By Max Clarke
There has been a huge increase in UK firms, and in particular small enterprises, purchasing their stock from within the eurozone, report Caxton FX. The average number of purchases during 2011 is up 18% on the previous quarter.
The world has faced a huge number of crises recently, from natural disasters and political unrest to the global financial meltdown of the past two years. Every economy has been affected. Rupert Lee-Browne, CEO of Caxton FX, believes this has lead to people keeping their money closer to home:
“The eurozone accounts for over half of the UK’s foreign trade. Since the start of the year there has been a significant 18% increase in UK firms importing from the eurozone through Caxton FX. With all the global difficulties over the past few months, UK businesses - SMEs in particular - appear to be putting their trust in the eurozone, and spending their money nearer to home.”
With the disaster in Japan and the political unrest in the Middle-East this trend seems likely to continue into the coming months. Lee-Browne concludes:
“It is unlikely that fluctuations in the currency market have had a huge influence on the figure, as sterling hasn’t been strong enough against the euro to justify an increase in investment. It appears to be more a case of businesses putting their money where they can see it.”