Brexit pound has outperformed euro since UK left Single Market & Customs Union

Facts4EU reveals the truth about the two currencies after the UK left the EU’s control

Montage © Facts4EU.Org

Using official data from the two central banks we demolish another BBC Rejoiner myth

Yesterday Facts4EU.Org published a seminal report which proved immensely popular with the public, rebutting the anti-Brexit claims of the BBC.

This morning the BBC continues to promote its anti-Brexit report on the front page of its news website.

Today, therefore, we go one step further. One of our pieces of evidence in yesterday’s report was challenged by many Rejoiners who appear to find anything which contradicts their beliefs to be deeply upsetting.

Today we are providing further information which proves beyond any doubt that we were correct in our assertion.

The Euro has fallen more than the Pound since the UK left the Single Market & Customs Union

The United Kingdom finally left the EU’s Single Market and Customs Union at midnight on 31 December 2020. (See below for more on this.)

The following chart shows the movement in the value of both the pound and the euro since that date. We used the databases of the two central banks – the Bank of England and the European Central Bank – to bring readers this official information.

Brexit Facts4EU.Org Summary

The Brexit pound wins against the euro

Devaluation of the pound and euro against the dollar since the UK exited the transition period and left the EU's Single Market (01 Jan 2021) compared with today

Pound on 01 Jan 2021 : $1.3579
Pound today : : $1.1581 (-14.7%)

Euro on 01 Jan 2021 : $1.2296
Euro today : : $0.9951 (-19.1%)

[Sources: Bank of England daily spot rates | European Central Bank daily spot rates.]

The Euro has fallen against the US Dollar at a rate 30% faster than Pound has fallen.

Debunking the myth that the UK left the EU on 31 January 2020

Amongst the “clutching at straws” Rejoiner community there were some bizarre claims yesterday that we had used an arbitrary time period. We hadn’t. Our chart shows the value of the pound and euro against the dollar from the date the UK actually left the Single Market and Customs Union.

Some people continue to believe the UK left the EU on 31 January 2020, after Boris Johnson signed the abominable EU Withdrawal Agreement. In purely technical terms this is how each government describes it but the reality was entirely different.

An 11-month “transition period” then took over on 01 February 2020, and in practice nothing changed. The UK was still in the Single Market and Customs Union, still under EU law, and still trading with the EU and the world under EU rules. The only difference was – incredibly - that the UK no longer had any say over the laws under which it was governed.

If Rejoiners are ignorant of this, here is what the EU Commission has to say:-

“What happens on 1 February 2020?
“When the United Kingdom leaves the European Union on 31 January 2020, after full ratification of the Withdrawal Agreement, we will enter into the transition period. This time-limited period was agreed as part of the Withdrawal Agreement and will last until at least 31 December 2020. Until then, it will be business as usual for citizens, consumers, businesses, investors, students and researchers in both the EU and the United Kingdom. The United Kingdom will no longer be represented in the EU institutions, agencies, bodies and offices but EU law will still apply in the United Kingdom until the end of the transition period.
“In particular, the United Kingdom will remain in the EU Customs Union and in the Single Market with all four freedoms, and all EU policies applying.”
- EU Commission website, accessed 30 Oct 2022

Commenting exclusively on our report today, former Secretary of State and former Single Market Minister, the Rt Hon Sir John Redwood MP, said:

"The Euro has been weaker than the pound against the very strong dollar. The EU's energy position is much worse than the UK's.

"The UK can now invest more to push to self sufficiency just as the US has done."

- The Rt Hon Sir John Redwood MP, Sun 30 Oct 2022

Why compare with the US Dollar?

This was a question much asked by Rejoiners yesterday, believe it or not. There are three simple reasons:-

The US Dollar is the defining western currency used everywhere for comparisons
The US is the UK’s largest trading partner [Source: ONS]
Using the US Dollar allows an impartial comparison between the state of the Pound and the Euro

And finally, here’s the killer blow for the Rejoiner BBC and its followers

The BBC Brexit attack piece was ostensibly looking at the ‘impact of Brexit’. We therefore thought it would be interesting to look at the way in which each currency’s trajectory has fallen to see if there was any discernible ‘Brexit impact’.

There is only a positive one.

We invite readers to look again at our chart above. Firstly, the pound rose against the dollar for the first six months after the UK left the EU's Single Market and Customs Union.

Secondly, as it then moves down, it closely follows the downward movement of the euro against the dollar. In other words, there is no discernible Brexit impact other than a positive one.

Observations

Yes, the pound has fallen in value over many years. This started well before the EU Referendum and Brexit. What we have shown, however, is that when the UK finally left the Single Market and Customs Union on 01 January 2021, the Brexit pound has outperformed the euro.

The Facts4EU.Org and CIBUK.Org teams are strong advocates of freedom of speech. However, when it comes to the rules of impartiality imposed on the BBC in particular under its charter, it is wholly unacceptable for them to produce output which is so biased as to make it unwatchable for millions of people. The added insult of course is that we must all pay for their political bias, via the compulsory licence fee.

We only wish we had a guaranteed source of income like the BBC. As it is, we must rely on our readers to donate what they can to keep us pumping out the truth.

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[ Sources: Bank of England | European Central Bank ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Sun 30 Oct 2022

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Reader Comments 13

1. Buster , Sunday, October 30, 2022, 08:14:

Pound on 01 Jan 2021 : $1.3579
Euro on 01 Jan 2021 : $1.3579
Erm, you sure Brexit ?

2. Gazzablack , Sunday, October 30, 2022, 08:45:

Are you sure you can read Bluster?

3. Buster , Sunday, October 30, 2022, 09:43:

Yes, I can read. I copied and pasted the error. Which means Brexit read my comment and corrected his error without acknowledging making it.
Proper journalists acknowledge their mistakes and include corrections at the end of their articles.
Anyway, perhaps Brexit could also compare what the pound and euro were doing against the dollar the day before the Brexit referendum? Wanna hand?
This is important because it explains why Brexit has made you poorer. But at least you now get to stop brown people coming here. Lol. How’s that working out?

4. ste , Sunday, October 30, 2022, 09:48:

oh dear buster why O why do you not accept that societies only prosper and are 'good' when leaders are elected and accountable ???, do you think heading into a north Korea style arrangement will be good for citizens?. Are you also in favour of the 'digital prison' slowly been constructed around us by the globalists, where money will expire if not spent, and you will only be able to buy certain things based on your carbon credit score ??
EVIL is rising and i suspect you have been taken in by it

5. Michael Burnhill , Sunday, October 30, 2022, 10:24:

17.4 million people right again! But an even bigger threat to our democracy is World Economic Forum which many of our politicians have signed up to despite there being no debate with the people they represent and who pay their wages. Property ownership and democracy are both under threat and it's time we confronted our so called politicians to let them know it's unacceptable by voting for Reform !

6. James Murray , Sunday, October 30, 2022, 11:37:

The remainers are like spoilt kids if they don't like something about leaving the EU they throw their toys out of the pram

7. Richard Bentall , Sunday, October 30, 2022, 16:05:

It is very tedious to keep correcting the lies of Lies4Brexit:
On June 1st 2016, £1 = $1.57; on 1st Dec 2020 £1 = $1.34; on 1st Oct 2022, £1 = $1.12. Depreciation = 29%
On June 1st 2016, €1 = $1.12; on 1st Dec 2020 €1 = $1.11; on Oct 1st 2022 €1 = $1.02. Depreciation = 9%.
If Brexit really was good, you wouldn't have to keep lying on an industrial scale. Fortunately, hardly anyone reads you and most of those that do can spot your BS. That's why support for rejoining the EU is currently running at 58% and growing.

8. Lynn B , Sunday, October 30, 2022, 17:42:

Not something the Remainers want to hear/know

9. jon livesey , Sunday, October 30, 2022, 17:54:

Both sides are pretty much clutching at straws here. The Brexit case depends on looking at the Pound/euro rate since we actually left the transitional period, and the remainer case depends on comparing the rate today with a short-lived rise before the Referendum vote.
If you want to eliminate short run effects, simply take the ten year record. Ten years ago the Pound was 1.24 euro and today it is about 1.17. That is a slight decline but a pretty marginal one that could easily go away. In other words, on a ten-year view there just isn't that much of a case to be made either way. Certainly, a lot of waffle about how Brexit "made you poorer" is just over-heated nonsense.
Remainers only have themselves to blame here. They have been making such a lot of noise about a very temporary rise in the Pound before the Referendum - a rise that obviously went away - that other people then "correct" the record by taking other time frames. The lesson is obvious - don't cherry-pick your data and other people won't feel they have to cherry-pick theirs.
By the way, obsessing over exchange rates is very 1970's. What people rally *care* about is unemployment rates and real wages.

10. Tom Billingham , Sunday, October 30, 2022, 18:13:

Another excellent article using empirical evidence to dispel the misinformation from pro EU supporters

13 comments, page 1 of 2

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