The rate of the British pound sterling is under pressure again. Almost two weeks after the Brexit referendum, the British currency dropped below 1.3 dollar this morning for the first time since 1985. Yet fresh produce exporter Philip van Geest of VGI is not worried about the consequences. “Import is now becoming slightly more expensive for the British, but inflation and exchange rate changes have always existed. You should just take that into account. Before the introduction of the euro, we also traded with the UK, and the pound fluctuated then as well. The balance will be restored in time because of the free market.”
“I personally think all the fuss is greatly exaggerated. I believe it is all bluff. You barely hear anyone about the consequences of the Brexit in the UK. Exporters to Britain have plenty of tools to minimise the risks of changes in the exchange rate. For example, you could sell your turnover in advance to the bank to cover your sales revenue on a daily basis. If the pound then goes from 1.30 to 1.20, you would not get your fingers burned. But you have to know what you are doing. If you agree on a fixed price and do not provide coverage, you could just as easily give up eight per cent,” Van Geest calculates.