The pound sterling has been falling continuously for months and this collapse has consequences, above all, for consumers in the UK. However, our country as well as the people of Aragon cannot be excluded from some of the negative effects of this devaluation.

“The pound’s fall is not only related to Brexit, the international conflict in which we are moving and the political situation in this country also has a lot to do,” he said. Nieves Agreda, deputy director of the Zaragoza Chamber of Commerce. “When currency loses value, purchases you make overseas are more expensiveso that other countries have competitiveness in terms of exports”, explained Greda.

However, “the purpose of devaluation is to curb domestic consumption in England and we don’t know how this might affect exports Spain and Aragon”, added Greda.

“There could be a slight increase in product costs for UK consumers. That this then translates into reduced consumption is one possibility, but It is risky to say that if internal consumption decreases, Aragon’s export figures may be negatively affected. in that country”, stressed the deputy director of the Zaragoza Chamber of Commerce.

“The only positive thing about this devaluation is that the imports we make from the UK will be cheaper. For some sectors, such as the industrial or automotive sectors, which have important imports from this country, it can benefit them and reduce costs a bit,” concluded Greda.

Tourism and work, also suffer

Miguel Angel Poveda economist and president of the Spanish association of legal advisers, added a new factor to the equation for the pound’s fall. “Now it’s more exciting than ever to go to the UK for tourism, because the prices there are going down,” he explained. For the same reason, it will take more money for British tourists to come to Spain holiday.

Besides, “if the topic drags on it wouldn’t be interesting to work in the UK either because wages will lose purchasing power against the euro and the dollar” Poveda concludes.

This Tuesday the pound recovered some of the ground lost in recent days after the governor of the Bank of England issued an extraordinary statement on Monday in which he assured that institutions will not hesitate to raise interest rates.

In its pair against the euro, the pound sterling stood at 1.1216 euros, having posted a minimum of 1.0820 euros on Monday following the announcement of tax cuts by the British Government.

Compared to the dollar, the pound hit a low of $1.0384 on Monday, although it has recovered in recent hours to around $1.0810.

Compared to the dollar, the pound hit a low of $1.0384 on Monday, although it has recovered in recent hours to around $1.0810.