Pound Down Now That No-Deal Brexit Seems An Option Again

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The British pound has depreciated sharply following statements by Boris Johnson about the still-existing option of a no-deal Brexit.

The British Prime Minister said the United Kingdom is willing to stop trade talks with the EU if necessary.

The UK government is said to be planning a new bill that will nullify essential parts of the Withdrawal Agreement with the European Union. London would thus put a bomb under the current negotiations on a new trade agreement.

The pound lost nearly 1 percent against the dollar on Monday afternoon. This is the most massive fall in the pound since June this year.

Experts believe that the pound may well lose value shortly. They speak of the beginning of a “painful correction”.

The United Kingdom left the EU earlier this year. London and Brussels are now trying to agree on a trade deal. There must be a deal before the end of the year because then the transition period that started after Brexit expires.

Top European officials have repeatedly shown in recent times that the negotiations are slow. The British negotiator, in turn, warned that Brussels should not expect its country to compromise on issues it sees as breaking points.