Posted on Jul 22, 2019
The Pound Is a Brexit Barometer. It’s Not Looking Great Right Now.
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Britain’s currency sank to a two-year low last week, dipping below $1.24 as fears of a no-deal Brexit grew. Long seen as a symbol of Britain’s stability and national pride, the pound has in recent years become a barometer for concerns about the country and its departure from the European Union.
A cheaper pound could invite more foreign investment and tourism, but it could also hurt the country’s ability to buy goods from other places, especially at a time when it will need to negotiate trade treaties.
The currency’s fluctuations look set to continue. On Tuesday, the successor to the current prime minister, Theresa May, will be announced. If Boris Johnson, a hard-line Brexit supporter, is chosen, that raises new questions about how smooth the country’s exit will be.
A cheaper pound could invite more foreign investment and tourism, but it could also hurt the country’s ability to buy goods from other places, especially at a time when it will need to negotiate trade treaties.
The currency’s fluctuations look set to continue. On Tuesday, the successor to the current prime minister, Theresa May, will be announced. If Boris Johnson, a hard-line Brexit supporter, is chosen, that raises new questions about how smooth the country’s exit will be.
The Pound Is a Brexit Barometer. It’s Not Looking Great Right Now.
Posted from nytimes.com
Money
International Trade
European Union
United Kingdom
Posted >1 y ago
Responses: 4
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Nice share, PO1 William "Chip" Nagel The British Pound has lost significant value against the dollar in the last few years. The UK currency used to be worth twice as much as the dollar, and American's travelling to the UK were at a huge disadvantage when trying to purchase goods in England/Scotland/Northern Ireland. Now, American tourists can afford to travel there as the US dollar goes much further now.
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