Exchange Euros for pounds

kevinsheehanuk

For arguments sake lets say the pound continues to slide and reaches an exchange rate of 1 euro equals 1.25 pounds

Lets also say that at this point the Government decides to scrap the pound and go with the euro instead

Is it correct to assume that the conversion rate will be made at 1 euro equalling 1.25 pounds or will it be at 1 euro equals 1 pound

realaledrinker

Why would the rest of Europe want to admit a bankrupt currency?

The rate would be that agreed between the European Central Bank & the UK Treasury.

kevinsheehanuk

This idea came from another forum that suggested the Europeans would be interested in accepting the pound if it was valued at 1.20 pounds to the euro. This was considered parity.

In any negotiation would the UK government try to argue for a lower ( and therefore less costly) rate

Intriguing times we live in

newsaver2008

I can't understand this argument actually. Was the Greek Drachma ever very strong? Or various other countries that were able to adopt the Euro?