What is an easy way to remember the effects of the exchange rate on imports and exports?

These two simple acronyms will help you remember the effects of changes in the exchange rate on imports and exports:

Strong
Pound
Imports
Cheap
Exports
Dear

The acronym "SPICED" is a helpful way to remember that a stronger currency will lead to a decrease in the country's exports as they are more expensive through a stronger currency, and an increase in imports.

Weak
Pound
Imports
Dear
Exports
Cheap

The acronym "WPIDEC" is a helpful way to remember that a weak pound (or whatever currency) will lead to an increase in exports as they are now cheaper, relatively speaking, and a decrease in imports.

JC

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