R.i.p ireland

[ber]

You can announce a set devaluation or you can allow the currency to drop and not try to prop up it's value the end result is the same the currency is devalued. You don't have to announce a devalution for one to take place.

That is a market flucutation which happens every day,agreed this is a more marked one but the markets can rise again as they did a couple of months ago but if u intervene and devalue a currency it will remain so until u intervene again

[Stewie]

That is a market flucutation which happens every day,agreed this is a more marked one but the markets can rise again as they did a couple of months ago but if u intervene and devalue a currency it will remain so until u intervene again

Wrong ber market fluctuates whether you devalue or not. Your confusion seems to be based on the ERM of the early nineties under that as a lead up to monetary union prospective currencies had a floor and ceiling against each other which they were committed to keeping their currency with in those bounds. The punt came under pressure as speculators bet that it was valued to high and Ireland spent blooms propping up the currency until they eventually gave in and devalued whereas the UK pulled out and allowed sterling to float.

The devaluation applied to the bands of the ERM but now sterling and the euro float and are not set at any particular level in relation to each other or any other currency other than countries have ranged they prefer their currency to be at for import and export reasons. If the value moves to far away from that range they generally intervene either buying or selling their own currency depending on whether it is too strong or too weak.
Sterling has fallen at times to near parity with the euro and the uk has not massively intervened happy to let sterling drop in value or devalue against other currencies. Even if Britain announced a devaluation of it's currency it could and in all likelyhood would regain it's value over time unless Britain intervened to keep sterling low. It would only be a permanent feature if the currency was fixed against other currencies which sterling is not.

[ber]

Wrong ber market fluctuates whether you devalue or not. Your confusion seems to be based on the ERM of the early nineties under that as a lead up to monetary union prospective currencies had a floor and ceiling against each other which they were committed to keeping their currency with in those bounds. The punt came under pressure as speculators bet that it was valued to high and Ireland spent blooms propping up the currency until they eventually gave in and devalued whereas the UK pulled out and allowed sterling to float.

The devaluation applied to the bands of the ERM but now sterling and the euro float and are not set at any particular level in relation to each other or any other currency other than countries have ranged they prefer their currency to be at for import and export reasons. If the value moves to far away from that range they generally intervene either buying or selling their own currency depending on whether it is too strong or too weak.
Sterling has fallen at times to near parity with the euro and the uk has not massively intervened happy to let sterling drop in value or devalue against other currencies. Even if Britain announced a devaluation of it's currency it could and in all likelyhood would regain it's value over time unless Britain intervened to keep sterling low. It would only be a permanent feature if the currency was fixed against other currencies which sterling is not.

I think u misunderstand me i know the current sterling situation is linked to the markets and as u
have said will in all likelyhood end up with a similar value that it had before this crisis began
when the ddust settles and world econmies stabalise

[Stewie]

I think u misunderstand me i know the current sterling situation is linked to the markets and as u
have said will in all likelyhood end up with a similar value that it had before this crisis began
when the ddust settles and world econmies stabalise

but if u intervene and devalue a currency it will remain so until u intervene again

Sorry if I misunderstood, But thats what you appeared to be saying here ber