The sterling has been generally regarded as one of the high value based currency reserves of the world. Its value, in respect to the other currencies, has been on the higher side. This has been because of various reasons, one of the main being the good and reliable financial markets that the United Kingdom is able to offer to investors worldwide. Due to the stability within the UK, and the ensuing level of trust, it has been able to attract massive inflows because of the bourses and financial markets, particularly in London, providing burgeoning returns. The high value further, allowed greater consumption by the people of the United Kingdom, allowing greater imports and out of country vacations. The current financial crisis however sees the Pound Sterling being drastically devalued.
In recent months, the Sterling's decline in value in relation to the euro is interpreted by economists and some political elements within the United Kingdom as evidence of diminishing faith in the British economy on worldwide currency markets. Political elements, especially those belonging to the liberal side have rushed to blame the policies of the Prime Minister Gordon Brown for the collapse in the Sterling's value (Heffer). ...Show more