Following the UK’s decision to leave the European Union, the value of the British pound has plummeted, resulting in lower prices of British clothes sold in Iceland. The price of clothing from the UK could go down by 10 percent, Vísir reports.
The exchange rate of the British pound measured ISK 159.59 yesterday, which is the lowest since March of 2009. Since the Brexit referendum, the value of the British pound compared to the Icelandic króna has decreased by 11.4 percent, from ISK 180.13 to 159.59. That value has decreased by 23 percent in the past year.
Elísabet Inga Marteinsdóttir, chief operating manager for the British stores Dorothy Perkins, Topshop, Warehouse and Karen Millen reports the lower exchange rate will no doubt be reflected in prices in Iceland. “We are very pleased to be able to lower our prices,” she stated.
Svava Johansen, owner of NTC, also foresees a price reduction. “Very clearly, we foresee a reduction. We’re unpacking new British brands right now, among them Paul Smith, and we foresee a 10 percent price reduction. We’re very excited to be able to lower the prices of British products, and we have indeed increased our purchases from there.
The value of the British pound compared to the US dollar reached a 31-year low of USD 1.29 yesterday, which was a 14 percent reduction since the Brexit vote.