Irish exporters facing severe threat from Sterling slump
IEA calls on businesses to risk-assess their exchange rate exposure to Sterling against any further weakening without delay
Dublin, 30 July 2019: The Irish Exporters Association (IEA), the voice of the exporting industry in Ireland, is deeply concerned about the effect that the recent adverse movement in the Euro-Sterling exchange rate may have on Irish businesses exporting to the UK. The sharp drop in the Pound over the past 48 hours indicates the likely impact a no-deal Brexit would have on the exchange rate – adverse and swift.
Commenting on the exchange rate’s development, Simon McKeever, Chief Executive of the Irish Exporters Association, said: “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.
We call on all Irish exporters trading with the UK, to assess their exposure to the EUR/GBP exchange rate without delay and if necessary, consult with their financial partners on the appropriate steps to mitigate their risks.”