The pain grows for Irish exporters as the fall of the pound continues

  • The pain grows for Irish exporters as the fall of the pound continues
    Independent.t. E.
    Irish agriculture and food exporters do not feel the pressure at the exit of the UK from the EU uncertainty regarding the pound sterling to Euro exchange rate Hits a nine month low.
    https://www.independent.ie/business/irish/pain-grows-for-irish-exporters-as-the-pounds-slump-continues-37202471.html
    https://www.independent.ie/business/article36463771.ece/2e8f6/AUTOCROP/h342/2018-01-07_bus_37487431_I1.JPG

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Irish agriculture and food exporters do not feel the pressure at the exit of the UK from the EU uncertainty regarding the pound sterling to Euro exchange rate Hits a nine month low.

The pound continued its downward slide as the fear of not cope the British exit pressure drop in the British currency, which decreased in price to €1.10, and he shed 0.3 PC against the dollar to keep it at the level of $1.28, the lowest level in almost a year.

The fall of sterling blamed on investor fears that Britain would collapse without the EU trade deals.

The weak pound may represent good value for tourists who are traveling from Ireland this summer in the UK, but unfortunately for our domestic tourism industry, and this represents a serious risk for Irish exporters.

Bord Bia overseas trade Manager Shane Hamill reported that the decline of the pound sterling means more important to Irish exporters to find ways of hedging the British exit from the EU.

“In 2017, 80pc of respondents of the barometer of the output of great Britain, Bord Bia reported that they face serious difficulties in the course of the 90-94p for Euro”, – he said.

“In 2018 is reduced to 55pc. While the value of the pound sterling remains a risk of growth exporters to some extent are to increase stability by limiting and recovery of growth costs from the market through the management of costs and prices.”

Gerard Reilly, Reilly mushrooms, Walderstown, County Westmeath, warned that 15 companies have already closed, since the output of the UK voted two years ago.

“The exchange rate currently is about 89c/90C against the Euro. This puts pressure on exporters,” he said.

“There were about 700 producers in Ireland in 2004, but is now only about 40.”

Mr. Reilly added that, as it exports 90pc of its products in the UK, hard British exit from the EU would be detrimental to his business.

“We continue to trade and grow the same amount, but we grow in a more nervous atmosphere.”

Meanwhile, Trevor McHugh, Director of forest company VeOn Ltd, said while exchange rate fluctuations have the ability to affect the competitiveness of Irish exporters, the exchange rate usually settle after the extreme.

“Currency moves up and down over the last two years. We have seen the extremes, but it usually ends up. Timber prices remain strong and there is demand in the UK for Irish food, since they can’t produce the timber they need,” he said.

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