Letter: Join the euro club

Paul G. Ratcliffe
Thursday 30 April 1998 18:02 EDT
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Join the euro club

FOR A moment when I read John Redwood's article "When the new tills ring" (27 April) I thought he must be visiting from another planet.

Most interesting from a former DTI minister is the idea that wicked foreign companies "may decide that this is the time to force the British supplier to take the currency risk". In fact, British companies have bid and paid in German marks, French francs, US dollars etc for decades, in order to remain competitive. And for just as long, a forward foreign exchange contract has helped them to hedge the risk. It's not a euro issue - it's daily business.

But wait - surely the best way to avoid this problem of exchange risks is to join the single currency. Then everyone can avoid paying exchange rate premiums to those nasty foreign exchange dealers.

Mr Redwood's obsession robs him of the vision which other nations such as the Austrians have. They are already dual-pricing in euro, and quoting euro equivalents in their daily papers - even on the stock market pages - to prepare their people nine months before the currency is even introduced. They will use the change to accelerate the gradual move away from the 19th-century medium of notes and coin, with its risk of forgery and convenient untraceability, and towards electronic payment by debit card and the electronic purse.

Oh, for politicians who can see the potential of an inevitable idea rather than fighting to preserve a better yesterday!

PAUL G RATCLIFFE

Tunbridge Wells, Kent

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