MarketTrustee:

I would suggest that Ireland's miracle industrial growth over the past decade is vulnerable to the similar credit dependencies more so than ForEx ties to the UK.

Although the Sterling area is our biggest single market, the Eurozone, taken as a whole, is much bigger.  I suspect most Irish corporate borrowing is in Euros - interest rates have been low, and why take on exchange risk?

The problem for the Brits is that with so much of their borrowing denominated in $ and €, they have to pay back so much more as Sterling depreciates.

Longer term this can be offset by the improved competitiveness of Sterling based companies, but short term it must make their borrowings look pretty scary.

For many companies, there may be no long term.


notes from no w here