The British pound lost more than 1% against the euro and the dollar on Tuesday after Downing Street reported that Prime Minister Boris Johnson wants to legally ban any extension of the transition period following the Brexit beyond 2020.
At around 10:30 AM, the pound lost 1.20% against the Dollar at $1.3171 and 1.15% against the European currency at 84.56 pence to the euro.
Johnson has said he wants to legally prohibit any extension beyond 2020 of the transition period following the United Kingdom’s exit from the European Union on 31 January, a government source said on Tuesday, Belga reports.
During the transition period, current trading arrangements between the EU and UK would continue, and a future relationship between the EU and UK would be developed.
“Last week, the public voted for a government that would implement Brexit and allow this country to move forward. And that’s exactly what we intend to do this week,” said a source at 10 Downing Street.
“Our program made it clear that we would not extend the transition period and the new law implementing the withdrawal agreement will legally prohibit the government from accepting any extensions” beyond 2020, they added.