Pound Sinks On Brexit Battering Triggered By No Deal Threats

288

The long-suffering Pound is still taking a Brexit battering as Prime Minister Boris Johnson threatens Britain will leave the European Union come what may on October 31.

That means more Brexit uncertainty as the markets interpret what he says as probably a no deal exit.

Foreign Secretary Dominic Raab lit the blue touch paper for Sterling when he declared: ““We must be prepared to give the country the finality it needs, to prepare businesses and people more broadly.”

Relentless uncertainty has seen the Pound drop against the US Dollar and the Euro.

So, what does this mean for expats?

Booking.com

The nightmare scenario of parity with the dollar has arrived at some foreign currency exchanges.

Deal or no deal?

Airports, who notoriously off the worst exchange rates, are swapping £1 for 0.9 euros and $1.01.

For expats paid in Sterling, the dilemma is whether to change money now or wait for a recovery – which could be some way off as Johnson and the EU bristle with no deal and no negotiation stances.

Johnson wants a new withdrawal agreement without the Irish back-stop. His argument is that was Theresa May’s deal and it’s followed her into the dustbin of history. His message to Europe is offer a new deal or Britain will go on October 31 without one.

The EU says no renegotiation is possible and the deal is the deal.

One side will blink first, we just don’t know which.

One financial expert, Nigel Green, CEO of leading international expat financial firm deVere Group, predicts the uncertainty could last for years.

Brinksmanship

“Johnson is ramping up no deal preparations and it looks increasingly likely the UK crashes out of the EU in a no deal scenario in October,” he said.

“Even though this has largely been priced-in by the markets, there can be no doubt that it has also intensified uncertainty and, in response, the already weak pound fell and continues to flounder.

“We can expect this to continue as the Johnson administration takes brinkmanship with the EU to a higher level, the closer we get to the Brexit deadline.

“Should the UK leave with no deal, the pound can be expected to remain weak for several years until the country and the bloc readjusts.”

A falling Pound means the currency buys less foreign currency for expats and reduces their spending power.

Download the Free Pension Transfer Guide

Expat Pension Transfers Guide

iExpats.com expert writers have created a simple guide to Expat Pension Transfers just for you.

Find out how you could save tax, increase growth and investment opportunities with this simple, no-nonsense guide that will introduce QROPS, SIPPs and QNUPS options and talk through the pros and cons. Download the free guide by following the link below

1 COMMENT

  1. Reap as you sow comes to mind here. The vast majority of ex-pats have denigrated those who voted leave for 3 years now and it is their involved ant-brexit mutterings that have brought them to this – enjoy !

Leave a Reply