Confusion surrounding the Brexit negotiations has not been eased any this week causing the GBP/EURO exchange rate to continue to fluctuate. On Tuesday, Sterling rose to €1.123 against the euro following a higher than predicted consumer confidence index. Rising from -1.2 to 1.0, it had recovered after three quarters of decreasing.
However on Wednesday, Brexit Secretary David Davis admitted that the vote in which MPs would be able to approve any final deal could actually be held after the UK has dropped out of the bloc, this news saw Sterling fall to €1.116.
The issue of the vote is tied up in the fact that no one knows when the negotiations are going to end, so really a vote is impossible to schedule. Mr. Davis also stated that he expects the Brexit negotiations to drag on until the very last minute on the last day of the deadline in 2019 and that he thinks this will be “very exciting”. When questioned if that meant the Parliamentary vote on the agreement could be postponed until after Brexit Day, in March 2019, he replied: “Yes, it could be”.
When quizzed on said comments by Mr. Davis, May gave no assurance that MPs will be able to vote on the UK’s Brexit deal before the country leaves the European Union. May declined to commit to holding the vote before Brexit Day, instead saying that she is “confident” a deal will be agreed with Europe far enough before the deadline to allow Parliament time to vote before Britain leaves the EU.
Later in the day, May’s spokesman also refused to guarantee that there would be a vote on the final Brexit deal in Parliament before the country leaves the EU. The uncertainty of the Government’s position caused an instant backlash from MPs who have begun a push to be guaranteed a vote before any deal is agreed on before Brexit Day.
Then came the blow that the post-Brexit transitional deal could be 20 months instead of the two-year period that was originally predicted. It had been assumed that the UK would be able to exist in a pseudo-Brexit state after leaving in March 2019, with final separation from the EU taking place in 2021. However after statements from Brussels officials, it looks like the UK could be officially out of the EU as early as December 2020.
With the current uncertainty, and further uncertainty looming, it’s even more vital than usual to get the best deal on any overseas payments your business makes. By using a forex comparison service like Kwanji, you’ll be able to receive transparent FX pricing that unlocks massive savings. This in turn protects your margins and ultimately your bottom line.
At Kwanji our team of experts are ready to help your business get the best deal on foreign exchange rates despite volatile market conditions.
To discuss your currency requirements contact us on +44 (0) 2032 879 375 , send an email to firstname.lastname@example.org or sign up below.