Currency exchange choices 'could help UK'

The fact that the UK can chose to devalue sterling on the currency exchange markets could help the country to avoid the same fate as Greece, it has been claimed.

Government debt problems recently led ratings agency Standard & Poor's to downgrade the Mediterranean country's credit rating to 'junk' status.

Various economic difficulties have ensued, resulting in renewed concerns over the UK's budget deficit.

However, experts have suggested that the UK has an extra card to play due to its independent currency.

Jeremy Batstone-Carr, an analyst at Charles Stanley stockbrokers, told the BBC: "It [the UK] could, if it wanted to, devalue its currency and that would relieve some of the pressure."

Lord Mandelson, the UK's business secretary, commented on the suggestions that the UK could face the same fate as Greece, noting that that the two countries had "very different economies".

"Britain is not Greece. Greece is not Britain," he added.

Click here to see how much you can save with HiFX's Foreign Exchange services
Posted by Eleanor Ward