Published by The Covered Mag
Since the Brexit vote on 23 June, the value of the pound has lost almost a fifth of its value against the dollar.
Some argue that a devalued pound is a great opportunity for British exporters and the natural consequences of a currency which has been over-valued for too long.
Others make the case that it’s a damning indictment of the global finance market’s lack of faith in the UK’s prospects in a post-EU world, and will have a terrible impact on the money we pay for goods and services.
Doron Cohen, CEO of online cross-border payment service Covercy
“Sterling’s plunge is an indication that the markets clearly believe that there will be a ‘hard’ Brexit. In the short term, this means that the currency’s value could plumb new depths due to the atmosphere of uncertainty. The big question is if Britain will lose access to the single market. If it does, in the longer term, financial organisations, both big and small will face a much more complicated regulatory structure. Currently, organisations, like ours, can operate anywhere within the European Union. However, if single market access is lost, two separate licences will be required, one for the EU and one for Britain…