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04 April 2005

Engish Pounds

English pounds have been strong against dollors for quite a couple of years so far.

Strong GBP will make the importers happy since they spend less in buying commodities abroad and sell the same price to domestic customers.

For the same reason, the exporters will be sad since less people will come to buy their goods due to the high exchange rate. Their abroad customers will spend more on the British made goods. They then tend to go their alternative choices instead, like French goods or Germany ones.

But US dollors seem to be becoming bit stronger recently, one of the reason would be the increases of american interest rate, again and again.

But, as English salary maker, we would like to see the pounds to be strong which made it much cheaper for us to travel abroad or buying foreign goods.

But, for a scenario, what is the effect to Britain if (only if) the 1£=1$?? do you have any opinions, please?

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