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Foreigners control Britain's currency after Brexit Watch

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    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.
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    Yep.
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    new brexiter's counter argument "If you dont like brexit leave the country!!"

    smh.
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    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?
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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?
    If Britain controlled the pound, why is the pound falling off a cliff after Brexit?
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    Financial market prices are heavily influenced by sentiment. Uncertainty has a negative effect on that and currencies, equities and bond prices can be marked down below their underlying value. Brexit negotiations are a classic example and the £ is well down. Once things are clear(er) and settle down it'll find its true level again. It'll be higher than it is atm.

    Despite what I said above about equity prices they are currently up. That is because the fall in sterling increases the value of the international element of many UK listed companies. And exports are currently cheaper for overseas buyers so increased sales will factored in to NAVs.

    I think you are being a bit overly pessimistic and overplaying the influence of foreigners.
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    (Original post by viffer)
    Financial market prices are heavily influenced by sentiment. Uncertainty has a negative effect on that and currencies, equities and bond prices can be marked down below their underlying value. Brexit negotiations are a classic example and the £ is well down. Once things are clear(er) and settle down it'll find its true level again. It'll be higher than it is atm.

    Despite what I said above about equity prices they are currently up. That is because the fall in sterling increases the value of the international element of many UK listed companies. And exports are currently cheaper for overseas buyers so increased sales will factored in to NAVs.

    I think you are being a bit overly pessimistic and overplaying the influence of foreigners.
    Foreigners are seeing the government far keener to limit immigration at the expense of the economy. Everyone can see businesses will suffer out of the single market and is pricing the pound at a much lower level as a result.

    Unless the government piorities business above controlling immigration, the pound will sink even lower.
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    The fall in sterling will produce an inflationary effect however it is my belief that this is a short to medium term consequence and that post-exit we will see Sterling gain strength.
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    (Original post by Maker)
    If Britain controlled the pound, why is the pound falling off a cliff after Brexit?
    I didn't say Britain controlled the pound, i'm saying we now have a a greater control than we did before, or we will do when brexit is finalised.*
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    Financial Markets hate uncertainty above anything else, so they're trying to price the £ based on where they think it should be following the as yet not-even-started Brexit negotiations! We will have volatility for some time to come, but the market will eventually find the price and it's certainly not going to be at parity. It's going to probably be lower than the pre-Brexit level but (a) it was overvalued, (b) a moderate devaluation will not be calamitous, in fact it will probably give the economy a slight boost and (c) in the near to zero interest rate environment we find ourselves in and probably will for some time to come, any inflationary pressures can be dealt with relatively easily. We were, after all, worried about deflation until relatively recently!
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    (Original post by usainlightning)
    I didn't say Britain controlled the pound, i'm saying we now have a a greater control than we did before, or we will do when brexit is finalised.*
    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.
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    (Original post by Rakas21)
    The fall in sterling will produce an inflationary effect however it is my belief that this is a short to medium term consequence and that post-exit we will see Sterling gain strength.
    Is your optimism seems too optimistic.
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    (Original post by Maker)
    Is your optimism seems too optimistic.
    I voted Brexit largely on the basis that i saw little evidence to suggest that long term growth would be significantly different whether in or out. I have seen nothing to change that opinion.
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    (Original post by Rakas21)
    I voted Brexit largely on the basis that i saw little evidence to suggest that long term growth would be significantly different whether in or out. I have seen nothing to change that opinion.
    Did you see little evidence because you avoided the evidence of which there was plenty of?
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    (Original post by Maker)
    Did you see little evidence because you avoided the evidence of which there was plenty of?
    Not at all.

    Unlike most people i actually read large parts of various documents and assessments. The treasury's worst case scenario for example forecast recession across 2017 and 2018 but suggested that growth through the 2019-2030 period would be about 0.3% lower each year.

    Did you actually read anything not in the media?
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    (Original post by Rakas21)
    Not at all.

    Unlike most people i actually read large parts of various documents and assessments. The treasury's worst case scenario for example forecast recession across 2017 and 2018 but suggested that growth through the 2019-2030 period would be about 0.3% lower each year.

    Did you actually read anything not in the media?
    No I make sensible decisions
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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.
    Why is this control any greater post brexit than it was before?

    To a large extent the market controls currency rates. We have had curreny crisis and fluctuations before.
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    (Original post by Maker)
    No I make sensible decisions
    It's interesting you avoided his question, did you read the reports or just what the media told you?
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    (Original post by 999tigger)
    Why is this control any greater post brexit than it was before?

    To a large extent the market controls currency rates. We have had curreny crisis and fluctuations before.
    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.
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    I thought you remainers would see this as a good thing, seeing that you're massive fans of foreigners yourselves.
 
 
 
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