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Exchange rate
The price of one currency expressed in terms of another.
Depreciation
When the exchange rate of a currency goes down, making it weaker.
Appreciation
When the exchange rate of a currency goes up, making it stronger.
Strong Pound
When the exchange rate of the pound increases, making it more valuable compared to other currencies.
Weak Pound
When the exchange rate of the pound decreases, making it less valuable compared to other currencies.
Exporters
Businesses that sell goods or services to foreign countries.
Importers
Businesses that buy goods or services from foreign countries.
Cheap Import
When the exchange rate of the pound depreciates, making imported goods cheaper for businesses.
Expensive Export
When the exchange rate of the pound appreciates, making exported goods more expensive for foreign countries.
Happy Importers
Importers benefit from a weaker pound as their costs decrease and they can reduce prices or make more profit.
Unhappy Importers
Importers are negatively affected by a stronger pound as their costs increase and they have to pay more for foreign currency.
Happy Exporters
Exporters benefit from a stronger pound as their goods become more expensive for foreign countries, making them more competitive.
Unhappy Exporters
Exporters are negatively affected by a weaker pound as their goods become cheaper for foreign countries, reducing their competitiveness.
Note
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