Why is the low value of the � good for us ?

[sarah_louise]

If the � is worth 1 euro and perhaps $1 very soon how is this good for us in the UK when we manufacture and export hardly anything now and import almost everything we need/
We should be worried surely ?

[factor-fiction]

Because it will give us a chance of exporting more and maybe we'll import less, which would be mean more sales for what's left of our industries (manufacturing, agriculture etc) and services. It should also attract foreign holiday makers to come here from US etc and spend money in hotels and shops here

[sarah_louise]

But at the moment I am using a Dell laptop assembled in Ireland, watching a Panasonic TV drinking a glassof imported red wine with my German CH Boiler going and burning French Gas with my car spares for servicing being Toyota my petrol priced for retail in dollars and hoping to go somewhere really warm for a holiday. Everything will be more expensive due to the exchange rate plummeting.

[factor-fiction]

Exactly. It's your choice of course but things may improve for the economy if there is a shift towards spending money in a way which contributes more directly to the UK economy

[sarah_louise]

I have tried to buy British but of course it is impossible or much more expensive,.
I cant think of anything that would help our economy now and all the spend spend spend advice we are getting just sucks in imports.
Perhaps if we had joined the Euro when we were in the so called boom times it would have been better.

[buildersmate]

But that's the whole point. Imported stuff becomes more expensive so you will have a greater personal incentive to buy a British-made product, if the product is available. You still have freedom of choice.
Reverse is true abroad - Johnny Foreigner will find British goods cheaper compared to what he is used to paying. He is incentivised to consider buying more of our stuff.

[sqad617]

Sarah_louise's question is "
"If the � is worth 1 euro and perhaps $1 very soon how is this good for us in the UK "

By "us" she means presumably "the man in the street" and the short answe is...it isn't good for us.

Who is likely to invest their money in the UK pound, which "jonny foreigner" doesn't rate?

I like sarah_louise's answers as they are spot on....troubled times ahead.

[R1Geezer]

It doesn't matter whether the pound is strong or weak there are always going to be winners and losers.

You'd be surprised how much exporting is done sarah and to johnny foriegner those good will start to look cheaper. Did you know for example one of our exports is sand? and guess where it goes? Yep to the Arabs! Check it out. As mentioned above, British goods will start to look cheaper at home too and hey we might even start to improve the quality of stuff. You may even see new businesses start up to fill the gap.

All I'm saying is currency movements are always good and bad in equal measure.