At present, the official exchange rate between UK pounds and US dollars is running at about $1.95 to the pound. However, if we compare the UK and US price of coffee in Starbucks and of burgers in Burger King, the functional exchange rate is $1.00 to the pound, give or take a few percent. Seeing as these organisations have to hire real estate, and pay the local wages, taxes, and overheads, the "coffee-burger" exchange rate of one dollar to the pound is a much more accurate estimate of the actual costs of living in the two countries.10th February 2007
