7 June 1996

Green £ watching

AGRIMONETARY enthusiasts are eagerly watching developments in the foreign exchange markets, where the recent strengthening of sterling is in danger of triggering a green £ revaluation.

The gap between the market rate and the green rate mid-week stood at 5.25%. If that is maintained until June 17, it would automatically trigger a cut in the green exchange rate of at least 2.6%.

Since the new crop year starts on July 1, the effect would be an equivalent cut in set-aside and area aid payments in the UK. &#42