Great Britain Economic Information
Central Bank: Bank of England (BoE)
Currency: British Pound, Pound Sterling (GBP or £)
Informally known as the pound or quid, the pound sterling has been a popular choice among investors. That's because Great Britain's economy has historically been one of the strongest in Europe. In addition to its long-standing history of stability, the pound enjoys its status as one of the most traded currencies on the foreign exchange. While Great Britain is a member of the European Union (EU), the country's government has chosen not to adopt the euro and debates the level of economic interaction it should have with the EU. The outcome of this debate could have an impact on the country's trade freedom.
Key industries:
Machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing and other consumer goods.
Agricultural products:
Cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry and fish.
Export commodities:
Manufactured goods, fuels, chemicals, food, beverages and tobacco.
Import commodities:
Manufactured goods, machinery, fuels and foodstuffs.
Historical foreign currency exchange rates
 Downward Trend |
 Upward Trend |
| Source: These exchange rates are interbank rates as published by Interactive Data as of 8/29/2010. These rates were not available to retail customers and were not the rates offered by EverBank. Past performance does not guarantee future results. |
A few factors to consider when evaluating the British pound:
Reasons to consider
- United Kingdom's Purchasing Managers Index (PMI) for February was better than expected.
- The Organization for Economic Co-operation and Development, predicts growth of 1.2% in 2010 and 2.2% in 2011.
- U.K.'s saving rate soared from 1.5% of disposable income in 2008 to 8.6% in the 3rd Q of 2009, above its average of 6.7%.
Risk factors to consider
- The British pound is down -7% against the dollar in the first 3 months of 2010.
- Britain ended 2009 in a recession; the deepest and longest recession since the Second World War.
- Private consumption dropped by 3% in '09, the biggest decline in 60 years.
- Consumer spending is likely to remain unchanged this year. Consumer spending makes up two thirds of GDP.
- Base rate has been at a record low of .05% since March, 2009.
- Budget deficit is forecast, by the Treasury, to equal 12.6% of GDP in 2009-2010, and 12.0% in 2010-2011.
- Bank of England has purchased close to £200 Billion of assets, mainly government bonds, in the name of quantitative easing.
How EverBank can help with your British pound needs?
WorldCurrency® CDs (Single-currency CDs): Earn interest rates at local rates in the currency of your choice.
WorldCurrency Basket CDs (Multi-currency CDs): Open a single CD comprised of multiple currencies, each designed to focus on a specific regional strength, and/or geopolitical and economic development. This currency is available in the following Basket CD(s):
WorldCurrency Access Deposit Account: Open a transactional money market account in the currency of your choice.
I'm interested in opening a WorldCurrency account, what is my next step?
Please note: Not all investments are right for all investors. You should conduct your own research and/or consult with an investment advisor before making any investment.
- Before opening a WorldCurrency® account, we recommend reading the following pages:
- If you are ready to open your WorldCurrency account, apply online or call 800.926.4922 for more information.
- For your protection, we require that you sign and mail your application along with a deposit.
