Sterling exchange rate

Note The figures should be read horizontally, to compare total GNP (not per capita) in each year with the UK. The vertical figures do not measure growth, only change relative to British GNP. The sharp increase in the rate of relative decline of British GNP between 1966 and 1969 reflects the effects of devaluation of sterling on international comparisons based on current exchange rates. 

The repo market has allowed the hedge fund to borrow in sterling at a rate below the cost of unsecured borrowing in the money market (4.95%). The repo market maker is overcollateralised by the difference between the value of the bonds (in ) and the loan proceeds (2%). A rise in USD yields or a fall in the USD exchange rate value will adversely affect the value of the bonds, cansing the market maker to be undercollateralised. 

There are arguments for and against whichever units are used but we have chosen to standardize on tonnes for weight (tonnes), degrees centigrade for temperature (°C), and atmospheres for pressure (atm). Both pounds sterling ( ) and U.S. dollars ( ) are used for monetary values because of the volatility of their exchange rates over the last two decades. Billions are U.S. billions, i.e. one thousand millions. 

Table 3.4 National Income per Head UK and Selected Countries, 1960, 1973 and 1982 (incomes per head in pounds sterling at prices and exchange rates relevant each year)...

The rate of exchange in January 2004 was 1.82, so the cost in pounds sterling will be... 

If it can be assumed that world market forces will level out the prices of equipment, the UK price can be estimated from the US price by bringing the cost up to date using a suitable US price index, converting to pounds sterling at the current rate of exchange, and adding an allowance for freight and duty. 

Where prices are given, the rate of exchange has been taken as twenty-five francs to the pound sterling, whatever the date of the statistics in question. 

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