Sterling exchange provided 'buffer' for fiscal debts, says Stheeman

Sterling's worth on the foreign exchange markets could have provided a buffer for the UK's debts.

This is according to Robert Stheeman, the head of the UK's Debt Management Office.

Mr Stheeman said that countries such as Greece, Ital and Spain were facing particular difficulties in solving their budget deficits because they were part of the euro zone.

The UK on the other hand, will benefit from the historic strength of its single currency, according to the debt official.

Mr Stheeman added that the fall in the value of sterling in the currency exchange markets may not be a bad thing.

"Whenever sterling does appear to weaken from recent strengths, actually that tends to act as a catalyst for overseas interest. That's quite a significant factor," he said.

The UK economy looks to be slowly returning to growth, as figures released today (February 26th) saw the upward revision of gross domestic product (GDP) from the earlier 0.1 per cent to 0.3 per cent.

Posted by Eleanor Ward

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