Because the uk Pound has fallen against the US dollar at about the same rate as our dollar has fallen, we are still just about at parity with the UK currency:
Quick explanation for the under 40s : At the time decimalisation came in we had a Pound and the Poms had a pound, both around the same value although at one stage the Oz pound was a worth about 21 UK shillings.
There were 20 shillings to the pound. Most of the Commonwealth went decimal around the same time. Most (Aus, NZ, South Africa etc) went for the ten shilling unit for their new currency as at that time it was deemed more user friendly on a daily basis at a time when wages were about 20 pounds a week. So one old pound = two new dollars. The poms stuck to the pound unit which will buy you a Mars Bar nowadays if you are lucky.
Thus: if our dollar is worth half a UK pound (ie 50 pence) we are effectively at parity.An example of NOT parity was a few years ago when our dollar dropped to about 33 pence.
NOW, having cleared that up, we are sitting at about 48 to 49 pence which is where we were before the financial crisis, and probably about as good as it's going to get for the time being.
Therefore would it be safe to assume that buying UK ingredients such as Maris Otter floor malted, Nottingham yeasts etc we are not going to see the big price rises we can expect with US ingredients such as Wyeast, Amarillo, Carawhatsits, etc????
I am assuming that our suppliers such as Ross are able to buy using Aus Dollars to UK pounds exchange rate and not have to buy in American dollars? As principally a UK ale brewer nowadays I'm interested in what's happening in the trade.
Quick explanation for the under 40s : At the time decimalisation came in we had a Pound and the Poms had a pound, both around the same value although at one stage the Oz pound was a worth about 21 UK shillings.
There were 20 shillings to the pound. Most of the Commonwealth went decimal around the same time. Most (Aus, NZ, South Africa etc) went for the ten shilling unit for their new currency as at that time it was deemed more user friendly on a daily basis at a time when wages were about 20 pounds a week. So one old pound = two new dollars. The poms stuck to the pound unit which will buy you a Mars Bar nowadays if you are lucky.
Thus: if our dollar is worth half a UK pound (ie 50 pence) we are effectively at parity.An example of NOT parity was a few years ago when our dollar dropped to about 33 pence.
NOW, having cleared that up, we are sitting at about 48 to 49 pence which is where we were before the financial crisis, and probably about as good as it's going to get for the time being.
Therefore would it be safe to assume that buying UK ingredients such as Maris Otter floor malted, Nottingham yeasts etc we are not going to see the big price rises we can expect with US ingredients such as Wyeast, Amarillo, Carawhatsits, etc????
I am assuming that our suppliers such as Ross are able to buy using Aus Dollars to UK pounds exchange rate and not have to buy in American dollars? As principally a UK ale brewer nowadays I'm interested in what's happening in the trade.
