As someone who lives in the UK why is Sterling generally stronger than many other, more widley used currencies like the Euro or Dollar?

Question

As someone who lives in the UK why is Sterling generally stronger than many other, more widley used currencies like the Euro or Dollar?

In: 0

Answer 1

It’s not stronger, it’s just a different unit. The Euro & Dollar are generally much more stable and better backed, which is usually what we mean by “stronger”. The Euro & Dollar are both attached to considerably larger economies than the Pound Sterling.

The original discrepancy in value of the units comes from their definition…they were tied to different quantities of silver. Both have drifted plenty over time since they’re not tied to metal anymore.