Hi all. Can anyone make an informed guess at what will happen to the exchange rate against some of the minor currencies If the value of the pound drops like a stone? To be specific, the philppine peso..currently 75ish to the quid.
Thanks.
Arthur
I only really follow it vs the $, but it's been quite robust these past few days, and I don't know why. Fred
The Philippine Peso generally follows the US$ more closely than any other major currency, so there would be even fewer Pesos to the Pound. I think all the recent talk about a collapse of Sterling was a UK domestic political issue only. I certainly hope so because I live in Manila and my expenses are all in Pesos while my income is in Sterling. A combination of lower interest rates and a lower Pound would hit me badly.
Chris
I'm pretty sure when I was in Jamaica 5 years ago I remember that the Jamaican $ was permanently tied to the US $?
In other words, irrespective of how well the Jamaican economy performed, if the US $ divebombed then their economy went the same way.
As a layman, I'm not sure how beneficial such a stratgey is?
If most of your overseas trade is with the US, then linking your currency to the US$ gives importers and exporters a better degree of stability as far as exchange rates are concerned.
Chris
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