Why is the British pound worth so much more than the dollar?
Answer:
I thought they used euro
i don't know but i hope they don't get rid of it for the euro. i think thay are trying to get us used to euros because our new £20 note looks more like a euro than it does english money.
because foreign trade fluctuates and currency value does as well
The pound use to be worth more. However, since the current administration I've noticed a controlled devaluation of the U.S. currency against most currencies in, what I believe, is an attempt to make other world economies appear stronger. Just my 2 cents.
it would seem that their government's management of the economy is better than ours.
eg. gas costs $8 a gallon.
so they import much less gas than we do.
and their cars get much better fuel economy.
they have higher tariffs on imported goods, so their manufacturing sector can compete, and they still have jobs.
as opposed to our export of jobs, so that we have nothing to sell that anyone else wants to buy.
and stuff we do sell, that can be made anywhere else, won't sell unless the value of the dollar is considerably less.
you've only seen the tip of the iceberg.
it's going to get far worse.
and prospects for improvement are, at the moment, invisible.
It is one of those apples to oranges thing. You can ask the same thing about the Japanese Yen. Japan is typically a strong economy, why is it that 120 Yen is worth $US1? Why? Well maybe we are really comparing the Japanese equivalent of a penny to the US dollar. Similar in the pound. A pound is not a dollar, and maybe you are comparing something more of a $2 bill to the US dollar bill.
Anyway, these things all had their starting points and the strength reported is based over that history, and current changes. Strength is not the nominal ratio. As stated, the US pound use to be more than $2 US.
The demand for Pounds has remained relatively the same recently, but the supply has gone down. Hence, the revaluing of the GBP.
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