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because half the world trades in USD.
and a lot of our raw materials are imported
and a lot of our raw materials are imported
£18,000,000 a day almost and dome idiots in here thinks that's ok !!!
- Thread starter gasbanni
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That still does not explain why strong or weak pound it's always bad for Britain.
If paid in dollars then strong pound should be better - unlike now.
I realise this makes our exports dearer but as we have a deficit in trade then this surely would be the preference.
If paid in dollars then strong pound should be better - unlike now.
I realise this makes our exports dearer but as we have a deficit in trade then this surely would be the preference.
If you have an unstable currency it is bad for trade because:
People you are trading with will insist on dealing in a stable currency (not yours) such as the dollar or Euro. This gives you the extra cost and inconvenience of currency transactions, and the risk that you will, for example, buy your parts and materials on a Monday when the pound is low (meaning they cost you more pounds) and sell them on a Friday when the pound is high (meaning you earn fewer pounds). You will have to build a buffer into your buying and selling prices, or risk erosion of your profits.
You can try to buy protection against your unstable currency with forward contracts. This means you are paying somebody to take on the risk. They will make a charge which they can profit from, so you have an additional cost.
If you are not a trader, but a retired plumber hoping to buy a villa in Spain, you will need 15% more pounds now than you needed a year ago.
If you are living in Russia or Britain, and your currency is in a long decline, then your imported food will keep going up in price, exposing you to inflation.
People you are trading with will insist on dealing in a stable currency (not yours) such as the dollar or Euro. This gives you the extra cost and inconvenience of currency transactions, and the risk that you will, for example, buy your parts and materials on a Monday when the pound is low (meaning they cost you more pounds) and sell them on a Friday when the pound is high (meaning you earn fewer pounds). You will have to build a buffer into your buying and selling prices, or risk erosion of your profits.
You can try to buy protection against your unstable currency with forward contracts. This means you are paying somebody to take on the risk. They will make a charge which they can profit from, so you have an additional cost.
If you are not a trader, but a retired plumber hoping to buy a villa in Spain, you will need 15% more pounds now than you needed a year ago.
If you are living in Russia or Britain, and your currency is in a long decline, then your imported food will keep going up in price, exposing you to inflation.
Buy from from China they want dollars. Buy from Europe they want euros. Never been asked to pay in £s.
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Ever bought anything in Britain?
Course not.
Only stuff actually made here and where none of the raw materials is imported.
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good luck hunting that unicorn.
...and does not use oil and gas products, for example in the factory or to fuel and build the delivery lorries; and does not use any commodities which have a world price quoted in dollars, for example metals, rubber, grains, cocoa, coffee, oats and sugar.
And cannot be sold on the export market.
So that rules out, ummmm, pretty well everything except hand-whittled clothes pegs sold by a pedlar, and personal services such as chiropodists.
And cannot be sold on the export market.
So that rules out, ummmm, pretty well everything except hand-whittled clothes pegs sold by a pedlar, and personal services such as chiropodists.
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it doesn't matter what it's made of. if you want to buy british you buy products where most of the value chain is in Britain.
Mushrooms.
Aren't most of them from Ireland?
I meant local wild ones. Wouldn't want any from Europe.
I heard on the radio a few days that they were all being nicked by...............eastern europeans
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