What of the rumors? Rumors that, faced with a currency dropping like a stone, a lot of previous policy statements are going to be junked and the United Kingdom might make a relatively rapid emergency dive into the Eurozone. ft.com doesn’t seem to carry the story/suggestion anywhere that I can see, presumably not dignifying it with any unmerited publicity.

Ministers and civil servants have been known to drop these hints, obviously as testing of the waters - at the moment, so quietly that barely any ripples of discontent are noticeable - there are one or two other news stories from the financial markets regularly hitting the main headlines currently…

Maybe these hints go with the territory when a currency has lost 30-40% of its value over 3 months. It would be, frankly, weird to inconceivable at present, these aren’t losses that can’t be regained, once a little sanity has prevailed.

But - even though it is impossible vague speculation - what would the entry point be? As of today, the Euro is worth 85p. At this rate, parity might be considered and would be an impetus to the whole project

Strictly, GBP has only around as a currency in the modern sense since 1931 and the abandonment of the gold standard - but there would be a lot more history than this being thrown away if it were happen…

2 Responses to “UK to ditch Pound and enter Euro?”

1. Forex » UK to ditch Pound and enter Euro? says:

   December 2, 2008 at 12:03 pm

   [...] faced with a currency dropping like a stone, a lot of previous policy statements are going to be junked and the United Kingdom might make a relatively rapid emergency dive into the Eurozone. [...]

   Reply
2. ForexDame says:

   December 4, 2008 at 10:35 am

   Ys, but who’s dropping these hints, Jose Barosso making some mischief, and curiously Peter Mandelson now that he’s gone a bit mad with his power returned to him. Gonna end badly for Mandelson, always does.

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