Sterling Shifts As Ireland Promised Open Borders With Post-Brexit UK
Following the British Prime Minister Teresa May’s speech on the British Government’s plans concerning Brexit yesterday (January 17), the pound moved from a morning low of 88p to the euro to a trading price of 86p according to Yahoo.ie. This is a far cry from its pre-referendum price of 76p but better than its October low point, when the sterling traded at 90p to the euro.
May laid out a 12-point plan for Brexit, among them insisting on an exit from the European single market, maintaining the common travel area with Ireland, and a promise to place the final deal to a vote before both houses of the British Parliament. The sterling surge may be related to the latter announcement.
The news of the border plan will come as a relief to haulage and shipping companies based in Ireland and the North, who may have feared customs stops between Northern Ireland and the Republic. “Nobody wants to return to the borders of the past,” May said during her speech.
Of continued concern is the impact the exchange rate will have on Irish imports and exports with the UK, and to what extend trade between the nations will be impacted.
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