September 24, 2022
The British pound recorded its lowest value against the dollar in 37 years |  Economie

The British pound recorded its lowest value against the dollar in 37 years | Economie

The pound sterling recorded this Wednesday (7) its lowest value against the dollar since 1985. The British currency was down 0.96% around 11:00 AM ET, at $1.1409.

The pound has reached its lowest level in comparison in 37 years as it has been affected in recent weeks by recession fears in the United kingdom. Rising inflation and the search for the US currency as a value of refuge in the context of an accelerating global economy have contributed to market uncertainty.

Like many developed countries, the United kingdom It experiences a sharp rise in prices, but is particularly affected by natural gas. The war in Ukraine has led to high prices for inputs on the international market and the country is highly dependent on this energy source.

This will be one of the challenges for the new Prime Minister, Liz Truss, to restore the British economy. I went He was sworn in on Tuesday (6) in front of Queen Elizabeth II In a castle belonging to the Scottish royal family.

Truss was chosen by the Conservative Party, which rules the country, to replace Boris Johnson, who resigned in July and He officially resigned this week.

The prime minister set three primary priorities: giving an initial boost to economic growth by cutting taxes, helping families with electricity bills, and improving public health.

“I will address the energy crisis this week to deal with the electricity bills,” Truss said in his inaugural address.

It is known that it will struggle to convince markets of the effectiveness of its measures to stimulate the economy. The plans are due to be announced on Thursday and may include a freeze on energy charges.

The prospect that the country will continue to take on debt to fund the measures, after record indebtedness due to the pandemic, makes British assets less attractive.