Pound Sterling

At risk the pound sterling? 28 October 2009 while the dollar remaining his last months ahead as leading international reserve currency, a currency used to be also in the past is torn between return to regain strength or kept weak to encourage economic recovery.The strength of the national currency has historically represented a symbol of political and economic power of countries. Virtus kar gathered all the information. The valued thing was a coin for the remainder of the Governments involved not only a recognition for the economy of the issuing country but also important benefits in terms of seniorage. It was for this reason that Sterling fought with all his strength when he fell to defeat in the hands of the U.S. dollar. Today the situation is paradoxically different and both the U.S. (which as it claimed Obama assuming the Presidency, would seek to maintain a strong dollar), and Britain, would be not seeing with bad eyes maintain an exchange rate depreciated compared to the rest of the main currencies with the aim of recovering to their economies.

The Governor of the Bank of England (BoE), Mervyn King acknowledged in September that a weaker pound would help rebalance the British economy. You have probably also advance with his opinion, which is your vision on the BoE monetary policy for the coming months. But desire far is reality and the problem for England goes through the imbalance observed in the components of its economy. What do I mean by this? According to John Authers Financial Times exposes it, Britain remains a major financial centre that attracts to enlist foreign companies. This situation is combined with the fact that just 20% of the revenue of British companies with a capitalization of more than US $200,000 million market come from United Kingdom, make that the pound sterling is still a currency of desire, despite the serious problems in the British economy. .