jopavi73

I know I can't be the only person who's experienced the loss in value of the UK State Pension since Brexit was announced. Once converted my pension has declined by about 20%, is everyone having similar problems? I fear that with a strong US $ and the bumbling ineptocracy in the UK this downward slide will continue.

BritInParis

It’s the uncertainty that’s weakening the pound rather than Brexit itself. Providing we do actually come out in 31 October it won’t take long for the dust to settle and the rate to rebound.

Rete

Just what we said about the rate of exchange for the Canadian Dollar. Been years and it hasn't gotten better in the least.

jopavi73

Thank you for that encouraging scenario. Planning for the worst and hoping for the best!

petitefrancaise

the damage done to the economy so far is going to be felt for a very long time. Even if Brexit doesn't go ahead. In the USA, the 2nd biggest growth sector is technology - and the UK has already lost future jobs with the biggest companies since they've all put EU HQ's in Ireland. If you look at the biggest tech companies in the UK, well, who???

USD/UKP 5 year drop is pretty impresssive:
https://www.bloomberg.com/quote/GBPUSD:CUR

and historical data shows that after a precipitous drop, the pound doesn't get back up to previous levels.
https://www.macrotrends.net/2549/pou...storical-chart

BritInParis

Been years since when? The UK hasn't left yet.

jjmb

BritInParis You are being optimistic, to say the least. Hope you are are right though.

BritInParis

That some multinational companies have been setting up European HQs - often little more than a brass plate - in Ireland has little to do with EU membership and a lot to do with favourable corporate tax rates. All that will come crashing to a halt when the EU imposes corporate tax harmonisation on all its members in the near future, particularly if the UK then has the lowest corporate tax rate in Europe outside of the microstates. The actual high-value jobs themselves have remained and continue to be created in the UK - particularly in the fintech sector. Google may be based in Dublin for tax purposes but it's just finished building a £1 billion office in London. The UK is third in the world in producing successful tech companies, behind the US and China and is the world's largest FDI destination in Europe, bring in more capital than France and Germany combined over the last three years with huge amounts waiting to go as soon as the Brexit limbo is resolved.

lansbury

jopavi73

I have never paid Fed or State taxes but that's of little comfort when the amount keeps declining every 4 weeks!

There's always the possibility that some EU countries are waiting to see if the UK can extricate itself successfully and a domino effect will follow! God only knows what will happen then.

MMcD

Ditto
Ditto the Ditto
Then Ditto that
" " " " "...ad nauseum
can't bear to think about it

scot47

Ah do not worry. It will soon be back at the historic rate of £1 = US$4,80.

MMcD

ah yes, the "good old days" - like back in the Pleistocene Epoch (the last Ice Age), when Currency Markets were immutable - rates frozen, advantage GBP to USD

scrubbedexpat091

Hasnt the CAD$ historically always been lower vs the US$.

Granted there was a couple year period during the 2008 recession period and high oil prices where the CAD$ got to par and stayed high for a bit but that does not seem to be the norm.

scot47

MMc That exchange rate plus Queen Victoria back in charge and a World Map dominated by the red of the British Empire ! THAT was what the Brexit vote was about.