Sterling is at its lowest since 1985 – when the British economy looked very different
by Andrew Sentance
The UK has voted to sever one of the key international relationships underpinning our economy since the 1970s – membership of the EU. Not surprisingly, sterling has fallen sharply.
Against the dollar, the pound is now hovering around $1.30, the lowest level seen since the mid-1980s. The value of sterling against the Chinese yuan, the currency of the world’s second-biggest economy, is at an all-time low.
Since 2007, sterling has nearly halved in value against the Chinese currency. The decline against the euro is less dramatic – but the pound is back below €1.20 for the first time since 2013. British people holidaying in Europe this summer will feel the impact of the reduced purchasing power of their currency.