Foreigners control Britain's currency after Brexit

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    (Original post by #ChaosKass)
    I thought you remainers would see this as a good thing, seeing that you're massive fans of foreigners yourselves.
    Everyone in Britain is a foreigner to me.
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    (Original post by Maker)
    Its obvious Britain has lost control of the pound, if it had any control, why would it be devalued by 6% in less than a day and continue to fall? Fluctuations are up and down, the pound is just down.
    You didnt answer my questions.
    Do you understand the way currency valuations work?

    Markets dislike uncertainty, so people go for more stable currencies. The Uk will have to make hay and ramp up its exports whilst it can.

    Its falling at the moment because fewer people want it at the current terms. Iys only been 5 months. You need to look at long term trends over more substantial periods. The £ has suffered such falls before, when we were in the EU.

    It wasnt that far off when we hit the recession

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    Did they not control it before? look at black Wednesday foreigners devalued the pound and profited from it.
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    (Original post by 999tigger)
    You didnt answer my questions.
    Do you understand the way currency valuations work?

    Markets dislike uncertainty, so people go for more stable currencies. The Uk will have to make hay and ramp up its exports whilst it can.

    Its falling at the moment because fewer people want it at the current terms. Iys only been 5 months. You need to look at long term trends over more substantial periods. The £ has suffered such falls before, when we were in the EU.

    It wasnt that far off when we hit the recession

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    I don't think I want a recession but you never know these days.
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    (Original post by Maker)
    I don't think I want a recession but you never know these days.
    The point is (as you dont seem to realise) that froeigners influence over the exchange rate is the same now as it was before brexit. It may or may not be a bad decision, but what markets do not like is uncertainty, so people who invest in currencies and countries prefer more stable economies and currencies. They will come nack when whats on offer presents a better deal to them.
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    (Original post by 999tigger)
    The point is (as you dont seem to realise) that froeigners influence over the exchange rate is the same now as it was before brexit. It may or may not be a bad decision, but what markets do not like is uncertainty, so people who invest in currencies and countries prefer more stable economies and currencies. They will come nack when whats on offer presents a better deal to them.
    That is obviously not true. British people has created a situation of uncertainty and the BoE would usually control the exchange rates by changing interest rates but these are no longer enough so Britain has less control now than before Brexit.
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    (Original post by Maker)
    That is obviously not true. British people has created a situation of uncertainty and the BoE would usually control the exchange rates by changing interest rates but these are no longer enough so Britain has less control now than before Brexit.
    The exhcange rate is a simple balance of supply and demand. the same as it was before brexit. Foreigners had an equal chance of whether they wanted the currency before the referendum as after.

    The BOE can influence exchange rates in part by changing interest rates, which it has not chosen to do. People prefer not to hold piynds due to uncertainty so they leave the £ and move into other currencies or commodities.

    Foreigners have no more control to influence the exchange rate now than before the referendum. The fact they choose to exercise that ability is a different matter.
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    Welcome to the FOREX markets. Enjoy your stay.
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    Mark Carney has more control over Britain's currency than anybody and he's Canadian.

    /thread.
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    (Original post by Maker)
    So the greater control resulted in everyone in Britain except foreigners with foreign money paying more for everything, I think I prefer lesser control instead.
    So you wouldn't mind a totalitarian dictatorship as long as the pound was a bit stronger?
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    (Original post by usainlightning)
    So you wouldn't mind a totalitarian dictatorship as long as the pound was a bit stronger?

    Reductio ad absurdum
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    (Original post by usainlightning)
    In fact we now have more control over our currency than we did before Brexit, as we now have more control over the direction of our economy. The pound is just a reflection of the perceived strength of our economy by foreign and domestic investors. Who do you think set the rate before the 23rd of June?
    It sounds like you're the smartest one here so let me pick your brains on something (assuming you still have some left).

    So if Brexit happens how do you suggest the country should go about retaining the foreign investors' trust. I'm talking about FDIs here which are directly linked to the value of GBP against the currency of origin that the investment is coming from.
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    and guess who will be the first people to be complaining - thats right - the people who voted FOR brexit! :laugh:

    I can't bloody wait! even though we'll also be suffering too at least we'll be able to gleefully say I tooooold you sooooo
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    (Original post by Edo123)
    It sounds like you're the smartest one here so let me pick your brains on something (assuming you still have some left).

    So if Brexit happens how do you suggest the country should go about retaining the foreign investors' trust. I'm talking about FDIs here which are directly linked to the value of GBP against the currency of origin that the investment is coming from.
    I would like to see the opinion of MagicNMedicine (who commented on this page), however FDIs see us as a gateway to the European market so it's important our trading links with Europe remain strong. I am sceptical as to how important it is to remain a member of the single market (which i very much doubt is on the agenda due to the concerns over immigration) which has always been a misnomer as countries tend to bend the rules in their favour, so a comprehensive free trade deal with Europe should suffice.
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    (Original post by usainlightning)
    I would like to see the opinion of MagicNMedicine (who commented on this page), however FDIs see us as a gateway to the European market so it's important our trading links with Europe remain strong. I am sceptical as to how important it is to remain a member of the single market (which i very much doubt is on the agenda due to the concerns over immigration) which has always been a misnomer as countries tend to bend the rules in their favour, so a comprehensive free trade deal with Europe should suffice.
    So perhaps you're certain that the EU would be interested in doing a free trade deal with the UK even post Brexit.
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    I should hope so
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    (Original post by Maker)
    Foreigners now have more control over Britain's currency than the British because of Brexit.

    We now have to pay more for petrol and energy and soon, prices will rise for food, electronics, cars, clothes and anything that is imported. Even prices for food grown in Britain will rise because increases in prices for fuel, fertilisers and processing.
    Tfw everyone seems to think that the falling pound means the end of days......

    The pound has been massively overvalued for years now, to the point where it's had a significantly detrimental effect on our businesses' ability to trade abroad. Conservative estimates suggested the pound was trading 15% above its true value immediately prior to brexit, with a more likely figure somewhere between 20 and 25%. It's certainly telling that Mervyn King's response to the 'danger' of high interest rates, falling house prices and falling exchange rates was to say 'that's what we've been trying to achieve for the past three years'.

    Please don't mindlessly swallow the rhetoric being put forwards that the falling pound means we're all going to be bankrupt. It's simply untrue.
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    (Original post by Luke Kostanjsek)
    Tfw everyone seems to think that the falling pound means the end of days......

    The pound has been massively overvalued for years now, to the point where it's had a significantly detrimental effect on our businesses' ability to trade abroad. Conservative estimates suggested the pound was trading 15% above its true value immediately prior to brexit, with a more likely figure somewhere between 20 and 25%. It's certainly telling that Mervyn King's response to the 'danger' of high interest rates, falling house prices and falling exchange rates was to say 'that's what we've been trying to achieve for the past three years'.

    Please don't mindlessly swallow the rhetoric being put forwards that the falling pound means we're all going to be bankrupt. It's simply untrue.
    you are right, when the pound reaches zero, we will have achieved the aim of Brexit.
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    (Original post by Maker)
    you are right, when the pound reaches zero, we will have achieved the aim of Brexit.
    Ah yes, what an insightful response. Obviously, the pound will keep falling until it's worth nothing and eventually, it'll assume negative value........

    I dare say it should be obvious that the fall will bottom out, and likely the pound will recoup at least some of the lost ground. But if sterling ends up dropping 15% or so in value, as is being tentatively estimated as the likely end result, it could really be quite a good thing for the British economy as a whole.
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    It doesn't matter. I'm not really affected by the increase in the price of imports, the working class are. And it is the working class voted for Brexit. So poor them.
 
 
 
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