This House of Lords Library briefing has been prepared in advance of a debate that is scheduled to take place in the House on 17 November 2016 on the impact of the level of sterling on the economy and investment.
Strength of the Pound Sterling: Economy and Investment (464 KB , PDF)
The International Monetary Fund describe the UK’s currency exchange as free-floating. Under such a system the value of a given currency is the result of a set of complex relationships between economic conditions and market forces. Consequently, the value of the pound has always fluctuated against other currencies in response to these forces. Following the result of the UK’s referendum on its membership of the EU, the value of the pound against both the US dollar and the euro fell markedly. The exchange rate of the pound against the US dollar and the euro has continued to fluctuate. A weakened pound has several implications for various aspects of the UK economy, notably imports and exports and the price of goods and services.
Daily Spot Exchange Rate between Pound Sterling and the US Dollar and the Euro, 4 November 2015 to 4 November 2016
(Source: Bank of England, ‘Spot Exchange Rates; XUDLERS and XUDLUSS’, accessed 4 November 2016)
This briefing presents information from the International Monetary Fund on different ways in which currency exchange systems can be classified. It then provides recent data on the value of the pound and commentary and analysis on the implications this has for aspects of the UK economy.
Strength of the Pound Sterling: Economy and Investment (464 KB , PDF)
This briefing is the fifth of a series on the post-war history of the UK economy. The series proceeds decade-by-decade from the 1950s onwards, providing an overview of the key macroeconomic developments of each decade. This fifth briefing looks at the 1990s. In this decade the UK economy settled into a period of low inflation and steady growth; however, living standards growth was lower and more regionally concentrated than in previous decades.
While international attention has largely been focused on the Middle East and Ukraine, the civil war in Sudan continues. The UN has characterised the conflict as the “world’s largest hunger crisis”. As peace negotiations stall, concerns are rising not only for the people of Sudan but also about the conflict spreading to neighbouring states.
The Budget Responsibility Bill would require ministers to request an assessment from the Office for Budget Responsibility (OBR) for every major fiscal announcement and give the OBR the power to decide to publish one if the minister failed to request it. This follows the September 2022 ‘mini-budget’. The statement included plans that would have resulted in a projected £45bn reduction in tax income. It did not have an accompanying OBR assessment.
