The Duel between Euro and GBP

Right from the ancient time, when human beings started to trade objects and elements for both necessity and luxury, the importance of currency came under consideration. After the short period of primitive exchange mode of trading, the currency became predominant in terms of evaluating an entity and it still holds similar amount of importance today. Although the mode of transaction of currencies have changed over the period, as the expansion of market took place, Globalization became a major term to define the market, and many such complicated yet interrelated occurrences became predominant, the currency remained to be the prime axis for monetary transaction around the world. Different junctures in the history of world economy marked several crucial decisions changing the entire route of world economy.

As uprising or decaying of certain empire marks gross changes in the paradigm of its trade affairs, the immediate implications make its mark in the domain of exchange values of currencies, as currency is the unit of any kind of monetary transaction. The currency GBP, or Great Britain Pound used to be considered as the prime currency of the world, till the very end of last millennium before the uprising of US Dollar as United States became one of the dominant of the binary forces after the Second World War. At the end of last millennium, the world witnessed a grand debate between two currencies in Europe – Eur and GBP, as there were much debate over the issue that whether the liberalist approach in economy should be adopted by UK or not, should the surrender of Eur in GBP, or the other way round is the only way out – these were the primary issues of debate and argument. To elaborate on the issue, one has to get up close with the relation between Eur and GBP, and what were the implications of Eur in GBP as the last millennium headed to its finale.

The Sterling Crisis of 1976

The Sterling Crisis that occurred in 1976 was an obvious continuation of 1973’s oil crisis and the Sterling Crisis evoked major upsets that were about to break in the next decades. The crisis led to major changes including major economic reforms including cuts in public expenditures due to the budget deficit the Government was suffering with. The conflict seen in the later decade on the issue of the intervention of Eur in GBP can be drawn from this point.

GBP Not to Join Eur

When the idea of having a common currency for European Union was initiated, much debate was raised about whether the UK should adopt the Euro or not. There were much of a debate, both in the parliament and among the people about joining the Eurozone, but largely both sections in Great Britain were against it. Following the Eurozone Crisis that occurred in the last decade was reflected upon their decision of foreseeing the future as they consider that the decision of not to surrender GBP into the hands of Eur was a right decision, both for UK and rest of the Europe.

Possible Reasons

The reasons behind the decision of not to adapt the currency of Euro is multi-layered and a detailed analytical discussion is difficult to accommodate in such a short domain. But one could go through the possible consequences, if GBP had been surrendered to the currency for the European Union – Euro. One of the most possible consequences that GBP were bound to face is the economic crisis that sprang over the entire Europe, as countries like Spain, Italy and Greece encountered the biggest economic crisis after the Second World War. Another reason may not be as grave as the economic crisis, but it was crucial too, as the countries outside UK which use the currency GBP, as those countries were not eligible for joining the Eurozone. There are several other possible reasons too, pertaining similar amount of importance.

Later Developments

There were later announcement from the side of the Government that GBP won’t surrender to the Eur in the foreseeable future, as public polling regarding adaptation of Euro, as 57% of the people voted against the joining. The general conversion rate of Eur in GBP is subject to change, depending on the market situation, but the general rate revolves around 1:0.85 for Eur in GBP.

Eur vs GBP: the Online Conversion Sites

There are several online conversion sites that can help you out to define the actual conversion rates applicable that time. As these rates are subject to change at any point of time, accessing these sites can turn out to be of real help.

 

Tags: European Union, Eurozone, GBP, Pound sterling

Category: Money