Foreign exchange markets 'responding well' to UK recession plan

The measures taken by the UK government and the Bank of England to tackle the recession have been well received by foreign exchange markets, it has been claimed.

Speaking to MPs in the House of Commons, Bank of England executive director Paul Fisher claimed that the fall in value of the pound had been "warranted" during 2008, but suggested the currency is now staging a recovery because of the measures put in place by the bank and the government.

"The markets have responded fairly positively," he told the MPs.

Among the methods employed by the bank to tackle the problem has been cutting the base rate to a record low and introducing so-called quantitative easing, where the bank prints more money to pump cash directly into the economy.

The fall in the value of the pound over recent months has made it more difficult for people planning to emigrate to decide where could offer them the best value for money.

Making an international payment to Europe has become more prohibitive because of the fall in value of sterling compared to the euro.

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By Paul Jarvis