Brexit: The story so far, key timelines and its impact on the currency market

The United Kingdom, a part of the 28-country European Union (EU), has been a member of the European Economic Community for 46 years now. The UK had voted to leave the EU by 52 percent to 48 percent in June, 2016, and now the October 31, 2019 deadline for Brexit is staring the nation in the face. British Prime Minister Boris Johnson always said that he would not quit and insisted that only his Conservative Party could deliver Brexit.

Johnson proposed an all-island regulatory zone in Ireland in his final pitch for a Brexit deal before the end of the month. The plan involves a ‘two borders for four years’ measure that will leave Northern Ireland in a relationship with Europe until 2025. It accepts the need for both a regulatory border between Europe and Northern Ireland in the Irish sea for four years and customs checks between North and the Irish Republic. Positive comments from Irish PM Leo Varadkar that a Brexit deal could be clinched as the talks are moving in the right direction after his meeting with Johnson has pushed Sterling higher. But challenge to convince a deeply divided British parliament to ratify the agreement remains. Huge gaps continue to prevail in the respective thinking.

October 17-18: European Council Meeting to take place where there is a possibility of agreeing to a Brexit deal suggested by PM Boris Johnson. But it is also important to note that a deal needs to be approved by the parliament before it can be ratified.