£ Sterling slump

Delancey

In the past 5 - 6 weeks STG has fallen around 7 cent against the Euro , this is a significant fall by any standards and will not only make life difficult for Irish companies seeking to export to the UK but also make cross-border shopping more attractive in the run up to Christmas.

What is driving this fall in Sterling ? Will it fall much further ?

Mr.Micro

I suspect its the resurgence of the once mighty German economy.

Shopping up North this christmas I think

ei.sdraob

delancey42 wrote: »

What is driving this fall in Sterling ?

Could be this, more money printing being given the green light by the chancellor...

Cookie_Monster

yeah as above, purpose devaluation to encourage exports is behind it I reckon

GSF

ei.sdraob wrote: »

Could be this, more money printing being given the green light by the chancellor...

It really looks like the UK & the US want to inflate away their debts. Its going to make Irelands position pretty untenable in the euro before long.

westtip

Well its a double edged sword for me:

My UK based pension pot is devaluing all the time

My UK based credit card bill is coming down!

meditraitor

Is there any figures on our imports v exports to the UK? Because it seems to me that if we are importing more goods and services from the UK then the devalued £ is a good thing.

Tazz T

Me too.

About 75% of my earnings come in from the UK (cos there's sod all work here now) and that means less euro. Still better than than last year when it was nearly 1 for 1.

Still worth doing your Xmas shopping up North (and having a night out is miles cheaper).

ei.sdraob

meditraitor wrote: »

Is there any figures on our imports v exports to the UK? Because it seems to me that if we are importing more goods and services from the UK then the devalued £ is a good thing.

http://www.cso.ie/releasespublications/documents/external_trade/current/extrade.pdf

see table 4 on page 6

our exports to UK are down by half a billion our imports are slightly down too, they also have stats for NI

Tazz T

meditraitor wrote: »

Is there any figures on our imports v exports to the UK? Because it seems to me that if we are importing more goods and services from the UK then the devalued £ is a good thing.

Yeah, it's cheaper for us to bring stuff in, but it money going out of the economy.

I, on the other hand, by exporting services, bring in the sterling which ends up in our economy (tax, pubs, supermarkets, etc).

meditraitor

Tazz T wrote: »

Yeah, it's cheaper for us to bring stuff in, but it money going out of the economy.

I, on the other hand, by exporting services, bring in the sterling which ends up in our economy (tax, pubs, supermarkets, etc).

The statistics ei.sdraob has provided show that we import more than we export to the UK (top of page 6) so would that not be better for our economy as a whole?
The rate of decline in our exports is faster as well! In the short term while our ecomony contracts is this a bad thing.

Take into account the fact we will not be increasing output anytime soon.....

ei.sdraob wrote:

http://www.cso.ie/releasespublicatio...nt/extrade.pdf

see table 4 on page 6

our exports to UK are down by half a billion our imports are slightly down too, they also have stats for NI

xavidub

This is bad news for us as it will only worsen our balance of payments but the UK economy is in a pretty poor state so a fall in the value of Sterling was inevitable. The PSBR over the next few years will be relatively high and growth will be low.

Fratton Fred

the drop started, I believe, the day that the full bank bail out in Ireland was announced.

I think people underestimate the importance of the Irish economy to the UK one. I'm not suggesting this is the full reason, but it could be part of it.

senordingdong

I say wait untill November before we decide if we're going to dash across the border.

road_high

ei.sdraob wrote: »

http://www.cso.ie/releasespublications/documents/external_trade/current/extrade.pdf

see table 4 on page 6

our exports to UK are down by half a billion our imports are slightly down too, they also have stats for NI

As a little aside what do we export to Belgium of all places that's worth over 7 Billion :eek:...2 Billion more than exports to UK

ei.sdraob

mfitzy wrote: »

As a little aside what do we export to Belgium of all places that's worth over 7 Billion :eek:...2 Billion more than exports to UK

Hmm theres a breakdown for "rest of EU" on page 7 but not country level details

As an aside I worked with a company in Belgium last year (nice chaps) and sold them internet services so that would count as a service export. Having a single currency was quite convenient something that's a bit of a pain when working with UK/US companies due to constant currency fluctuations which make planning harder..

Citizen_Cutback

mfitzy wrote: »

As a little aside what do we export to Belgium of all places that's worth over 7 Billion :eek:...2 Billion more than exports to UK

A bit of transfer pricing involving multinational/s in the Chemical, Medical and Pharmaceutical Industries?

xavidub

Citizen_Cutback wrote: »

A bit of transfer pricing involving multinational/s in the Chemical, Medical and Pharmaceutical Industries?

....Is the right answer

Bottle_of_Smoke

This has happened the last 2years at least.

Here's a thread I started in 2008, http://boards.ie/vbulletin/showthread.php?t=2055413318

Does the UK get a lot of Christmas shoppers other than the cross border ROI traitors?;)

senordingdong

Bottle_of_Smoke wrote: »

This has happened the last 2years at least.

Here's a thread I started in 2008, http://boards.ie/vbulletin/showthread.php?t=2055413318

Does the UK get a lot of Christmas shoppers other than the cross border ROI traitors?;)

I think they do it intentionally the lure us...