Sterling side-steps revaluation period

by FWi staff

STERLING avoided entering the 50-day reference period for Green Pound revaluation which began today — but only just.

The Pound traded within 0.01% of its upper limit against other European currencies during the past 10 days, say analysts.

But it has since risen again to above DM3.00 against the German Mark and a revaluation could be triggered when the next reference period ends on 21 March.

According to the Home-Grown Cereals Authority, the situation needs to be followed extremely carefully.

The Pound is currently at the very top of its 5% band against other European currencies and &#151 if other currencies stay at their current levels &#151 any further rise would mean a revaluation is very much a possibility.