British Perspectives on Sterling's Massive Devaluation since the EU Referendum

The devaluation of the British Pound (GBP) since the EU referendum has caused a mix of frustration and concern, particularly for those who rely on international travel, remittances, or imports. The extent and nature of the impact often vary greatly based on personal circumstances and political viewpoints.

Common Reactions

While there is a diverse range of opinions, many British people are experiencing a sense of deep denial regarding the devaluation. Some argue that the sterling was overvalued before the referendum and that the drop in value on 23rd June 2016 was merely a market correction. Yet, for others who have traveled abroad or need to send money internationally, the impact is undeniable and significant.

For those who voted Remain, the economic damage caused by the devaluation is deeply concerning. They are acutely aware of how it affects their daily lives, especially when it comes to budgeting for international trips. However, those who voted to Leave often view the devaluation as a necessary sacrifice to assert their sovereignty and national interests.

Personal Experiences

Many individuals, regardless of political affiliations, do not notice the devaluation until they venture abroad. At that point, the impact becomes glaringly obvious. The hit to one's purchasing power becomes real, and the frustration with currency exchange rates is palpable. However, the narrative changes when it comes to future plans. For instance, if someone plans to travel to Poland or live and work in countries like Australia, the devaluation could present both challenges and opportunities.

In Poland, the pound didn’t stretch as far as it did before, making it less favorable for those planning international visits or expatriation. Conversely, for someone heading to Australia, the devaluation actually improves the currency exchange scenario, making it more advantageous to convert Australian dollars into pounds. This dual-edged impact also affects industries that rely on imports and exports.

For those who expect to benefit from the devaluation, it feels normal and aligns with predictions made by proponents of brexit ('projectfear' vs. 'projectreality'). Those who have a vested interest in the pound, such as pensioners whose savings are in pounds and plan to retire abroad, find the devaluation particularly distressing. The uncertainty around Brexit also adds to the overall anxiety, making it difficult to plan long-term financial commitments.

Conclusion

The devaluation of the pound since the EU referendum is a complex issue that affects various groups in different ways. While economic forecasts play a significant role in shaping perceptions, personal life experiences often dictate the emotional responses. As the situation remains uncertain, the impact of currency fluctuations will continue to shape British perspectives and behaviors in the years to come.