Sterling Impact On Import & Exports

October 27, 2022

The last few weeks, and months for that matter, have been an unprecedented time in British politics, with the financial markets and currency exchange reacting accordingly.

Following the mini budget, its reversal, a prime minister’s resignation, and a new one being appointed, the pound has slightly recovered against the dollar and euro in the past couple of days.

The strength of the pound clearly has a contrasting impact on imports and exports. Import products cost the UK more when the pound weakens, but our exports become cheaper to overseas buyers.

Below is a guide to how this translates to the exchange rates from this time last year.

US Dollar

This time last year the rate was around $1.38 to £1.00. Right now, that rate is around $1.16 for every pound. Therefore a product valued at $10,000 bought last year would have cost £7,246. Bought today it costs around £8,620, a rise of approximately 19%.

Whereby, a £10,000 UK product being sold to a country trading in USD would have cost them around £13,800 last October, but will now cost 16% less at £11,600.

Of course, none of these figures take the high rates of inflation into account, they purely demonstrate the impact of the exchange rates.

Euro

There is very little difference in sterling rates against the euro, compared to the same time last year. The current exchange of around €1.15 to £1.00 is not significantly different to the €1.18 of then. In fact, for the vast majority of the past twelve months the rate has been between €1.14 and €1.20, meaning the cost of import and export products have not been majorly affected by currencies.

For more information on the above, please do not hesitate to contact a member of the Freedom team.

Other News

Air Freight Feeling Effect Of Red Sea Crisis

Air Freight Feeling Effect Of Red Sea Crisis

Following ongoing attacks on commercial ships in the Red Sea, and the subsequent routing of ocean freight vessels around Africa, air freight has started to feel the knock-on effects. Longer transit times and equipment shortages in ocean freight have led to some...

read more
The Chinese New Year Of The Dragon

The Chinese New Year Of The Dragon

The Chinese New Year Of The DragonThis weekend sees the start of the new Chinese New Year - The Year Of The Dragon​ - Therefore, it's time to share some facts and information about this annual celebration. When This year's national holiday in China starts on Saturday...

read more
Asia Ocean Freight – Current Market Conditions

Asia Ocean Freight – Current Market Conditions

Ocean freight rates from Asia are spiralling upwards since the attacks on container ships in the Red Sea, with carriers also declaring ‘force majeure’ for shipments enroute. Rates that had already been subject to recent GRI’s and emergency surcharges are now moving...

read more
Holiday Season Hours, Transport & Storage

Holiday Season Hours, Transport & Storage

It's that magical but very busy time of year again, which means that transport services are often limited, with traffic and waiting times increased. Therefore, please be aware of our office hours, along with some air cargo transport and storage adjustments during the...

read more

Follow us on social media

Air Freight Services

Contracts with all major airlines and our own consolidation services.

View More

Ocean Freight Solutions

Flexible FCL and LCL solutions with all major carriers and alliances.

View More

European Road Freight

Pan European services for economy, express, full load, and intermodal.

View More

Customs

A one-stop shop brokerage service for all of your customs requirements.

View More