1€ = 97p and falling

[Purple Dalek]

1.00 Eur

=

0.970615 Gbp

[AtW]

Pound is going to drop below euro before or soon after the new Budget is announced in March/April 2009

[Purple Dalek]

That's quite optimistic, if it weren't for the government printing money then it'd have already gone south.

[AtW]

I am tempted to open euro/dollar accounts for the company now - the most annoying thing is that they seem to only be offered offshore which is probably not what HMRC like to see

[Gonzo]

If you were really sad like me, you would have read the whole of the Chancellor's pre-budget-report from last month and realised that the devaluation of the pound is a desired result.

[AtW]

the devaluation of the pound is a desired result.

I am not sure to be honest - this would imply they know what they are doing and I really doubt that.

[Solidec]

That's quite optimistic, if it weren't for the government printing money then it'd have already gone south.

huh? Quantitative Easing (what a ridiculous cop-out term for kick starting the printing presses) hasn't kicked in yet, money has been raised largely from gilts and bonds.

Once BoE starts printing money the pound will indeed go into freefall.

[AtW]

money has been raised largely from gilts and bonds.

I'd love to see up to date stats on those - who would want to buy assets that so quickly devalue? My guess is that they have issues with selling debt at the moment and will continue to have - quantitative easy seems the way to go, so market responds with pound falling even further, just wait till inflation kicks in and importers raise prices...

[Gonzo]

I am not sure to be honest - this would imply they know what they are doing and I really doubt that.

It never says that it is a deliberately planned result! But it does frequently refer to the devaluation of the pound that had already happened as one of the measures that will end the recession.

[AtW]

But it does frequently refer to the devaluation of the pound that had already happened as one of the measures that will end the recession.

I think pound got devalued more after pre-budget report - I am not sure they wanted this to happen as this is bound to push inflation next year, maybe that's exactly what they want to devalue all the debt? Playing with fire IMO - pound may never recover its position against euro, though this would make joining eurozone easier.