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    Manchester United's Chris Smalling, left, scores his side's third goal during the English Premier League soccer match between Manchester City and Manchester United at the Etihad Stadium in Manchester, England, Saturday April 7, 2018

    Premier League Footballers Moving Wages Abroad to Avoid Adverse Brexit Effects

    © AP Photo / Matt Dunham
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    Britain’s national currency, the pound sterling, has significantly depreciated relative to other major currencies as a consequence of Brexit, immediately plunging after the results of the 2016 referendum were announced and failing to stabilize as investors are increasingly worried about the UK’s future trading relationship with the EU.

    Premier League footballers are reportedly transferring their wages out of the UK to protect their savings from further depreciations in the pound, while some are buying assets overseas in the hope of preventing their earnings from being eroded by currency fluctuations and inflation.

    “[Footballers are starting to] repatriate wages paid in sterling to different countries as well as purchase assets and goods overseas,” Argentex, a financial services firm advising a number of Premier League stars, told the Financial Times on Monday.

    READ MORE: 'Not the End of the World': PM May Claims UK Can Benefit From No-Deal Brexit

    As of August 2018, the British pound is almost 15 percent weaker than it was prior to the referendum, and the currency is likely to further depreciate if Britain crashes out of the EU without a deal in place.

    In such an event, the pound would be at serious risk of reaching parity with the Euro or even falling below it in what would be an unprecedented shift in the EUR/GBP currency pair.

    A weaker pound gives Britons and others receiving their salaries in the currency less purchasing power abroad, making imports more expensive and holidays less affordable.

    However, Britain’s manufacturing industry is likely to benefit from a weakening pound, as UK-manufactured will become more price competitive abroad, though some economists and politicians have downplayed the benefits a weak pound offers.

    READ MORE: ‘People’s Vote’ Campaign Group To Pressure Corbyn on Brexit Stance — Reports

     

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    pound, currency, football, Brexit, Argentex, UK Government, European Union, United Kingdom
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