CURRENT AFFAIRS

Detailed explanation-1: -In Summary A falling Pound makes: UK imports become more expensive and UK exports more competitive. A falling Pound tends to cause higher inflation, but could cause a boost to short-term economic growth through higher exports. A falling Pound might improve the current account as it boosts exports relative to imports.

Detailed explanation-2: -If we look at the last 12 months, we have seen sterling move by 9%, so for a business importing €500, 000 from the EU, their costs have fluctuated by £40, 975. Currency movements can easily wipe out a large proportion of profit in a deal, or worse case, profit for the whole business if not managed correctly.

Detailed explanation-3: -The pound has lost nearly a fifth of its value since the EU referendum. The British pound has fallen 19% to the US dollar since Britain voted to leave the European Union on June 23, 2016.

Detailed explanation-4: -The pound has slid against the euro this year and it risks flopping again in 2023. The UK currency is under pressure from the Bank of England turning more cautious on further interest-rate hikes, just as the European Central Bank amps up its rhetoric on the need for more action to tame inflation.