Government Step Up Planning For A No-Deal Brexit

Sterling fell again this morning as the government stepped up planning for a no-deal Brexit, reviving concern among investors about what would happen to the currency if Britain left the European Union without having agreed new trade arrangements.

With less than eight months until the March 29 exit day, diplomats in Brussels say they expect a delay in finalising the terms of Britain’s exit and may need to hold an emergency summit in November.

A rallying dollar and growing expectations that Britain could soon be fending for itself without any agreement with the EU, its biggest trading partner, are both punishing the pound.

Later on today, Britain will publish 25 technical papers giving advice for people and businesses to cope with any disruption arising from leaving the European Union without a deal.

Britain’s Brexit Minister Dominic Raab said he was confident a good deal with the EU remained in sight but that did not lift the currency.

Many economists say failure to agree exit terms would seriously damage the world’s fifth-largest economy as trade with the EU would become subject to tariffs and regulatory barriers.

Supporters of Brexit say there may be some short-term pain for the economy, but that long-term it will prosper when cut free from the EU.

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Equals Money and Ebury Partners UK Limited. Equals Money is a trading style of FairFX PLC. FairFX PLC is authorised and regulated by the Financial Conduct Authority to provide payment services. (Financial Services Register No: 488396). Currencies 4 You Ltd is partnered with Ebury Parnters UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers