Irish exporters to the UK are facing a ‘severe threat’ as sterling hit a two-year low.
With the arrival of new Prime Minister, Boris Johnson and a more steadfast approach to 31st October as Brexit day, the pound saw its value slide with the possibility of no-deal becoming increasingly likely.
Marry that with comments from Michael Gove that the government is assuming that no deal will happen, and the markets were more than a little concerned that the UK really could crash out of the European Union without a transitional agreement in place.
The Irish Experts Association has said that they are deeply concerned that the impact no deal would have on Irish exporters into the UK and the adverse effect of a weakening Euro-Sterling exchange rate.
Simon McKeever, chief executive commented that: “We note with deep concern the trajectory in the Euro-Sterling exchange rate over the past 36 hours. The profitability of Irish companies exporting to the UK is heavily dependent on the exchange rate, particularly at these levels.
“This recent sharp adverse movement, caused by the increased likelihood of a no-deal Brexit, is a serious threat to many Irish exporters if not sufficiently recognised, managed and mitigated.”
With Halloween fast approaching, many commentators have urged businesses to prepare now with figures suggesting just 23% of businesses have activated contingency plans.
Interim director-general of the IoD, Edwin Morgan said that: “With business costs rising in many quarters, and management time precious, it’s understandable that firms don’t want to put resources towards preparing for something we still hope won’t happen.
“But the risk of no deal is very real and so we’d urge all businesses, if they haven’t done so already, to carefully consider their exposure and draw up mitigation plans now.”
If your business is yet to fully prepare for Brexit, especially a no-deal outcome, then time really is running out to make sufficient progress. Find out more about Go Exporting’s Brexit consultancy and help to mitigate the risks – and capitalise on the opportunities.