Leading foreign exchange experts Infinity International believe that at least 18 months of uncertainty beckons for investors following the UK Government’s decision to invoke Article 50 taking the country out of the European Union.
The UK-based company says that the triggering of Article 50 poses a whole host of questions for businesses and investors, many of which are unlikely to be answered for a considerable time during negotations between the UK and the EU over the next two years.
Infinity International analyst Perry Asforis said: “We have to accept that the British people voted to leave the European Union and that the British Government has honoured that decision.
“The triggering of Article 50 will, however, create a lot of volatility in the markets because now the heavy stuff really begins.
“There are so many questions that people need to have answered. What will the effect be on the financial markets? What will the impact be on business?
“Because these are big questions and complex negotiations, we really do not see any alternative to a prolonged period of uncertainty.
“Two years may seem a long time but in terms of complex negotiations like these, it really is not long at all. What investors need is an early indication that things are going well to settle a few nerves.”
How Brexit is likely to unfold:
April 2017 Both sides ready their teams and priorities
May 2017 Negotiations begin in earnest
Autumn 2017 It should become clear whether or not the sides are edging towards a deal on the amount of money the UK might owe the EU for future spending it agreed while an EU member. If this is still deadlocked, expect growing concern that negotiators might be running out of time to agree other details about the split
October 2018 The final deal is scrutinised by the European Parliament, the European Court of Justice and potentially 38 other regional and national parliaments.
March 2019 The UK will cease to be a member of the EU two years after the process began.
Infinity International’s clients benefit from access to the company’s prominent position in the global foreign exchange market, which allows it to secure the most competitive rates. More information can be found at http://www.iifx.co.uk /