2007-01-11 09:42:47 · 19 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Because they are smart. Their currency has gained three times the amount the Euro has. Besides when the EU crashes under the weight of too many members and too much regulation the Brits will still have a currency.
When China opens it's currency for investment everone will drop the euro, dollar and yen and buy the yuan. Again Britain is safe because it is a real currency with real value.
2007-01-11 09:47:46 · answer #1 · answered by Anonymous · 4⤊ 0⤋
In the lead up to monetary union all the European currencies had to maintain a certain FX rate to the Euro.
They controlled this by adjusting monetary policy and interest rates to manipulate the rates. Once the stability was maintained they then peg the FX rates to the Euro and effectively stopped all FX movement against the Euro, then the Euro replaced these currencies.
The Pound was in the same mechanism, but it was pegged at a rate which was not sustainable. And eventually the government had to make a choice between staying in the mechanism or dropping interest rates for the good of the UK economy. The strain came too much and they dropped out.
After this they never returned to the system.
The UK more so than the rest Europe is linked to the movements of the USD. Hence the Pound sits between the two currencies and experiences pressures from both sides.
2007-01-11 09:53:46 · answer #2 · answered by andy_bermuda_2003 2 · 0⤊ 0⤋
The British Pound was very strong back in the year 2000 and even stronger in the year 2003 (first year for Euros in your pocket, I think).
The British thinking was... why change our currency when we already have a world class Hard Currency that the world trades in.??
I am American, but I live in Europe. I had seen the Belgian franc go steadily downhill for 10 years. The the euro came out with a starting value of 85 eurocents to the dollar. The euro DECREASED in value at first, and we laughed.
NOW, the euro is worth $1.30 and I'm not laughing. The British pound is still a strong world-class currency, but HAS NOT INCREASED as much (to the $US) in comparison to the little euro.
(I hate having 8 different coins in my pocket... ) or am I just glad to see you?
2007-01-11 09:46:16 · answer #3 · answered by Anonymous · 1⤊ 0⤋
because for once our government did something intelligent.. they pushed all the other european countries into mocing to the euro and then Britain stood back and watched what happened and said " oops didnt quite go the way we planned" and have made every excuse under the sun since why not to join..
I think if England dont join soon... then European countries like France, Germany and Spain will revert back to their currencies..
But if England did join the Euro, it would be a stupid move!!
2007-01-11 09:50:30 · answer #4 · answered by Melinda 2 · 2⤊ 0⤋
Because they have a Government who could not make up it's mind to put it to a vote, or make a decision on it themselves.
The U.K. has lost out in trade, imports from the U.K. cost more due to conversion rates, and Tourists within the Euro Zone can travel from one Country to another without facing Bank Charges, when leaving one Country and going into another. Many Overseas visitors prefer to travel around Europe within the Euro Zone, rather than change their money into various currency's. Wales, Scotland, England, and the I.O.M. have lost visitors for this reason.
2007-01-11 10:16:51 · answer #5 · answered by The Questioner 5 · 0⤊ 0⤋
Because they were wise. the "healthier economy" countries (like Britain is) have all suffered marked increase in prices. the "poorer countries" (not only the new ones joining now, but some that have been there since the beginning) put up with the price increases because the benefits for them outweighed the costs.
2007-01-11 09:53:05 · answer #6 · answered by Pat D 2 · 0⤊ 0⤋
My theory is that had the UK joined the euro it would then have been the strongest and most widely traded currency in the world and the USA would never tolerate that.
2007-01-11 10:12:58 · answer #7 · answered by oslo 3 · 0⤊ 0⤋
Who knows why not! Britain has lost it's identity now anyway! The flood gates are too wide open and every law out there discriminates against true Brits.
2007-01-11 09:53:04 · answer #8 · answered by Princess415 4 · 0⤊ 0⤋
Because for once the British Government got it right. Infact the less we have to do with the EU the better. Bloody Brussels making up stupid laws to govern our country. And so we can pay for any EU overspending.
F U C K the EU
2007-01-13 02:00:28 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I think they didn't take it for several reasons.
1. Their currency is better.
2. Independance and pride.
3. Who the hell in their right mind wants to have anything in common with the French? SHeesh!
4. It made more sound investment strategy to not switch then (and now actually).
2007-01-11 09:56:53 · answer #10 · answered by Akela 4 · 0⤊ 0⤋