Sterling Reaches Two-month High After £58bn Brexit Divorce Bill 'agreed'

Prime Minister Theresa May

Sterling has climbed to a two-month high after it was reported a deal between the UK and EU leaders on the Brexit divorce bill was reached last night, with Britain's liabilities potentially reaching £58bn.

Sterling was trading at a high of 1.343 earlier this morning against the US dollar, up 0.4%. It was also up 0.4% against the euro to trade at 1.311.

According to the Guardian and various national newspapers, Britain is believed to have agreed to the terms in order to move forward with trade negotiations. 

A bill could total between £53bn-£58bn but it is understood the final amount will be kept secret in order to avoid voter recrimination. Initial figures had pinned the divorce bill at £40bn-£48bn.

The figure is 13% of the £660bn total liabilities the UK has committed to as a member state, reduced slightly when payments that the UK would have made to EU projects and the UK's capital share in the European Investment Bank are taken into account.

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It will not be paid in a lump sum but over time according to an agreement between Downing Street Brexit adviser Olly Robbins and the EU's Article 50 taskforce.

Under the terms of Article 50, the UK is set to leave in 16 months but deals over issues such as trade, the border with Ireland and protection of EU citizens are yet to be discussed.

It is expected that the commission will propose a joint statement for the member states to scrutinise over the weekend ahead of a series of meetings next week.

Prime Minister Theresa May (pictured) meets with Jean-Claude Juncker on 4 December before a meeting of EU ambassadors on 6 December and a European Council meeting in mid-December.

 

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