should WE have equal voting rights as minor states. Luxemburg shouldn't rule the EU. (Answer: because its a pre-agreed Union, not a Conquest. Germany "suffers" the same "insult". It's also a guarantee that the national identity of a minor country won't be lost. The big fish won't eat the small fish)
    3) Germany rules with other peoples money, OUR money...(Greece bailout ~200billion euros at least so far. Who paid for that? Hint: not UK)
    4) Pound is crashing but our exports will sky rocket. (second page of comments and not one exportable product was named so far...In any case i had a look around in my house to see the products i use...korean phones, American computers, german washing machine, korean oven, chinese cheap electronics/batteries/small gadgets, German aquarium equipment, spanish/latin american fruits, italian spagheti, the wife has some italian/french perfumes...the only British goods i can identify are the meat, the milk and the potatoes in my kitchen, ah yes the chicken as well.
    5) WE will make our own laws, Not obey to laws written in Brussels. Yea well i would also like to be free to sleep with other women every now and then but i have to obey the laws i agreed with my wife. And yes my wife has a major vote in these law making
    6) outside the EU we will be able to use our cunning British diplomacy, move like a ninja between the big powers, play everyone against the other and come on top. We will survive and thrive against 1.5 billion chinese (superpower), 1.6 billion islamists (hardcore), 1.1 billion Indians (emerging), 300 million Europeans (economic superpower?), 300 million Russians (superpower) and 350 million Americans (superpower)...who said that Power lies in Unity?
    • Marchitiello
    • By Marchitiello 12th Oct 16, 10:46 AM
    • 142 Posts
    • 45 Thanks
    Marchitiello
    Classic island mentality. Emotional/Delusional mambo jumbo...

    1) Bad Germany rules EU (why is that? are they better than UK in ruling? more powerful? more cunning? Do they have an almighty army?????)
    2) Our island is the greatest, why should WE have equal voting rights as minor states. Luxemburg shouldn't rule the EU. (Answer: because its a pre-agreed Union, not a Conquest. Germany "suffers" the same "insult". It's also a guarantee that the national identity of a minor country won't be lost. The big fish won't eat the small fish)
    3) Germany rules with other peoples money, OUR money...(Greece bailout ~200billion euros at least so far. Who paid for that? Hint: not UK)
    4) Pound is crashing but our exports will sky rocket. (second page of comments and not one exportable product was named so far...In any case i had a look around in my house to see the products i use...korean phones, American computers, german washing machine, korean oven, chinese cheap electronics/batteries/small gadgets, German aquarium equipment, spanish/latin american fruits, italian spagheti, the wife has some italian/french perfumes...the only British goods i can identify are the meat, the milk and the potatoes in my kitchen, ah yes the chicken as well.
    5) WE will make our own laws, Not obey to laws written in Brussels. Yea well i would also like to be free to sleep with other women every now and then but i have to obey the laws i agreed with my wife. And yes my wife has a major vote in these law making
    6) outside the EU we will be able to use our cunning British diplomacy, move like a ninja between the big powers, play everyone against the other and come on top. We will survive and thrive against 1.5 billion chinese (superpower), 1.6 billion islamists (hardcore), 1.1 billion Indians (emerging), 300 million Europeans (economic superpower?), 300 million Russians (superpower) and 350 million Americans (superpower)...who said that Power lies in Unity?
    Originally posted by evangelos
    Could not have said it better....
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,737Posts Today

7,894Users online

Martin's Twitter