The Central Bank in Ireland has produced separate article in its latest quarterly bulletin which examines the potential impact here of a major depreciation in sterling.
This is effectively what has happened since the Brexit vote. Stalker reckons we’ve already seen what happens, especially in the mushroom sector.
The article observes that the full effect is a complex one, which moderates over time, and results in a decline in real incomes and consumption in Ireland, as a result of the currency shock.
Stalker notes that sterling has nudged up to nearly €1.16 on the foreign exchange markets by mid-April. Bottom line though it doesn’t take much to weaken any strengthening trend.
