More than half of UK exporters want single currency
March 12th, 2008
Item submitted by: Northamptonshire Chamber
Nearly two thirds of UK exporters (63%) have backed calls for a referendum on the UK joining the single currency, according to a major new survey of exporters carried out by the Credit Management Research Centre, at Leeds University Business School.
In the event of a referendum taking place, 55% of exporters would vote in favour of the euro, an increase of 12% compared to 2006.
The Coface Export Survey, a survey of UK exporters previously carried out in 2002 and 2006, also reveals that of those in favour of the euro, the biggest motivation is to see more certainty surrounding exchange rates (44%).
Greater price transparency was an important factor for 28%, and 26% of those voting for the euro cited lower transactional costs as a key factor. Service firms are more likely to vote in favour of joining the euro (62%), compared to manufacturing firms (51%).
Professor Nick Wilson, director of the Credit Management Research Centre, added: "Exporters are on the front line when it comes to sensing a change in the world economy and this year's survey points to a growing sense of pessimism for the year ahead. With harder times on the way, exporters are focusing on their cash flow and the avoidance of bad debt. Given the understandable popularity of trading on open account they will have to think carefully how they ensure they are paid on time."
The Coface Export Survey records UK exporters' experience of credit management and their views of the services designed to manage the risk of trading overseas. The results are analysed by geographic region, size of business, trade sector and UK region. A summary can be downloaded from the home page of www.cofaceuk.com
The Northamptonshire Chamber is running a seminar for importers and exporters on the subject of The Authorised Economic Operator (AEO) status on Tuesday 18 March. For further information, click here.
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