Pound weakens again as EU talks face deadlock

Following the vote to leave the EU in 2016, the pound lost 10 per cent of its value. By the time the UK finally left the union in January this year, sterling had recovered some of its value.

Turmoil

It was then affected by the economic turmoil caused by coronavirus. Since the pandemic took hold, the pound has remained weak against the euro, but strengthened against the US dollar as the virus hit America.

Lee McDarby, managing director of corporate international payments at Moneycorp, said: “With January’s new post-Brexit arrangements with the EU just around the corner and major uncertainty in the wake of Covid-19, the agriculture sector is facing significant changes in the way they trade with the EU and the rest of the world.

“Currency markets will continue react to the progress of the negotiations. So, with this in mind, farmers should prepare for a weak or fluctuating pound, which if neglected could result in currency exposure eating into their bottom line.”