Bank fees add to Brexit woes for UK importers

Published by Finextra

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Since the UK’s referendum on EU membership took place three months ago today, it is unclear if ‘Brexit’ has had a major impact on Britain’s overall economy yet.
However, since the Brexit vote, UK importers have been hit the hardest out of all businesses in Britain due to the decision to leave the EU.

• Quickly after the vote, sterling plunged to a 31 year low against the dollar and a 10% drop in trade-weighted value
• Overall, the currency is down 16% year-on-year (YoY) against the dollar – £1/$1.31 and 18% YoY against the euro – £1/€1.18
• These huge plunges in the value of sterling, currently for UK importers means costs for conducting their businesses have shot up by up to 16-18%
• Meanwhile, EU imports decreased sharply by nearly £1 billion in July 2016, according to HMRC

UK Importers, Down, But Not Out
Doron Cohen, CEO of Covercy, a cross-border business payments service enabling up to 80% cheaper transactional fees than traditional banks said:
“Three months on from Brexit, it is clear that due to sterling’s volatility, importers have seen the cost of doing business shoot up to unprecedented and worrying levels, which actually threatens their survival. This week alone the pound fell further by 2.5% against the euro and dollar, severely hampering British importers abilities to do business even further.”…