Promising Survey Strengthens Pound

Although the British pound suffered earlier in the week from a large Bank of England loan, the currency has been lifted due to a survey taken by UK manufacturers. The results of the survey, which inquired about their order books, showed that manufacturers were more successful this month than they’ve been in over a decade. Analysts did not expect such a promising report, as it proved that the UK is handling global credit problems better than most countries. According to Forbes:

The Confederation of British Industry revealed that a balance of +9 pct of firms polled reported that their order books were above normal in August – the highest level for more than 12 years.

Read more: Pound boosted by buoyant UK manufacturing survey

Pound Weakened After Large BoE Loan

Although it is not known whether the Bank of England loaned £314 million to one borrower or many yesterday, the effects were still the same. A one-day loan of such magnitude weakened the domestic currency, if only temporarily. As experts point out, this isn’t entirely unusual and the economy has survived much larger Bank of England loans. Reports Forbes:

Significantly more than 314 mln stg this [sic] has been borrowed in one day in the recent past — for example nearly 4 bln stg on June 29 and 2 bln on July 2, he [George Buckley] added.

Read more: Pounds weakens as BoE confirms 314 mln stg use of its credit facility

Vietnam Sees Massive Forex Reserve Increase

Officials from the State Bank of Vietnam have confirmed that the country’s forex reserves have doubled, thanks to a solid investment in US dollars. What was once enough money to pay for 10 weeks of imports now buys 20. This windfall comes with a price, however, as inflation will now increase. Deputy Governor of the State Bank, Nguyen Dong Tien, hopes to keep the adverse effects to a minimum. Reports Daily Times:

Economists say double-digit inflation is a possibility, but Tien told the news conference that the central bank had stepped up its draining of inflation-fueling funds from the economy through open market transactions.

Read more: Vietnam doubles forex reserves