Coronavirus: British Pound plunges to its lowest level in over 30 years

[metisdead]

Some more off topic posts and replies have been removed.  Another reminder, this topic is about the following:

 

Coronavirus: British Pound plunges to its lowest level in over 30 years

 

LONDON (Reuters) - The British pound plunged on Wednesday to its lowest level against the dollar since 1985 and to a more than decade-low versus the euro as coronavirus fears and a global rush to hold dollars overshadowed stimulus efforts.

 

This topic is not about the British Pound plunging due to Brexit. 

[nauseus]

On 3/19/2020 at 3:07 PM, Logosone said:

Yes, the Pound is currently the weakest currency in the world.

 

MASSIVE DEBT of the UK is a major problem:

 

"While G10 countries [the countries that use the 10 most actively-traded currencies around the world] have varying debt levels, with rates this low most have enough fiscal room to act. The issue may be external deficits - and we've highlighted the UK before as being a case where the large private sector deficit and current account deficit puts the pound more at risk than other currencies."

 

The brilliant Brexiter's budget has contributed to this:

 

The UK government's response to the coronavirus crisis, in particular the £330bn fiscal stimulus programme announced on Tuesday by Chancellor Rishi Sunak, will lead to a huge increase in UK government borrowing. More UK government borrowing means more issuance of UK government IOUs, or gilts, meaning a fresh wave of sterling-denominated assets hitting the market. Under those circumstances, all other things being equal, one would expect the pound to fall.

 

The poor performance of the UK economy also coming home to roost:

 

"The UK's persistent current account deficit, the difference in value between the goods and services Britain exports and the goods and services Britain imports, means a constant need for foreign investment - what Mark Carney, the former Bank of England Governor, famously described as "the kindness of strangers".

 

Apart from debt the Brexit lunacy itself is causing issues:

 

Added to this, in some quarters, is a suggestion that the chances of the UK achieving a trade deal with the EU, before its post-Brexit transition period at the end of the year expires, are receding as governments everywhere are pre-occupied with the coronavirus outbreak. In other words, the chances of a so-called 'cliff edge' Brexit are increasing, which is perceived by investors as bad for the pound.

 

https://news.sky.com/story/coronavirus-why-the-pound-is-taking-a-pummelling-as-crisis-deepens-11959828

 

[nauseus]

On 3/19/2020 at 6:30 PM, pacovl46 said:

Right, my bad, but they’re almost equal. Not a good sign. 
 

1 Pounds as of today is 37.70 Baht. So, in a nutshell it lost almost  half its value in comparison to the Baht since 2003. 
 

 

First you quote the euro and now the baht. Drivel on man.

[Chomper Higgot]

4 minutes ago, nauseus said:

First you quote the euro and now the baht. Drivel on man.

Perhaps he’s more concerned about the B£/Bht exchange rate.

 

Regardless, the pound has dropped to a level that will be creating difficulties for many of our fellow expats.

[URMySunshine]

We have no exit strategy for the virus it's either kill the old folk or kill the economy. Once you have a lockdown then you suppress it temporarily but once you unlock then it jumps back. The 'cure' may end up being worse than the disease. One ICU in London is already at capacity and this has only just begun. 

Edited March 20, 2020 by URMySunshine

[nauseus]

1 minute ago, Chomper Higgot said:

Perhaps he’s more concerned about the B£/Bht exchange rate.

 

Regardless, the pound has dropped to a level that will be creating difficulties for many of our fellow expats.

On the way up again already. Damn, I missed it again!

[vogie]

4 minutes ago, URMySunshine said:

We have no exit strategy for the virus it's either kill the old folk or kill the economy. Once you have a lockdown then you suppress it temporarily but once you unlock then it jumps back. The 'cure' may end up being worse than the disease. 

Maybe us old uns should not be so selfish and sacrifice ourselves for the greater good of mankind, you first.????

Edited March 20, 2020 by vogie

[URMySunshine]

22 minutes ago, vogie said:

Maybe us old uns should not be so selfish and sacrifice ourselves for the greater good of mankind, you first.????

In the UK we have decided to try and save the old and vulnerable. A good choice IMO I'm liaising with neighbours to organise support, shopping and just have an email/phone if needed.  

[Chomper Higgot]

28 minutes ago, nauseus said:

On the way up again already. Damn, I missed it again!

Yeh just rocketing up, the glory days will be back anytime soon.

 

 

[nauseus]

2 minutes ago, Chomper Higgot said:

Yeh just rocketing up, the glory days will be back anytime soon.

 

 

Euro's slipping tho.

[bristolboy]

1 hour ago, nauseus said:

Euro's slipping tho.

If anything good comes out of this, it will be the abandonment of the Euro. If the Northern European members don't loosen the reins on deficit spending, the Euro is toast.

[pacovl46]

11 hours ago, nauseus said:

First you quote the euro and now the baht. Drivel on man.

What seems to be the problem? The article was about the Great British Pound, and it mentioned the value of the GDP in comparison to the Euro. I just pointed out how much it lost in comparison to the Baht, too, since this is the THAI-visa.com forum. 
 

But if it makes you happy the Euro was 54 Baht in 2003 and not it’s at 35. Happy now? 

[nauseus]

8 minutes ago, pacovl46 said:

What seems to be the problem? The article was about the Great British Pound, and it mentioned the value of the GDP in comparison to the Euro. I just pointed out how much it lost in comparison to the Baht, too, since this is the THAI-visa.com forum. 
 

But if it makes you happy the Euro was 54 Baht in 2003 and not it’s at 35. Happy now? 

But your comments were erroneous. The Euro has never been worth more than the pound and 2003 was 17 years ago, not 30.

[saengd]

40 minutes ago, pacovl46 said:

What seems to be the problem? The article was about the Great British Pound, and it mentioned the value of the GDP in comparison to the Euro. I just pointed out how much it lost in comparison to the Baht, too, since this is the THAI-visa.com forum. 
 

But if it makes you happy the Euro was 54 Baht in 2003 and not it’s at 35. Happy now? 

I thought your remark about Pound/Baht values since 2003 were erroneous and not well researched. Yes GBP weakened as it has been doing ever since WWII but that's a long term gradual decline. THB on the other strengthened quite massively in its own right as the economy got stronger and as the currency emerged from the crash of 1997. That accounts for 95% of what you see by looking at things strictly on a numerical basis..

[saengd]

12 hours ago, nauseus said:

On the way up again already. Damn, I missed it again!

Maybe not Vogie. The Dollar Index has weakened very slightly, the VIX is down and gold is off its high but equities are still falling, the game has further to play out yet, think of this as a time out rather than game over.

[vogie]

2 minutes ago, saengd said:

Maybe not Vogie. The Dollar Index has weakened very slightly, the VIX is down and gold is off its high but equities are still falling, the game has further to play out yet, think of this as a time out rather than game over.

vogie did not say this.????

[saengd]

Just now, vogie said:

vogie did not say this.????

Well he should have........I'm sure you may have thought it perhaps.  

 

Brain fart, sorry Vogie, it happens sometimes.

[nauseus]

5 hours ago, saengd said:

Well he should have........I'm sure you may have thought it perhaps.  

 

Brain fart, sorry Vogie, it happens sometimes.

Well. farts apart, the pound has since dropped again! But volatility is everywhere.  

[Chomper Higgot]

1 minute ago, nauseus said:

Well. farts apart, the pound has since dropped again! But volatility is everywhere.  

How many dinners/rents/mortgages/medical bill etc does this ‘volatility everywhere’ buy for expats watching the buying power of their income from the UK dwindle?

[Chomper Higgot]

17 hours ago, nauseus said:

Euro's slipping tho.

 It but but... the Euro.

[Jip99]

1 minute ago, Chomper Higgot said:

How many dinners/rents/mortgages/medical bill etc does this ‘volatility everywhere’ buy for expats watching the buying power of their income from the UK dwindle?

 

 

All of them.

[nauseus]

3 minutes ago, Chomper Higgot said:

How many dinners/rents/mortgages/medical bill etc does this ‘volatility everywhere’ buy for expats watching the buying power of their income from the UK dwindle?

Why don't you crunch the numbers and tell us? The "buying power" of most individuals is decreasing everywhere.

[nauseus]

3 minutes ago, Chomper Higgot said:

 It but but... the Euro.

But but it did. Attacks on the pound (only) here are both typical and boring. It was doing OK from the election until this bloody virus appeared.  

[dabhand]

Interesting BBC article, particularly the last couple of paras indicating a lack of any proper assessment of the economic and social costs of the measures taken, and their impact on lives and health. 

 

https://www.bbc.com/news/health-51979654

[evadgib]

21 minutes ago, Jip99 said:

All of them.

That's the best one liner of the year so far ????

 

THB was 37.9 when I checked an hour ago.

[saengd]

3 minutes ago, dabhand said:

Interesting BBC article, particularly the last couple of paras indicating a lack of any proper assessment of the economic and social costs of the measures taken, and their impact on lives and health. 

 

https://www.bbc.com/news/health-51979654

Sometimes you have to just make a call and there is no time to do a proper in depth assessment, 250,000 deaths versus 20,000 deaths would appear to be one of those times.

[nauseus]

39 minutes ago, dabhand said:

Interesting BBC article, particularly the last couple of paras indicating a lack of any proper assessment of the economic and social costs of the measures taken, and their impact on lives and health. 

 

https://www.bbc.com/news/health-51979654

What is the point of this? Yes, some would pass on anyway within the time-frame of this pandemic but is the BBC to decide or offer an acceptable number of deaths? I don't think so. How many premature deaths are acceptable? How can anyone "over-egg" this? The UK containment policies are still not as strict as China and some other countries have had. Without all best mitigation measures, there would be certainly be avoidable deaths of many younger people too.  

[pacovl46]

10 hours ago, nauseus said:

But your comments were erroneous. The Euro has never been worth more than the pound and 2003 was 17 years ago, not 30.

Yeah, that was a mistake I’ve made and I’ve already copped to it.

[pacovl46]

10 hours ago, saengd said:

I thought your remark about Pound/Baht values since 2003 were erroneous and not well researched. Yes GBP weakened as it has been doing ever since WWII but that's a long term gradual decline. THB on the other strengthened quite massively in its own right as the economy got stronger and as the currency emerged from the crash of 1997. That accounts for 95% of what you see by looking at things strictly on a numerical basis..

Well, I found it remarkable that the GBP as well as the Euro went downhill/Thai Baht went uphill that much. I also find it remarkable that the price for one Baht of gold (15,1 grams if I’m not mistaken) went from 6250 Baht per Baht in 2003 to 6850 just before the financial crisis and then to over 30000 during the crisis. Since I don’t live on Thailand anymore I don’t know the current price. Would love to know, though. 

[pacovl46]

10 hours ago, nauseus said:

But your comments were erroneous. The Euro has never been worth more than the pound and 2003 was 17 years ago, not 30.

Yeah, that was a mistake I’ve made and I’ve already copped to that. I’ve never said anything about 30 years ago or 2003 having been 30 years ago, though.