STERLING is predicted to hit parity and even fall below the value of the Euro for the first time ever by the end of the year, thanks to Brexit.
Last weekend economic analysts Morgan Stanley speculated that, by the first quarter of 2018, €1 will be worth more than £1. They said this would be due to strong EU growth and political stability in countries such as France and Germany, as opposed to the uncertainty that continues to abound in the UK due to Brexit.
There has been a mixed reaction to the prediction locally, as the reversal in the exchange rate could be a welcome boost to the hospitality industry locally and to some other industries, while it could be crippling for others.
Cllr Paul Robinson, a farmer, said he believed the weakened Pound was already having an impact.
“I know from talking to the meat factories and that, exports are moving, beef and pork are moving,” said Cllr Robinson. “The price have never been as good. Sterling was too strong. Sterling is weakened now and it might cost more to import, but you can’t have it both ways. When Sterling was strong, exports were very poor.”
Not everyone agrees, however. Cllr Sheamus Greene said the continuing fall in Sterling didn’t surprise him, citing the inconsistency of the messages coming from the Conservative Government as why. He said exchange rate was like Brexit overall, it may have some positive consequences but overall would be detrimental to the people of Fermanagh.
“There will be some people, south of the border and that, who will certainly benefit as they’ll be able to come and shop and everything cheaper here, and possibly hotels as well,” said Cllr Greene. “There will be some people who gain, but the vast majority of people will lose out.
“There are possibly some benefits [to Brexit], but I would see the negatives being at 90 percent, and the benefits being 10 percent.”
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Posted: 1:09 pm August 18, 2017