Is the UK government doing anything to try and stop the decline of the £? Coming into autumn and tourists are starting to decline?

Thistleblower 08/26/2017. 22 answers
News & Events Current Events

22 Answers

Francis 08/25/2017.

Its ironic that we stayed out of the euro and now the pound will soon be the same as a euro.

TSK 08/25/2017.

Feck all..They are Tories....

Forty Licks 08/25/2017.

This is a managed stage by the government. They are deliberately keeping the £ down to export more just to remind them how good our products are and hopefully the world will see it too. Don't think May & Co are that bothered about the week tourist £ and tourist DO decline in the Autumn and Winter months. Watch for the interest rate to go up within 2 months with the £ racing onwards giving us more buying power and attract inflation.

Anonymous 08/25/2017.

Buy gold with your savings now before Brexit.

Nathan 08/25/2017.

Every time I move money from Australia

where we (family) have property rented out

since the hideous brexit mess I GAIN ON IT

I don't always check but last week I did and

already this year since February I have £1,550

for absolutely NOTHING just by communicating

with my sister (free on Skype) to hold back on a

transfer and overall since last year the $AUD is

up from 0.532 pence per Australian dollar to 0.616

and hasn't fallen below 0.585 since the farcical vote

Leaving the EU


MISTAKE the last and most arrogant THICK people

on earth to be able to face up to it and to admit it and

the whole "immigration" obsession is also a load of crap

fallacy typical Cameron you are SO EASILY CONNED !!

And now you have gone from just 2 years in 7 years with a full

conservative government BACKWARDS to a £1 billion coalition

FIVE YEARS Lib Dem / Tories under 2 years Tory now Tory DUP

A WEAKER government after 7 years instead of a stronger one

I am laughing in fact I am having to up my fitness disciplines as

the money is too easy retired not quite 60 yet and getting bit lazy

That's the weather time for a trip to the sunshine few hours away

NO worries !

YOU are working for losses instead of gains you're working to exist

NOT to live and you're land locking yourselves isolating yourselves

Maxi 08/25/2017.

A declining £ encourages more to visit and a declining £ can offer as many benefits and it offers negatives, official figures show that is exactly what is happening more tourists have arrived, what you are saying is not supported by the facts......

The Death Bunny 08/25/2017.

a declining pound draws tourists. It means they pay less

2 years ago, I needed to pay ~$158 to get £100

now I pay $128 to get £100

I save $30, which pays for 2 cups of coffee in central London

[edit] From the FT - sterling, trade weighted, which is a more important factor than simple conversion rates.... at a record 168 year low

Mistress of Morality 08/25/2017.

British tourism my decline but since the pound is devalued it will attract foreign tourists and investors so it's not all bad.

Anonymous 08/25/2017.

I dont think so.

Land-shark 08/25/2017.

They dare not; nobody will buy from the UK unless at fire-sale prices. Nobody wants to invest long-term with the Brexit catastrophe ongoing either. Sadly you're going to be spending about 30% more than a couple of years ago on holiday and imported goods. Come 2020 when you're out of the EU those things will cost 50% more. You've gone and made it just like Yeltsin's Russia by voting for Brexit.

Tom 08/25/2017.

Why would tourist decline in a weaker pound? A weaker poind would boost tourist numbers significantly.

Also the government is trying but ultinately market confidence is the biggest factor at play here. Brexit has made everybody scared to invest.

Who 08/25/2017.

in 1981 (I think ) the UK was in the ERM (the exchange rate mechanism - the forerunner of the eurozone and the euro)

but it entered it with an overvalued £ (£ was about 2.4$ to the £)

result was the £ crashed in value (it lost about 25% in a couple of days - dropped to about 1.8$ to the £)

Norman Lamont ( the chancellor of the exchequer) did 2 things- he increased interest rates to15% and he pumped billions into propping up the £

Both things failed and the UK was forced out of the ERM

result was - the fiasco cost the uk billions and those billions made no difference, the £ stayed at its new lower value

(year later inflation went up to around 26%

Just keep an eye on the rate of inflation - it was very low last year but has now started creeping up

as it gets higher there only 2 possibilities

1) the bank of england increases interest rate to discourage consumer spending (and that will f//k up anybody with a loan) But since consumer spending is the thing thats kept the economy going AND increasing the rate also affects businesses - this is the last thing it wants to do.

2) the BoE will do nothing with interest rates in the near future (with probably a lot of pressure from the government to do nothing) until inflation gets to a level where they HAVE to do something

My betting is on 2)

(but remember - increasing interest rates also encourages more foreigners to put they money into UK banks to get the interest (this is not the way it actually works, but it gives you the idea) - and THAT leads to an increase in the value of the £

so yes the interest rate discourages people to buy stuff with borrowed money, but it DOES tend to make the stuff they do buy cheaper)

(oh and by the way - inflation leads to increased prices - so any benefit visitors get from a lower £ is gonna be lost cos things are gonna cost them more)

(if the conservatives EVER claim to be the party with financial ability just shove this under their nose)

Moral is-

the government (any government in the world) is powerless to control the value of its currency in the face of the markets

government is about politics and pleasing the voters, the markets are about money

(there is a second moral - the cons are liars - but I bet you already know that)

shiraz6537 08/25/2017.

UK is declining, so is your currency. whtas the problem?

martin 08/25/2017.

What you can do is put an end to Brexit and get back fully participating in the EU.

Guru Hank 08/25/2017.

One reason to leave the EU was to unshackle the pound from the Euro/Deutschemark. A lower pound will BENEFIT tourism in the UK. derp.

It may make it a little more expensive for Tony Blair to holiday in Tuscany, and upset Guardian readers with a second home in Provence, but that is another benefit.

Barbie says: 'economics is hard'.

Jimmy Bignuts 08/25/2017.

'There are more important things than money'

Nigel Farage

ketkonen 08/25/2017.

Well, a declining Pound is OK....up to a point. Beyond that it becomes dangerous....nobody wants a currecy that declines away to nothing....that way lies hyperinflation and financial ruin. If the Pound goes negative against the Euro, time to be concerned. Interest rates would have to be ratcheted up to reverse the decline, and then the fun starts. Personally I think the Pound is being hammered, and will continue to be hammered, to try and intimidate the British into giving up on Brexit. Many forces in this world are against this. UK is gonna have its nerve fully tested through 2017-19. It's gonna get rough out there.

Gerald 08/25/2017.

no its the cause of it London trade in Dollars they don't give a fu** and we the public have the pound shop happy days

Den 08/25/2017.

Announcing that the UK will stay in the Single Market after all, providing the certainty of trade with EU and Single Market members, would remove some of the uncertainty that is affecting the pound. Opinion polls and the vote against the Tories in the general election have shown that the British people don't want a hard Brexit.

Deighton CI5 08/25/2017.

yes, they are always doing their best to keep the £ over-valued. Foreign tourists can buy more pounds with their currency, then spend more.

RIP Heather Hayer 08/25/2017.

You are a "parliamentary democracy", which means that unless the House of Lords overrule it, your Members of the House of Commons are OBLIGED to govern as the majority wish.....and a (slim) majority of Britons WANTED Brexit, which is the root cause of the decline in the value of the Pound Sterling....mostly because it is quite the dumbest thing Britain has done in CENTURIES...

Multi-National corporations based in England who do business in the EU will now (actually ARE now) relocating to mainland Europe, losing you billions in revenues....

Anne Campbell 08/25/2017.

I would ask 'Is the UK government doing anything constructive? - Download Hi-Res Songs

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