UK businesses are forecasting that their use of the euro in currency payments when trading internationally will be reduced in the next six months, according to research by East and Partners.
In a survey of more than 2,200 businesses, the researchers found that as the UK continues its political negotiations to leave the European Union, businesses in the UK expect to reduce their use of the euro by 7.8%.
The decline is expected to be greatest among smaller corporates - those with annual turnovers of between £20m-£100m - which have forecast on their use of the euro will fall on average by 23.1%.
New channels of trade
Many of the reasons behind these changes indicate that business leaders expect tougher terms of trade within the EU due to Brexit, and consider it prudent to open up new channels of trade or further develop existing trading partnerships outside the EU.
"While uncertainty may persist politically with Brexit, UK business is clearly planning to trade more beyond the EU,” said Simon Kleine at East and Partners.
He added: “UK businesses’ forecasts for currency usage going into 2018 show that they are definitely looking to trade more widely.”