Sterling could face a further sell-off this week and deliver a fresh blow to Irish exporters into Britain amid more weekend revelations about David Cameron’s links with offshore funds, economists here have warned.
Currency markets — which have already sold down sterling amid fears that Britain will vote to leave the EU in its ‘in-out’ referendum on June 23 — will be closely watching whether the new disclosures will limit the UK premier’s campaign to stay in.
The warnings come as Ibec — the Irish Business Employers’ Confederation — today raised the level of its warning over the so-called Brexit vote, saying that sterling and Irish trade would slump and firms on both sides of the border would face huge disruption, should Britain vote to leave.
Its 24-page report, The Impact of a Possible Brexit on Irish Business, urges the main political parties here to strike “a speedy” agreement for a stable government and to “ensure Irish interests are safeguarded” .
“One of the most challenging things for business to deal with is this high level of uncertainty and exchange rate volatility,” Ibec warns in its latest report.
Sterling has dropped by over 16% in recent months — eroding a huge slice of the profit margins for Irish firms exporting into Britain.
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