by FWi staff

STERLING finally gave in to pressure from the money market over the weekend and entered the first of a possible five revaluation periods.

The three-day agrimonetary rule was triggered on Friday as the Pound soared to DM3.04 against the Deutschmark. This opened up a 6% gap against three other European green currencies – the Greek Drachma, the Portuguese Escudo and the Spanish Peseta – which were all devalued.

If Sterling maintains a Real Monetary Gap at least 5% above the existing green rate of Ecu=£0.695735 during each of the 10-day confirmation periods, the green Pound could be revalued in May.

That would mean intervention and support prices paid to farmers would drop by a similar percentage.