Brexit fears see the pound heading downwards every day

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© Jeanette Dietl / Shutterstock
Raiding the piggy bank.

AS PREVIOUSLY noted over the past few weeks, the fears that the proposed referendum might well see a British exit from the European Union has had a negative effect on the strength of the pound and the day that Mayor of London Boris Johnson threw his not inconsiderable weight behind the Brexit, it dropped against the dollar to the lowest point is has been since 2009.

Whilst it rallied a little, the downward trend is still that and until the final count takes place in June, currency markets are likely to be very hesitant about keeping sterling buoyant and if opinion polls over the next few months suggest a majority will vote to leave, then the pound will continue to suffer.

So many retired people in Spain who receive UK pensions in sterling are going to be worse off for as long as the pound remains weak against the euro. Many people have asked what will happen to them if Britain leaves the Union and one thing is pretty certain, in the foreseeable future, their pounds will buy fewer euros and therefore, they will be worse off and may have to take money from their savings if they have any!

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In 1992, people wore badges saying ‘Don’t blame me I voted Labour’ but for this referendum, it is so important that there is a full turn out, that we take this opportunity to remind readers that it is easy to register an overseas vote provided you have been out of the UK for no more than 15 years.

Very simply go to https://www.gov.uk/register-to-vote and complete the documentation which takes about five minutes or write asking for a postal vote. Unless you don’t care what happens to you  after June of this year, it really is important that every person who is entitled to vote does so to ensure that whatever the result, it does at least reflect the majority view, rather than that of a minority.

This is one occasion where don’t know simply isn’t acceptable as whatever is decided now will not just affect you but generations to come.

3 COMMENTS

  1. Humm… the pound has actually been dropping for several months now, sorry Boris but I really don’t think it’s ALL your fault! Every time anything that can change things arrives on the political front the £/$ rate and the £/€ rate can change, sometimes dramatically, as has been explained by economists… that is generally what happens around those times. Same happened when the question of the Euro came up for UK, all the scaremongering about what would happen if we didn’t join the Euro from the CBI, big business, Brussels and guess what…. well lucky for us we didn’t listen to them eh!

  2. Very good balanced article by John Smith.

    Hope the following helps those of you planning to register and vote. As an expat myself, I voted in the General Election. I was given a choice to use a postal vote or to vote by proxy. I was advised by the Electoral Registrar’s office to choose the proxy option because there was a high probability that by the time the ballot papers were posted out, received, and then returned by post the deadline would be missed and my vote would not be counted. Well, it would be a bit of a shame to go through all the process only to end up not being counted so I chose proxy and everything was fine.

    Just passing this on to recommend other expats in Spain would be well advised to use the proxy option if you can. All you need is to know someone whom you can trust to vote on your behalf, ideally living in the same constituency, and ask them to cast your ballot paper along with theirs. Assuming they consent, you just nominate them on the relevant application form. It’s possible of course that the rules may change and more time may be allowed for postal votes on this occasion, but I wouldn’t count on it.

  3. Hello “Mike in Esp”. I agree with you 100%. I will also add that just a few years ago the British Pound was just about on parity with the Euro (1.02?). This had nothing to do with Boris,or a Brexit. It does seem to me that the “Stay in” people will seize on any excuse to discredit the “Outers”,in this case it is the weakening of the pound.And yet not one of the “Stay ins” dares to have a discussion on the benefits of unrestricted immigration,other than rhetoric and emotion connected with the plight of the poor children in the camps. And that also has nothing to do with the plight of the pound……..

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