On Monday, the British pound’s steep drop against the greenback as well as the common currency since June’s Brexit vote has so far affected as many exporters as it has helped, as the British Chambers of Commerce revealed on Monday.
A cheaper currency normally assists exporters in the medium term, though the BCC told that sterling’s weakness was proving a double-edged sword for its members, medium and small businesses.
Some 25% of businesses told that sterling’s weakness had spurred their export margins, though 22% informed that it had reduced the profitability of their overseas sales.
Nearly half of the companies polled didn’t manage currency risk, and they didn’t have any plans to do so.
A great number of smaller businesses billed overseas clients exactly in sterling, though they paid for some of their raw materials in foreign currency, as the BCC disclosed, leaving them exposed to the costs of sterling’s dip unless they put up prices.
