On October 22, 2009
Counting on Dollars: Backing a Loser?
About half the FTSE 100 companies, by value, now report their accounts in US dollars, not pounds. But with the greenback losing its international status, have they chosen the wrong currency? The problem is not whether the dollar is currently strong or weak — though that does affect UK shareholders — but whether it is still the world’s international currency of choice. As a global common denominator, the dollar is in decline. Its loss has been the euro’s gain. Although created only a decade ago, the European single currency is now an established medium of exchange, second only to the dollar in trading volumes. Yet while UK companies as diverse as AstraZeneca, BP, Experian, HSBC and Smith & Nephew add…
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