[Martin-Subbynet]

Hi Guys,

How is everyone feeling about the ever reducing value of the pound vs. Euro/Dollar?

Its doesn't appear to good anymore coming from a a time when it was close to double the value vs the dollar not that long ago.

If you import it looks like things will be harder for you in coming months, and likewise those exporters should find life a little easier (relatively anyway)

What side of the fence do you lot sit?

[boxby]

Exchange rates are a two way thing. They reflect whats going on in the US as well as the UK. And the US are having an election. The US government would never take the country to a vote with a weak $ if they have any influence over it. They'll be throwing stuff at it left, right & centre to get it back up.

Not all exchange rate movements are as a result of domestic events.

[Martin-Subbynet]

Originally Posted by boxby

Exchange rates are a two way thing. They reflect whats going on in the US as well as the UK. And the US are having an election. The US government would never take the country to a vote with a weak $ if they have any influence over it. They'll be throwing stuff at it left, right & centre to get it back up.

Not all exchange rate movements are as a result of domestic events.

Yeah the US did throw everything at it, pushing large sums of money into the public arena by way of Loans to Banks - to further give loans out for things like Property (To bolster the Banking / Property sector) to the tune of around $50B (IIRC), and Tax "Rebates" to the tune of $146B to bolster up the retail sector - and onwards to the banking sector again. Plus they took drastic action on their inflation rate, something the BoE was too scared (or maybe too wise) to do, but its seems to be working.

Remember - this was the time when we (those idiots at the Gov/BoE) instead promised £100B ($200B at the time) in a failing bank who's mortgage books were falling in value daily, and must stand at least 10% down now if not more, as on average the cost of a home is down 10% - and we are yet to enter the actual recession.

At the moment its looking pretty rosy from the Dollar, because a falling £ will be worse for the Euro that it will the Dollar. (Hence its recent improved performance) So I wouldn't worry about the US, being the default currency for the international markets also has benefits.

Ultimately tho I was wondering how it will effect the people here... I'd think the Web Design guys should be happier, as our pound value at the moment will be barely any reason to hire an US designer... Or if you're importing from the States and things are already tough, then no doubt you're keeping a close eye on the figures, and hopefully those exporters who haven't had it so easy in the last 10 years should see them become more competitive.

Much as you said, these things are swings and roundabouts effected by the global economy and you'll have winners and losers.

[DavidT]

It hurts us quite a lot... put simply.

Most of our expenses are in Polish Zloty, then US Dollar and lastly in Pounds. In the 1 1/2 years we've operated from here the 5.5PLN - 1GBP has dropped to just under 4PLN - 1GBP... around 30% straight up - gone!

Add to that, the rise in wages here, probably around 40-50% in that same 1 1/2 years (for our industry anyway) and it does tighten things right up for us... still... we battle on doing the best we can.

[An Oasis]

Just glad that we did a big import of plants and planters earlier this year. Will not be importing anymore until the £ picks up.

[boxby]

I think that for the case of the Zloty, this will be a permanent and worsening situation. I can only see the long term being with the Zloty getty stronger until they're ready to join the Euro. In fact, must of the rise in prices, and the value of the Zloty has happened since the polish moved over to dual pricing.