SeanDoherty
New Member
A stronger euro to pound sterling exchange rate (EURGBP) will mean thousands of British farmers will see the amount due to them in European agricultural subsidies increase
Data at hand confirms that in Scotland alone some 15,400 farmers will see a increase in subsidies coming from the European Union as they have opted to receive payments in pounds.
Under the Common Agricultural Policy (CAP) UK farmers will now receive subsidies under the Basic Payments Scheme which replaces the Single Farm Payments scheme.
The exchange rate for converting euros into sterling is determined by the European Central Bank (ECB).
An exchange rate of €1 = £0.0.89115 has been set by the ECB for the upcoming payment window of December 2016 to July 2017,
In 2016 the conversion rate was set at €1 = £0.77730, this risen to 0.89114 in 2017.
Scotland’s Rural Affairs Secretary Richard Lochhead says the exchange rate is a notable problem for Scotland’s farmers:
“The euro / sterling exchange rate has been on a upward path over the past two years and, whilst there has been a recent decline in that last few months, many farmers and crofters will have been anticipating a u-turn.
Pound dives to eight-month low against the euro as dovish Draghi fails to convince markets
A more dovish tone from ECB president Mario Draghi at the central bank's policy meeting today couldn't stop overexcited traders sending the euro to an eight-month high against the pound and an almost two-year high against the dollar.
The ECB, as expected, held rates at 0pc and, with rumours swirling that the central bank will announce the winding down of its asset purchasing programme in September and has already started examining its options, Mr Draghi's dovish stance fell on deaf ears.
