Economic Report 2017

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Figure 13: US Dollar/Sterling Exchange Rate

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23 June 2016 UK votes to leave the EU

17 January 2017 Theresa May's Lancaster House Speech details the plan for Britain, which set out government's priorities when negotiating Brexit

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8 June 2017 UK's General Election

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1.3

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Exchange Rate (US $ to £)

29 March 2017 Article 50 invoked, beginning the withdrawal process from the EU

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Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17

Source: Bank of England

&or UK oil and gas Ɖroducers, there ǁas an additional Ɖositiǀe ďeneĨit to margins arising Ĩrom the currency de p r e ciat ion. Unh e dge d oil p r oduce r s w it h a local cost b ase se lling p r oduct int o a dollar - de nom inat e d glob al marŬet ďeneĨitted most Ĩrom the ǁeaŬer Ɖound, in some instances increasing reǀenues ďy more than 10 Ɖer cent w it h St e r ling- de nom inat e d cost s r e m aining unch ange d. In the 12 months Ĩolloǁing the redžit result, UK stocŬ indices ƉerĨormed ǀery ǁell͘ This is in Ɖart ďecause UKͲlisted comƉanies haǀe income in Ĩoreign currency, ďut also indicates that inǀestors ďelieǀed the shortͲterm ďeneĨit oĨ more comƉetitiǀe edžƉorts suĨĨiciently outǁeighed the longerͲterm uncertainty to create a ďull marŬet͘ ,oǁeǀer, ďoth the &T^ and AID allͲshare indices haǀe Ĩallen ďacŬ since the General lection result on ϴ :une, reinĨorcing t h e ne e d for t h e gov e r nm e nt t o finalise p olicy p osit ions and offe r gr e at e r clar it y on p ot e nt ial out com e s.

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