British pound August 2007

The pound’s (GBP) sharp decline in the early 80s was matched by a decline in its import weight, indicating British imports were not competitive even with the currency-derived discount. Those weights have continued on a gradual downward path to this day.

American export weights to the UK began a similar decline in the early 90s once the pound entered what has proven to be a trading range of unusual duration. Regardless of the pound’s direction, the share of American trade claimed by the UK has declined over the past 15 years.