DUBAI 5 August 2019: The pound plunged to its lowest since January 2017 on Thursday following on from new Prime Minister Boris Johnson’s pledge to leave the EU on 31 October, whether a deal is reached or not with Brussels.
Johnson is dividing opinion worldwide – and his arrival at Number 10 Downing Street is doing the same among UK expatriates in the UAE who are looking at their future savings plans.
Following the crash on Thursday, GWM handled hundreds of enquiries relating to how best to invest right through until the end of trading on Friday.
GWM provides financial advice to thousands of British expats in Dubai and Abu Dhabi. It said the week has been particularly intense with Johnson’s arrival sending shockwaves through the economy.
At the heart of this is the strength of the British Pound. It hit Dh4.45 to 1 GBP on Thursday, which is the lowest rate it has been at in two and half years.
GWM Chief Investment Officer, Iain Ramsay, said: “We had several clients coming to us on Thursday and Friday querying whether to invest now as they believe Johnson will stabilise the economy and the pound will strengthen or to hold out because they believe the lowest point has yet to be reached and Brexit will cause the pound to slump further.
“It has been a very busy time and we have a team of experts unmatched in providing this type of advice and we also have the office in the UK working around the clock to provide the very latest insight.
“There is no doubt that investing in the British Pound if you are earning in UAE Dirhams is a great option but we would not suggest committing everything now. It is about spreading that investment and staying on top of the latest happenings as we head towards Brexit.”