What advantages are there for having the Strongest Currency ??

It makes things we import cheaper.

It encourages investors to put money into the UK.

EDIT: Hmmm, looks like we've got some forum problems again - still says 0 replies!!
 
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It's a bad thing for British manufacturers and suppliers as thier products and services become more expensive compared to countries with weaker currencies, so people wishing to purchase something from the UK may go elsewhere to get it cheaper.
 
Moredhel said:
The Cypriot Pound is stronger than Sterling. We get £1.10 GBP for every £1 CYP. :)

Alas I get paid in GBP. :(
The actual nominal exchange rate does not make a strong currency.

If the government suddenly created the new pound which was worth 10 old pounds we would end up with around 9 Cypriot pounds to the new pound but it wouldn't make a difference to which was the stronger currency.
 
yes but having a strong currency is really only symptomatic of having a strong economy which means that there is likely to be a level of inflationary forces internally - making products abroad seem cheaper if they do not have the same strength at that particular moment in time../.
 
johnnyfive said:
Must be worth something as they keep going on about how weak the U.S doller is getting. Wouldn't that make there exports cheaper then?
The US is a net importer of goods though so if their currency becomes weaker most things will actually become more expensive.

If investors see that the US economy is weakening they could pull even more money out of the US and invest it elsewhere, thus exacerbating the situation.

This might mean that they have to raise interest rates to temp investors back (more return on their money if higher interest rate) which could have dire consequences given how shaky the economy is at the moment over there.

Interesting read on currency strength and how this affected us 15 years ago.
http://en.wikipedia.org/wiki/Black_Wednesday
 
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hmm are you saying the pound is a stronger currency than the euro?

On what basis do you make that statement.

The dollar is weak against all currencies not just the pound. The dollar has went from 83c to the Euro to over 1.37 recently. Does that make the Euro a strong currency?

Sauce please?
 
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