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Sterling falls but not much

Pound sterling is falling but not as much as one might expect.

GAME CHANGERS
The pound fell to its lowest in almost three years due to growing concern about "no-deal Brexit”.

Today, the British pound slipped against the dollar to $1.1968, which is the lowest level since October 2016.

Nevertheless, amidst the panic in British society – there are talks about food shortages in the event of “hard Brexit” - the reaction of currency traders seems surprisingly calm.

Gordon Brown, the former prime minister, for instance, said yesterday that “to stop a no-deal Brexit is important because poverty otherwise will get worse, food prices will go up, fuel prices will go up and therefore people’s cost of living will be affected and, of course, people who are giving money to food banks will find it more difficult to do so because they themselves will be under pressure”.

Great Britain was supposed to leave the European Union in March but the country's parliament several times rejected the proposal of the then Prime Minister Theresa May on the terms of the deal with Brussels.

As a result, Brexit was delyaed first until April 12 and then until October 31. The new British Prime Minister Boris Johnson promises to leave the EU before the end of October under any circumstances.

The prime minister said there were "no circumstances" in which he would ask Brussels to delay Brexit and UK negotiators must be allowed to get on with their work without interference from Westminster.

In a speech outside of Number 10 Boris Johnson urged MPs against voting to block no-deal, saying it would “plainly chop the legs out from under the UK position”.

Published: September 3, 2019