Banks for sale!!!

Taxpayers may have to wait until 2015 before they start getting back the £40bn used to prop up failing banks. UK Financial Investments (UKFI) believes it may take that long before it can sell most publicly owned shares in RBS, Lloyds and Northern Rock. The government body had been hoping to offload them sooner, but there are fears this could result in huge losses.

The question I find myself asking is what will fill the £40bn hole in the meantime? And I keep coming up with the same 2 answers, increases in taxes and cuts in public spending – neither of which I think will have a positive effect on Sterling exchange rates.

We at FCD are always looking for our client’s thoughts and opinions on what they think will happen to the market and where they see exchange rates going? So why not let me know your predictions. Where do you see EUR and USD exchange rates 3 months from now? Email me at sah@currencies.co.uk and I will publish the findings in my next blog.