QuicheFontaine
Member
Hello UK gaf, everyone having a good day?
I had a question that I was hoping some of the more learned posters could help me with, it's about the devalued pound.
I've seen a large number of people saying this isn't a bad thing and that the pound had in fact been overvalued for decades and that now it's back to normals levels, we'll be much more competitive, which seems reasonable at first glance, but upon thinking about it further, doesn;t this scenario require us, the UK, to be a largely manufacturing country with an export deficit?
As I understand it, we primarily export services and those are immune from currency devaluations, so how does a weaker pound benefit us?
Isn't it the opposite? We're negatively impacted compared to a few months ago?
How are services immune from currency devaluations? I provide services for foreign clients, and if I bill them in dollars it's currently much cheaper for them than it was a year ago.